Senate passes housing bill amid turmoil | Thread profile

Senate passes housing bill amid turmoil - Jul. 11, 2008 The Senate measure would create a new $300 billion government-backed foreclosure prevention program and strengthen oversight of Fannie Mae and Freddie Mac. The two mortgage finance giants, which play a central role in the U.S. housing market, took a thrashing this week on Wall Street as investors worried about their financial health...

I'm actually thinking that this is a bad thing. One of the major problems this country has is cost-prohibitive housing. Backing overpriced mortgages keeps the prices up. Perhaps the best thing would be a total collapse that will bring housing prices in line?

Quote: Perhaps the best thing would be a total collapse that will bring housing prices in line? Actually, that is exactly what is happening in California. Since when did MTA become a free marketeer? I believe the feds should keep large mortgage houses from failing, but I don't think individual homeowners should be bailed out because they were stupid, ...