Both Republicans and Democrats in Congress are rushing to provide help to Americans who took out mortgage loans they couldn’t afford to pay off.
Why? It’s an election year. Debating the issue too long and too objectively might cost votes.
According to The Associated Press, a plan approved by a Senate committee last week is intended to provide assistance to as many as 500,000 individuals and families who cannot afford the mortgages they were given. The bill would provide as much as $300 billion in new loans for homeowners who are struggling and cannot obtain fixed-rate, government-insured mortgages on their own.
Huh? Three hundred billion dollars for 500,000 homeowners? That works out to $600,000 each.
Don’t expect the vast majority of Americans, who stayed within their limits when buying homes, to like that idea.
On the other hand, do expect Congress to approve the bailout. Votes by the hundreds of thousands are at stake, after all.
And it won’t cost lawmakers themselves a dime. Instead, responsible homeowners will be among those paying the tab — and, we hope, remembering that at election time.