Modifications May Be Done to Fannie and Freddie's Rescue by the House

[pennypinch]

A Bush administration proposal to allow the Treasury to assist the beaten mortgage giants, Fannie Mae and Freddie Mac, will go to the House next week.

A broad outline of the proposal by Treasury Secretary Henry Paulson offering assistance to Fannie and Freddie will most likely be put in place by lawmakers.

The House is likely next week to take up a Bush administration proposal to empower the Treasury to back up embattled mortgage giants Fannie Mae and Freddie Mac.

But House Financial Services Chairman Barney Frank, D-Mass., and other key leaders are expected to impose parameters that will counter concerns that the plan gives Treasury a blank check.

Jeanne Sahadi

I won't pretend to understand all that is going on with the crisis but I am very concerned, just as many leaders are, that this will essentially give them a blank check. That is about the last thing this country needs right now. We need to get out of the hole, not drive ourselves deeper into it.

Modifications May Be Done to Fannie and Freddie's Rescue by the House

[dollardaze]

I agree with your concern, pennypinch. I feel that the government has let all this mess happen with the economy and now wants to throw money at the problem. I think the lenders should take some responsibility in this matter. They have nickel and dimed the borrowers to death, and created a monster here. I think we need to quit bailing them out, and there is no time like the present. After all, who is going to pay in the long run?? We are - with our tax dollars.

[dimetime]

I also agree with everyone. I wont claim to understand it all either, but I sure know that in the end everyone will be chipping in to pay for it all. Though let us all hope that Barney Frank, chariman of House Financial Services, along with the other leaders will be able to get set parameters. The last thing this country needs is higher or even more taxes put into place, just to pay for this.