Friday, May 9, 2008

Hodes Backs Massive Mortgage Bailout

Puts Taxpayers on the Hook for $315 Billion

(Hillsboro) Republican Grant Bosse today blasted Democratic Congressman Paul Hodes for backing a massive bailout of the home mortgage industry, and putting taxpayers on the hook for bad loans. Massachusetts Democrat Barney Frank authored the bill to force taxpayers to guarantee up to $300 billion in new home loans.

“Clearly, many people who were betting on rising home prices were hurt when the housing bubble burst, but we can not force taxpayers to insulate everyone from the costs of those bad decisions,” Bosse said. “Hodes’ massive bailout bill will allow these folks to avoid responsibility for their actions and pass along those costs to American taxpayers.”

The Frank Bailout Plan also included a separate bill with $15 billion for the federal government to purchase vacant, foreclosed homes, bailing out the banks who issued loans to unqualified applicants. The Democratically-controlled House of Representatives approved both bills with Hodes support this week. The bailout package now heads to the Senate for further consideration.

“If we use tax dollars to bail out everyone who makes a bad decision, we are setting ourselves up for an even larger housing crisis in the future,” Bosse concluded. “Paul Hodes just voted to put an additional $315 billion on our credit card, which means higher taxes for everyone when we have to pay the bill”

No comments: