Countrywide 'Bailout' Is Dem Chicanery

Congressional Dems are selling their $300 billion bill granting new taxpayer loan guarantees as a boon to homeowners, but Dick Armey sees more cynical motives in the “bailout” legislation. The former House majority leader writes in the Journal, pegging the recent revelations of sweetheart Countrywide loans for top (Dem) “banking players” to the active legislation, charging that “it’s all too clear who is being rescued.”

Armey says the bill is anti-market in propping up “reckless mortgage lenders,” and will seriously damage FHA—which will have the worst loans from the worst companies “foisted” on it. The venerable Republican further says that Dems are “holding hostage” reforms to Fannie Mae and Freddie Mac, pressuring right-wingers first to OK the sweetheart deal for subprime scoundrels. (More Dick Armey stories.)