Morning Bell: Another $275 Billion Down the Drain

Conn Carroll /

The House of Representatives is set to vote on a bill today that would round out the legislative authority necessary for President Barack Obama to institute his $275 billion mortgage bailout plan. Taken together the plans three main components (enabling some select borrowers to refinance their loans through Fannie Mae and Freddie Mac, enabling other select borrowers to modify their loans at the cost of taxpayers and lenders, and changing bankruptcy law to allow mortgage cram downs) will bailout the most irresponsible borrowers, raise the cost of borrowing for honest and prudent home buyers, and do nothing to stop the inevitable and necessary correction in housing prices.

For over a year, first the Bush Administration and now the Obama Administration, have been throwing billions of taxpayer dollars at a problem that does not have a big, invasive, government solution. The road back to economic prosperity lies in an honest assessment of our future spending liabilities, cutting spending, and not raising the tax burden on the American entrepreneurs who have always been the true source of our economic growth.

Quick Hits: