Our Boneheaded Congress
Trying to come up with yet another way to buy votes by screwing around with the housing market.
"We are in the midst of a crisis -- and one that is deepening," said Rep. Steve Chabot, R-Ohio, the lone Republican to support the bill, adding that he was "worried about keeping the residents of my district and in the state of Ohio in their own homes."
Uhh, Stevie, if they're not paying their mortgage, it ain't their home. It's the bank's home.
But enough on pointing out the obvious. What these boneheads don't realize is that they are going to make things worse on the people they purport to be helping. Pass this law and the capital to lend to low-income people will dry up entirely, or come at such a price that none of them will be able to borrow. The investors who provide that capital will demand huge payments to offset the risk that the borrowers will just toss up their hands and file the BK.
Here's hoping the Senate is smart enough to kill this legislation. But with Schumer running amok in there, I doubt it.