Almost 30 years ago, a steep rise in oil prices drove consumers to buy smaller, more fuel-efficient cars. Cars that American auto manufacturers simply didn’t make. The resulting huge drop in sales drove Chrysler to the brink of bankruptcy, but before the market could play itself out, President Jimmy Carter came in “rescued” Chrysler with $1.2 billion in loan guarantees. At first glance it may appear that Chrysler was saved from bankruptcy. But a closer examination of the record shows that even with the loans, Chrysler went through a quasi-bankruptcy. …
For most Americans, there are 100 shopping days left until Christmas. But for the special interests in Washington, there are only 10 shopping days left with Congress tentatively set to adjourn for the year on Sept. 26. One would hope the financial turmoil on Wall Street would give legislators pause to revisit past mistakes. No such luck. Even though the last $170 billion stimulus did nothing to help the economy, liberals in Congress are now pushing for upward of $75 billion in new deficit spending. The left has been preparing …
The two big issues in Washington this week are drilling and bailing out the automakers. Drill, baby, drill. For years, Congress has banned oil and natural gas drilling on most of America’s Outer Continental Shelf (OCS). Less than two weeks ago, the Republican convention erupted with chants of “Drill, Baby, Drill.” In a recent Quinnipiac poll, 62% of likely voters support “drilling for new oil supplies in currently protected areas off shore.” James Gattuso and Nick Loris of The Heritage Foundation have written that the federal government should put the …
Nothing gathers a crowd in Washington like the sight of money being handed out. Thus, in the wake of last weekend’s federal takeover of Freddie Mac and Fannie Mae, lobbyists for the automobile industry could be found stalking the halls of Congress, asking for help from the government too. Specifically, they are asking for $50 billion in federal loan guarantees to develop alternatives to conventional fossil fuel vehicles. The idea has garnered surprisingly broad support — with both Barack Obama and John McCain both expressing support for aid to the …
Great editorial from the Wall Street Journal exposing the mendacity of liberals trying to pass a bill that will allow the federal government to buy student loans directly from privately lenders. The WSJ links to a letter from Rep. George Miller (D-CA) claiming his bill “will carry no cost for taxpayers” and responds: How can he be so sure? Because his legislation instructs the Bush Administration not to lose any money on the program. Well, that was easy. Officials at the Department of Education, Treasury and the White House budget …
Pittsburgh Tribune-Review’s Bill Steigerwald posted a great Q&A interaction with Heritage housing expert Ron Utt this weekend. Excerpts include: Q: Is this subprime mortgage lending crisis sort of the final extension of this idea of liberalizing home buying? Is this what we get when we push it too far and make it too easy for people who shouldn’t really be borrowing to buy a house to get a house? A: Exactly. Until the mid-1990s there was not much of a subprime market because subprime borrowers were largely excluded. No one …
USA Today’s take on the mortgage mess posed a crucial question: “Should taxpayers in Vermont be asked to bail out home buyers in Nevada?” The nation’s No.1 newspaper went on to note: “The answer now taking shape in Washington appears to be, ‘Yes.’” But the multi-billion dollar question for taxpayers in Vermont and other states that didn’t plunge headfirst into risky housing deals is “Why? Why should we be stuck with the tab?” One answer to that question: “Politics.” Let’s go to the map: The housing bailout plans before Congress …
When Congress passed its economic “stimulus” package this February, lawmakers tried to make it look like the plan would help lower-income Americans while not benefiting the rich. They made the $600 tax credit ($1,200 for married couples) refundable and excluded anyone making more than $87,000 ($174,000 for couples) from qualifying. Looks progressive on first glance — until you do the math on a temporary provision Democrats inserted into the bill and now want to make permanent in new housing legislation. Fortune magazine’s Allan Sloan explains: The stimulus package raises the …
Now that the Senate has passed its “Foreclosure Enhancement Act,” attention turns to the House, which will hold hearings on its own response to the housing “crisis.” As the Christian Science Monitor reports, “at the heart of the emerging consensus is a bigger role for the Federal Housing Administration in helping borrowers refinance loans they cannot afford to pay. … [A]ll competing plans require an FHA that is up to the task of dealing with a crisis that industry experts say is uncharted territory.” But is the FHA up to …
Congress has returned from their spring break to mounting pressure to “do something” about the current financial turmoil. The Hill reports: “Republican senators have spent the recess hearing complaints from constituents about foreclosures and falling home prices, and they feel pressure to act by passing legislation.” Before Congress starts passing feel good legislation to show they are acting on the issue, they really ought to pay closer attention to what their constituents do no want them to do. In September the NBC/Wall Street Journal asked: “Is it the role of …
