Monday, July 28, 2008

Webb: Tyrant, Warner: Gutless

The Senate passed the silly and unconstitutional anti-free market foreclosure bill Saturday, and President Bush has his pen dripping in anticipation to sign it into law. Only 13 senators dared to oppose the economically ignorant juggernaut.

Virginia's U.S. Senators have proven once again that they have their own self-interests at heart: Webb (D) voted in favor of the bill, and Warner (RINO) abstained.

Check the news on Yahoo to see how your senators voted.

Here is what the presumtive law would do (from The Hill):

The bill props up Fannie and Freddie, known as government-sponsored enterprises (GSEs), allows the refinancing of up to $300 billion in distressed mortgages, enacts a package of tax breaks to help the housing market and tightens federal oversight of Fannie and Freddie. The two mortgage giants saw their stock plunge this month as fears rose about their solvency.

Specifically, the bill would give Treasury officials temporary authority to offer the GSEs an unlimited line of credit and to invest in the companies. It would also allow the Federal Reserve Bank the power to consult with regulators on the companies' financial health. That authority would expire in December 2009.

For homeowners at risk of foreclosure, the bill offers a new program within the Federal Housing Administration that would allow them greater latitude to refinance their housing loans at a discount.

Where in Article I Section 8 of the U.S. Constitution does it say that Congress has the authority to bail out stupid borrowers and negligent lenders at the expense of the taxpayers?

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