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Some Simple Rules to Avoid Another Housing Mess
Posted By Maggie Pitts On April 16, 2008 @ 4:16 pm In Economics | Comments Disabled
The New York Times  is shocked – SHOCKED – to learn the Senate’s legislative remedy for the mortgage mess offers surprisingly little relief for folks with problem mortgages, but gives huge tax breaks to “automakers, airlines, alternative energy producers” and others.
Doubtless the Gray Lady will be shocked at how the House proposes to restore balance: By drafting legislation that uses the taxes of responsible, middle-class homeowners and renters to bail out most everyone who’s in over their heads in mortgage payments.
And “everyone” means everyone. Even those who lied about their incomes to get loans they knew they couldn’t afford. Even speculators who knowingly gambled that they could turn a tidy profit by floating a mortgage and then quickly flipping properties. Even fat cats looking for help to pay off their vacation homes.
Bailing out people who’ve indulged in this kind of fraudulent or irresponsible behavior is no way to restore stability and sanity to the housing market. If lawmakers must meddle in the market, they should at least try to limit subsidies to those who (1) truly need help and (2) didn’t bring their current difficulties on themselves.
Here are three rules that would help:
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2008/04/16/mortgage-madness-some-simple-rules-to-avoid-another-housing-mess/
URLs in this post:
 Image: http://www.foundry.org/tag/mortgage-madness/
 The New York Times: http://www.nytimes.com/2008/04/16/business/16bailout.html?_r=1&scp=2&sq=stephen+labaton+&st=nyt&oref=slogin
 here: http://www.foundry.org/2008/04/16/morning-bell-steps-to-hault-future-bailouts/
 here: http://www.heritage.org/Research/Economy/HousingandFinancialMarkets/
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