[EarthStomper]

Why aren't conservatives more fired up over this issue? The government wants to take away the profits of perfectly legitimate companies and devalue our homes. What is going on here?

[Kimmers]

Bottom line I am not a fan of too many of the elected lately ....republican or democrat

[OSHA]

EM I'm gonna need you to finish those TPM reports, okay.

[stopem]

Because it's not clear to me as to what the RSC will be doing to homeowners. (?)

[Burlem]

because most people do not understand the premise of the post.

[Jimmy Valentine's brother]

As opposed to Fannie, which - under the leadership of Franklin Raines (a former Clinton official; go figure), OVER-stated its earnings to shareholders by a whopping $11 billion.

Jamie Gorelick also has her fine hand in the pot.

Oh yeah, Franky boy got a nice bonus based on those false statements.

You may find that both GSE's are under water.

I find it interesting that you don't think the market could provide home loans or that somehow this is a constitutional government function. Oh yeah, that's right the infamous commerce clause that FDR turned into a super highway made GSE's possible.

[jjm2111]

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[Apercu]

I fondly recall the scene from the dark comedy movie "Mars Attacks" where the Martians "clean up" Congress...oh well...if only life could imitate art.

[R W Reactionairy]

"Why aren't conservatives more fired up over this issue? The government wants to take away the profits of perfectly legitimate companies and devalue our homes. What is going on here?

One moment while I put on my Nomex suit.

Short answer: The Government should not be in the business of inflating home values.

Slightly longer answer: Fannie and Freddie are out of control and dangerous to the financial health of America ... In addition, social engineering through tax incentives in the name of home ownership is just another case of Washingtom distorting markets. You may like the results in this instance, but like interventions in general, Government actions deliberatly benefiting one group at the expense of others are just another form of fraud.

BTW IMO things are already so distorted in the residential real estate marret that any attempts to quickly deflate the bubble would be catastrophic. If I had a magic wand I would phase out Fannie and Freddie's Government granted advantages and make them bring their balance sheets into something less laughable [and pray that they do not collapse under their own weight in the meantime] and phase the mortgage interest deduction out over 15 or 20 years.

[NavyCanDo]

I read about this in this last Saturdays newspaper. If Bush takes away what we can deduct when itemizing it would be like his Dad's "Read My Lips" blunder. To be fare though, this is a bipartisan commission appointed by Bush. He could still stand-up and reject the proposal stating it amounts to a tax increase. Going to have to stay tuned to see what happens.