Main Street

Obama to Order Mortgage Bailout?

After bailing out the banks (we all know how that went), the administration may finally be turning its attention toward Main Street: Reuters is reporting widespread speculation that President Obama may order mortgage lenders Fannie Mae and Freddie Mac to forgive a large portion of mortgage debt for Americans who owe more than the value of their homes. The bailout, which could reach $800 billion, may come through the Home Affordable Refinance Program (HARP), instituted during the Bush administration. Such debt forgiveness would be a bold move, allowing the Dems to showcase agency in reviving the nation's faltering economy, and it might be a last-resort effort to bolster sinking poll numbers before the November midterm elections.