The Senate Sandbox
At the end of March 2008, the United States Senate agreed that a bill must be passed to help the country homeowners in crisis. But hope for any compelling type of aid to the U.S. economy dimmed as Congress and the White House took yet a third, more dwindling approach.
While the Senate, the upper part of Congress, was developing a $15 billion bill that included $6 billion in tax write offs for banks and homebuilders, the House of Representatives introduced an $11 billion deal more to aid homeowners who struggle with mortgage debt.
The two plans would have to be consolidated – an overwhelming job because of the huge gap between them – before President Bush would give his approval. The federal housing administration announced today its plans for a small-scale program that will encourage banks to take on more losses in mortgages for a swap of rewritten loans that cash depleted homeowners could manage.
The International Monetary Fund gave warning that the $150 billion tax rebate that Bush approved may not be sufficient to ward off global recession; the blow to the Congressional attempts at economic betterment by the White House does not help the situation.
Bush does not support the Senate housing bill, even though his Republican followers had a key role in its drafting. Bush objects to the part that offers tax benefits for people who want to buy foreclosed homes. That part of the bill would most likely only help speculators trying to make a buck off the crisis, and bailing out lenders.
A Bush aide was skeptical that Congress has the ability to agree to a housing package that will make it to the presidential desk. The House has decided to move ahead with its own plans anyway.
The tension between the White House and Congress, along with the Democrats in the House and Senate, will come as the president makes plans for an economic conference with top legislators today.
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