MORE COLLATERAL DAMAGE FROM THE CREDIT CRUNCH

(h/t Dean Baker at TPM)

I'm all for helping people stay in there homes but not when it comes at the expense of other people who are even worse off.

Paulson Upbeat on Economy and Markets, but Not Housing
Treasury Secretary Expects Growth to Rebound in 2008

By Lori Montgomery
Washington Post Staff Writer
Saturday, May 17, 2008; Page D01

(excerpt)

Congressional Democrats and other critics have charged that the administration's efforts are failing to reach the most desperate families who are months behind on their mortgage payments and in immediate danger of losing their homes. Late Thursday, the Republican and Democratic leaders on the Senate Banking Committee reached a tentative deal to help those borrowers by further relaxing eligibility standards for government-backed loans. To cover the cost of the program, Sens. Christopher J. Dodd (D-Conn.) and Richard C. Shelby (R-Ala.) agreed to use a portion of the profits from mortgage financing giants Fannie Mae and Freddie Mac that had been set aside for low-income rental housing.