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.
