What will happen if Congress passes the bailout bill? Nothing will happen, at least on the important aspect of the situation – what caused it. Congress will not investigate the root causes of this fiasco because they will have “dealt with it.”
That will mean that those responsible will not face the sunshine this situation deserves and requires. Barney Frank and Chris Dodd will not have their activities probed (no Barney Frank jokes, please), the donations they received will remain unscrutinized, the threats against lenders they made for not making loans to people who couldn’t afford them will go unmentioned. They will, quite simply, have gotten away with it.
All this plan does is what Congress has been very successful in doing with the looming entitlement crunch, kick the can down the road and let someone else deal with it. People who can’t afford to pay their mortgages still won’t be able to afford them after this bill passes. What will the feds do then? Forgive the loans and eat the loss? You’re crazy if you think the federal government is going to go into the eviction/foreclosure business. The opposition campaign ads would write themselves if that becomes the case. Both parties will get together to ensure that will never happen, which means free housing for those who helped get us into this mess. Now don’t you feel like an idiot for acting responsibly and NOT buying?
Just as a reminder, here’s what got us here. It wasn’t deregulation, or event the regulation we had at the time. It was the threat of more regulation and civil action. Well done, Democrats, well done.