The Party and power of kNOw prevent mortgage cramdown
House Republicans have been doing a good job of presenting a united front of voting NO on the stimulus spending and bailouts since Obama became president. The media and Democrats have dubbed them the Party of NO. I prefer to think of them as the Party of KNOW. When you know what these irresponsible spending bills and what the burden of adding over $9 trillion in new debt over the next 10 years will do will do to our economy and our children's future, how can you vote any other way than no?
Some conservative Democrats, the Blue Dogs, have joined those voting NO on occasion. Yesterday marks the first time the Senate Republicans were joined by enough Democrats to defeat one of President Obama's "housing priorities." Dare I hope this is a new trend for the next 100 days--that reality is finally settling in? That more of our representatives realize it is time to leave the euphoria of Obama's inauguration behind and settle into the reality of what they are doing?
From the Wall Street Journal's Cramdown Slamdown:
The power of a united minority was on beneficial display yesterday, as Senate Republicans defeated the budget bankruptcy "cramdown" bill. Credit goes to Arizona's Jon Kyl and Minority Leader Mitch McConnell, who kept their party together to beat destructive legislation that had easily passed the House and was one of President Obama's housing priorities.
The cramdown would have allowed bankruptcy judges to rewrite contracts to reduce the amount that people owe on their mortgages. But a bipartisan majority understood that relief for today's troubled borrowers would be paid with higher rates on the next generation of homeowners, as lenders priced the added risk into mortgage contracts.
A dozen Democrats joined Republicans in the 51-45 vote, and even Pennsylvania turncoat Arlen Specter gave his former GOP comrades an assist. Speaking for millions of renters and nondelinquent borrowers, Mr. McConnell said that the vote "ensures that homeowners who pay their bills and follow the rules won't see an interest-rate hike at the whim of a bankruptcy judge."
I am hoping this "first major legislative setback" will be the first of many more legislative setbacks. After all, there is still health care and cap and trade to be worked out. A girl can hope.