The Foreclosure Prevention Act (a k a the Bank and Builder Bailout Act)

By Dean Baker

t r u t h o u t | Perspective
Monday 07 April 2008

Conservatives used to complain liberals always wanted to throw money at problems. While there may have been some truth at times to this charge, Congress decided to literally take this path in its approach to the housing bubble last week.

There are many villains in the story of the housing bubble, but the homebuilders and the mortgage industry would go on almost everyone's list. The homebuilders rushed ahead with new developments under the delusion the bubble would last forever. The result is an unprecedented glut in housing.