Friday, August 31, 2007

I agree with Bush

It's not often that I think President Bush made a good move, but I think his statements and proposal today regarding the mortgage crisis (how long until someone dubs it "mortgagegate?") were necessary and right.

President Bush proposed a plan to assist those homebuyers who were enticed into buying homes at variable rates by mortgage companies that were more interested in selling a house than helping a family achieve the American Dream. You remember these companies - the folks trying to sell you on variable rates because "the rate could go down and if you're in a fixed-rate mortgage, you'll lose money," when the rate was at 6%. The rate COULD have gone down, yes, but it could also have gone up a whole lot more (i.e. up to 14%), and of course, they went up (go figure). Then there were the mortgages that started low, then popped up after a few years (introductory rate ended).

President Bush suggested that the Government should assist these people, so they don't lose their houses. He also said that this bailout should not be used to help speculators, or those who knowingly got into mortgages they couldn't afford. This latter one creates a bit of a loophole/wiggle room, because legally, "knowingly" doesn't mean you actually know; rather, it means that you SHOULD HAVE known, which could make it more difficult for struggling families to get the help they really need.

Some Democrats think the program is too late; others think it's too little. I think it's a good first step, and we should applaud the President for taking an important move toward helping American victims.

No comments: