The help President Bush signed into law this week will help some 200,000 people with mortgages that are in trouble. Some argue that Tax Payers should not bail out the bad choices of individual home owners or the mortgage industry. If the consequences of these failures only impacted those who made the bad choices that rational would make sense.
The problem is that the magnitude of the mortgage failures could trigger a major recession and credit crises. That is why the fed and Bush have decided to act. Former Fed Chairman Greenspan believes the mortgage problem is a VERY serious issue and has supported actual direct funding from the federal Government to individuals to help them refinance their mortgages to avoid default.
To date about 3 million mortgages have defaulted and there are as many as another 2 million that are believed to be in danger of defaulting. The plan Bush provided only deals with 200,000 of the 5,000,000 mortgages that are part of this problem. That means Bush has provided help for about FOUR PER CENT of the problem! Does he believe that the possible recession and credit problem can be avoided by dealing with only 4% of the problem?
The action Bush and his administration took to solve major issues facing our country do not come close to fixing the problem at hand. It is just like the Bush plan to give tax credits so people without health insurance can afford to purchase private insurance. The estimate is that the Bush health plan would solve the issue for 3 of the 47 million who need health insurance. That is just over 6% of the health insurance problem. Why does take action Bush takes does not deal with the issue at hand? So Bush and his SPIN DOCTORS can make it look like he CARES!