Rep. Price: Housing Bailout Irresponsible At Best

Press Release

Rep. Price: Housing Bailout Irresponsible At Best

Rep. Tom Price issued the following statement after the passage of H.R. 3221, the Foreclosure Prevention Act of 2008. In addition to a $300 billion bailout of banks and borrowers, the legislation provides an extraordinary new taxpayer backing of Fannie Mae and Freddie Mac.

"This legislation sets the bar on irresponsible policy at a new high," said Rep. Price. "The multitude of bad ideas contained in this taxpayer-funded behemoth far outweigh any positive solutions it may provide. Misguided policies and political paybacks are only a prelude to a massive new liability for the taxpayer.

"Without so much as a hearing, this bailout will create an historic new transfer of liability from private businesses to the American people. Having already asked taxpayers to pick up the tab for irresponsible banks and borrowers, this new mega-bailout now puts the American taxpayer on the hook for the bad investments of supposed private giants Fannie Mae and Freddie Mac.

"And in a paradoxical irony that only this Democrat leadership could produce, the legislation levies a new tax on the very companies it professes to help. While alleging a desire to keep Fannie and Freddie afloat, the majority seeks to siphon off hundreds of millions of dollars to fund an ‘affordable housing' slush fund. Middle class Americans pay the bill while favored organizations collect political favors from this fund.

"It is continually striking that every ‘solution' from this new majority includes higher and higher costs from hard-working taxpayers. True to form, Democrats even slipped an $800 billion increase in the national debt limit into this gambit.

"This legislation asks for more sacrifice from American taxpayers but provides no assurance that we will not be right back here again in the future. The American people need a real promise that they are not responsible for picking up the pieces from reckless policies. Protecting taxpayers from fiscal abuse is essential, and I will work to responsibly ensure the American people do not find themselves in this unenviable position again."

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