Suggested Alternative to Congress’ Bailout Plan Raises Opinion

A recent OpEd in the Washington Post introduces an alternative to the $700 billion economic rescue package being voted on this week by Congress, suggesting that the U.S. government buys delinquent mortgages to curb home foreclosures and restore stability to the economy. The article, titled the “Trickle Up Bailout,” argues that by refinancing home mortgages through the Federal Housing Administration (FHA), with help from government sponsored enterprises Fannie Mae and Freddie Mac, homeowners will experience immediate relief first–rather than powerful financial institutions.