The measure includes $300 billion in new loan authority for the government to back cheaper mortgages for troubled homeowners; $3.9 billion for communities to fix up foreclosed properties causing blight in neighborhoods; and $15 billion in tax cuts, including an expanded low-income housing tax credit and a credit of up to $7,500, to be repaid, for some first-time home buyers.So the Federal government is insuring even more mortgages and refinancing others at cheaper rates, and "providing" various other assorted goodies in order to save the financially imprudent, such as cleaning up the mess resulting from their foolishness, all off of the backs of people who actually try to save a portion of what they produce for future investments they can afford. That is, it's inflating yet some more and robbing the rest of us blind.
The number of homeowners who could lose their homes to foreclosure by the end of 2009 is estimated by some to be around 2.8 million. Under the legislation, 400,000 having trouble with payments could avoid it by trading their loans for new, more affordable mortgages through the Federal Housing Administration.
Of course, intervening in order to prevent people from experiencing the natural consequences of indulging in wishful thinking--instead of engaging in such reality-based activities as saving and spending only within one's means--has long been a U.S. government tradition.