Bush Endorses Housing Bailout

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President George Bush announced this morning that he was giving up his opposition to the housing bailout bill. Over night news emerged that House and Senate leaders had reached compromise deal that would extend protections Fannie Mae and Freddie Mac and provide up to $300 billion to insure refinanced mortgages.
The president had said he would veto the bill on the grounds that it would "unfairly benefit lenders who made bad loans." It had been tainted by news that its most prominent supporter, senate banking committee chairman Chris Dodd, received massive campaign donations from Bank of America executives and sweetheart loans from Countrywide. A memorandum emerged indicating that the bill may in fact have been written around the requests of Bank of America.
In the end, it seems that everyone in Washington, DC decided to drop partisan fighting and ideology in favoring of "doing the right thing," by which we mean spending other people's money, increasing the authority of federal regulators and further distorting market processes.

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