Bush Opposes Bill That Bails Out Lenders

President Says That Despite Economic "Tough Times," He Opposes Help For "Speculators"

(AP)  President Bush, acknowledging the economic "tough times" for many Americans, said Monday that he remains opposed to any homeowner rescue legislation that would be a bailout for lenders.

The president's comments came as Senate leaders are working on a bipartisan bill to help strapped borrowers get government-backed mortgages, paid for by tapping a fund designed to help poor families. Bush did not comment on that proposed legislation directly. He has threatened to veto a House version of the bill.

"Laws shouldn't bail out lenders," Bush said after getting an economic update from Treasury Secretary Henry Paulson. "Laws shouldn't help speculators. The government ought to be helping creditworthy people stay in their homes."

The president pushed Congress to pass legislation to more tightly regulate Fannie Mae and Freddie Mac, the government-sponsored companies that finance home loans.

"Our fellow citizens have got to know that these major players in the mortgage markets - if reformed properly by Congress - will really help stabilize the markets and make it easier for people to stay in their homes," Bush said.

The Bush administration on Monday also reiterated its stance that it remains too soon to consider a second economic stimulus boost for the nation. The first package produced tax rebates checks for millions of Americans. Bush said Paulson assured him that people are getting the money as promised.

"It should help our economy, and more importantly, help people pay their bills," Bush said. "And we hope people use that money and take care of their families and shop."

Many Democrats in Congress are pushing for another government-backed economic boost to help people deal with rising gas and food prices.

Meanwhile, Bush has threatened to veto a House-passed Democratic measure aimed at preventing foreclosures. It would have the government step in to insure up to $300 billion in new mortgages for distressed homeowners; Bush says it would "reward speculators and lenders."

Senators are working on a version that would tap a fund drawn from Fannie Mae's and Freddie Mac's profits to pay for a new foreclosure-prevention program. Many community groups want that money directed to a low-income housing fund. Yet without diverting the affordable housing fund, many Republicans say the bill would be a bailout that would open taxpayers to undue risk.

Negotiations were continuing on the possible bargain, and action on the proposed Senate bill was expected to pick up on Tuesday.

Bush spokesman Scott Stanzel said the White House had no position on the proposed bill yet.

[walt1944-2009]

The Great Emperor Bush II has stated that he will veto any bill which bails out home mortgage lenders who got us into this mess in the first place.

However, no one noticed that he had his fingers crossed behind his back when he said this.

Strangely, the Great Emperor does not consider banks as "mortgage lenders". Stating that laws should help "credit worthy" people stay in their homes, he did NOT say that those very same people could KEEP their homes!

SIG HEIL, BUSH!!!!!
sig heil, DEFINITELY MORE OF THE SAME, McCain!!!!

[missingamerica]

Posted by antoniof123 at 02:53 PM : May 19, 2008

lollll...you beat me to it, antonio.

Apparently, if some form of bailout is legislated, Bush thinks that is a bad thing.

But if Bush autocratically directs or condones a bailout that totally bypasses the Representatives and Senators of the American people - and thus the American people themselves - that is acceptable.

Seven years of war to get rid of the last one, and now after 225 years King George is back?

Way to drop the ball, Congress.

[veteran72]

"Laws shouldn''t bail out lenders," Bush said after getting an economic update from Treasury Secretary Henry Paulson. "Laws shouldn''t help speculators. The government ought to be helping creditworthy people stay in their homes."......

"And, War Profiteers that I know personally, of course, heh, heh, heh"......

[sistatee-2009]

Monthly stimulus checks are the only way to go. After people blow their money at the casino, somebody''s got to pay their mortgage for them.

[iphyt4u]

Bush has already handed out money to lenders via the federal reserve. Bush says one thing but does another.

[pierson98]

Bush only bails out oil companies, defense contractors, large corporations and banks.

Posted by shanev137 at 03:53 PM : May 19, 2008
-----------

Hey shanev - these ARE banks! That''s what Bush is talking about - bailing out banks. And he''s saying we SHOULDN''T be doing it! You moron.

I don''t like Bush either, but not everything he says is wrong. Bush could come out and say "the sky is blue" and you idiots would fall over each other trying to say how wrong he is.

[hypnotoad72]

He''s right. Lenders engaging in predatory/criminal acts should not get a free handout.

Middle class Americans have been hit the hardest, from predatory lending and/or offshoring.

[DaveGress]

REally? This from a guy who''s answer to every financial issue is to give away money. Really?

[shanev137]

Bush only bails out oil companies, defense contractors, large corporations and banks.

[libh8er]

Why shouldn''t he? It''s their fault. Making loans to people who didn''t deserve them. Making loans to get rich quich house flippers who over extended themselves. It''s not the fed''s job.

[antoniof123]

Let me get this straight he agreed with the Bear Sterns decision and now he doesn''t agree with this.

By and far you neo cons are dumber than dirt. I don''t like either one but you what if it keeps people from losing their homes and now after Bear Sterns then I am going to bet that congress just veto''s the village idiot and like his father before him he will leave in disgrace.

[culturechang]

Someone did not pay thier lobbyist enough to get Presidential support.

[gracchus1]

I must agree that it is somewhat surprising that Bush is not allowing wealthy bankers and subprime lenders off the hook. It is inconsistent with his policy of allowing his rich friends to get richer while the rest of the country suffers. We have Jim Wilkinson to thank for this (he is the architect behind the collapse of the dollar, in case you did not know).

[Gary Kempf]

dragonwagon5 at 02:10 PM : May 19, 2008

Goosed are he suffered a severe head trauma and has no idea of what is happening around him. It kind of looks like he no idea who Bush is.

[david1737]

Anyone who tells you that the Subprime loan situation is the fault of the borrower needs to keep in mind that in Ohio a total of 25 dead people were approved for loans.

Loans were approved which were called:

"No income/No assets"

Remember "regulations" are basically "rules."

Rules are the foundation of the civilized world.

[singingrick]

Surprising.

[david1737]

Of course.

Google Bush Savings and Loan scandal.

Deregulation of the banking industry is the root of the problem with both the subprime melt down, and the S&L scandal.

Google it!

Remember McCain was part of the "Keating 5."

[faith_in_w]

Hooray for President Bush! He, George the Purest, is not going to protect predatory lenders from the evilness of the deeds they done did no matter how much money is insured by the FDIC anyways. The FDIC was a bad liberal idea, when people save at a bank that goes bakrupt, we shoukld just point and laugh at them because they saved at the wrong bank.