FINANCIAL CRISIS: Administration Plan to Buy Mortgages Flawed
Rather than just bailing out banks and investors, Washington needs to focus on helping homeowners. While stabilizing financial markets is important, the latest plan from the Treasury Department to purchase troubled mortgages leaves much to be desired. The true cause of the crisis - reckless lending practices that are leaving thousands of homeowners at risk of foreclosure - goes unaddressed in the Bush administration’s plan.
Much can be done to keep homeowners in their homes. The government can truly address this crisis by creating programs to modify loans to affordable levels, giving homeowners additional bankruptcy protections, and changing the complex agreements that limit the modification of these loans.
Center for American Progress: Neither Fair nor Effective
Progressive Conditions for a Bailout: Progressive Conditions for a Bailout