CBS Omits Skepticism of Homeowner Bailout Plan
Itâs another case of your government working for you, instead of you working for yourself.
After the Federal Reserve engineered a plan for JPMorgan Chase (NYSE:JPM) to take over ailing investment bank Bear Stearns (NYSE:BSC), the April 2 âCBS Evening Newsâ suggested the government should do the same for faltering homeowners.
âNow to the foreclosure crisis that has so many Americans worried about losing their homes,â âEvening Newsâ anchor Katie Couric said. âAfter the government helped rescue Bear Stearns, calls grew louder for Washington to help struggling homeowners as well. Today on Capitol Hill, there was at least the promise of some assistance.â
Details of the taxpayer-funded plan agreed to by the Senate Banking Committee still need to be hammered out, but the cost of the plan will run in the hundreds of billions. CBS correspondent Wyatt Andrews detailed some of the aspects of the plan.
âWith thousands of homes still going into foreclosure every day, the Senate has decided to act, piecing together a mortgage aid package to help stabilize the decline in the value of homes,â Andrews said. âWith details of the package still to come, states would get $10 billion to help refinance subprime mortgages. Localities would get $4 billion to buy homes in foreclosure. The biggest idea for home buyers is a $7,000 tax credit for anyone buying a new home, a home in default, or a home in foreclosure.â
That was an inadequate response for some. Peter Morici, a chronic advocate of government intervention and a frequent CBS News contributor, said the proposal wasnât enough.
âOne shouldn't view it as a silver bullet,â Morici said. âAs they see the need to stop the decline in housing prices, and they also need to do political damage control.â
Even though there is agreement on both sides of the aisle on the Senate Banking Committee on this housing legislation, House Speaker Nancy Pelosi (D-Calif.) isnât going to give the bill a free pass in the House, according to the April 3 Politico.
âThe Senate came together in a bipartisan way and gave a signal that Congress is prepared to act,â Pelosi said, according to Politico. âThere are some improvements that certainly need to be made. âŚHopefully the balance will swing to be more in favor of those families who are in danger of losing their homes."
CBS also quoted liberal Democratic Rep. Carolyn Maloney (N.Y.), who parroted the Wall Street/Main Street comparison the media and the Democratic presidential candidates have trotted out the last several months.
âWall Street has been helped, now itâs time to help Main Street,â Maloney said.
No Congressional Republicans or economists with a more laissez-faire view of government policy and economics were included in the âEvening Newsâ segment.