Stiff Right Alert: Contact Your Senators Immediately! Help Stop a Huge Bailout for Bad Loans

H.R. 3221*, the American Housing Rescue and Foreclosure Prevention Act of 2008, was passed by the House 272-152 on Wednesday, July 23, 2008. (*The government website may not yet be updated following yesterday’s vote.)

The Senate is expected to vote on the housing bill on July 25th or 26th. Enactment of this legislation would be a victory for socialism and big government, but a travesty for U.S. taxpayers and limited government. This one-time energy bill was transformed into a vehicle for mortgage foreclosure prevention, then very recently revised again to include plans for preventing the failure of Fannie Mae and Freddie Mac, share-holder owned companies that have lost billions of dollars in the last year and whose stock prices plummeted, but then rebounded this week.

Fannie and Freddie are government-sponsored enterprises (GSEs), created by Congress to serve governmental objectives, such as that of encouraging home ownership. They are two of the world’s largest financial companies, holding two out of every five mortgages. Although Fannie Mae and Freddie Mac operate much like other companies, their close relationship with government is being used as a pretext for exposing taxpayers to part of their $5.2 trillion in outstanding debt and obligations.

H.R. 3221 would grant the administration authority through 2009 to loan money through the Treasury to Fannie and Freddie, or to buy (prop up) their stock. The plan has no dollar cap on the related spending other than by being subject to the nation’s statutory debt limit. The measure includes raising the national debt limit from $9.8 trillion to $10.6 trillion. As an interim measure until legislation is enacted, the Federal Reserve has given open lines of credit to Fannie and Freddie.

"JBS? That will last 5..4...3....2.."

Oh, right.

Since it came from the JBS, then we must trash it, right?

Heaven forbid we ever go against the globablist socialists in our own Congress.

Please disregard all of the following:

Please oppose H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008. Instead rescue taxpayers from big government and hyperinflationary spending. Taxpayers should not be forced to guarantee bad loans made by big banks and lenders, particularly Fannie Mae and Freddie Mac. Allow the free market to work and cleanse itself of excesses. Let poorly run Fannie and Freddie fail or be broken up and sold. It will teach other banks to be circumspect and not expect a bailout. Taxpayers should not be forced to cover bank and lenders’ losses on irresponsible and scandalous housing loans made to buyers who obviously could never afford their payments when extreme, artificially depressed adjustable mortage rates are reset higher. It is unfair for private investors of Fannie and Freddie to reap profits, as in the bubble years, but now expect the taxpayers to absorb their losses, potentially up to $5 trillion. Taxpayers should not be forced to prop up the stock price of any company. Put a stop to outrageous government manipulation of the stock market. It is a blatant repudiation of free markets and a warning sign of totalitarianism and corruption. Oppose expanding the emergency powers of the Federal Reserve. Reduce them instead. Do not allow this flawed bill to be railroaded through the Senate without allowing its members or the public sector time to scrutinize the latest version and suggest alternatives.

Oh, and since the JBS is against this massive unconstitutional bailout, I guess Free Republic must be FOR it.

“If the stock market likes this then we’re for it! :-)”

The stock market might like it now but it’s not good for America. People should lie in the bed they make. People think they are entitled to money when they are old and free health care. TAKE CARE OF YOURSELF or get your family to help. America: The nation that lost its bootstraps.

I called Bob Casey's (D-PA) Office and after a discussion about energy when I was told it's all the oil company and speculator's fault (blah blah blah), I stated that I should not be forced to pay for someone who bought too much house or entered into a “bad” mortgage. I was told that “we think you should”. I lost it. I went on a rant about responsibility and the government consistently screwing people who are doing the “right thing”. The response was “we can't let these people become homeless”. I ended the call with something about damn socialist.

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