Leaders of the House and Senate will fight the ongoing subprime meltdown by demanding that President Bush appoint the weakest of government figureheads: a czar. American czars have guided failed federal policy on energy, food safety, borders, drugs, AIDS, and the Iraq war. The appointment of a mortgage czar might be the strongest signal yet that all is lost; recession, if not a crash, a near certainty.
Democrats say they will offer a plan for increased funding for foreclosure prevention, and will seek to temporarily lift limits on the portfolios of government-sponsored Fannie Mae and Freddie Mac, which could help the housing market if they were allowed to handle more expensive mortgages.
The White House likely will respond by reminding lawmakers that they have not yet acted on the proposals for modernizing the Federal Housing Administration that Bush announced on Aug. 31 as the centerpiece of a 10-pronged plan he called “New Steps To Help Homeowners Avoid Foreclosure.”
Senate, House Dems call for mortgage czar [Politico]
PREVIOUSLY: Attention: The Subprime Meltdown Will Be Politicized