Housing: Bush Rides to the Rescue, Sort Of

The President's plan to allow distressed homeowners to switch into FHA guaranteed loans stops well short of a full-scale bailout

President George Bush waded into a political swamp on Aug. 31 when he announced a plan to help homeowners who can't afford their mortgages. There's no clean solution to this mess, and Bush and his advisers know it (see BusinessWeek.com, 8/28/07, "What Will Fix the Mortgage Mess? "). The President was aware that he had to do something about the plight of homeowners facing foreclosure, but he also knew that if he did too much, he would bail out people who didn't deserve to be bailed out.

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