Sunday, July 27, 2008

US Senate Approves Housing Aid

The U.S. housing market looked a less grim this week when the Senate approved a bill that provides $300 billion for a rescue fund intended to bail out home owners who have defaulted on loans as well as mortgage companies like Freddie Mae. The bill help hundreds of thousands of American's who can't make their mortgage payments by creating state-backed loans that have a fixed interest rate. 

Putting policy aside, the bill will help many Americans who would have lost their homes. The bill may also lead to increased consumer confidence as less people fear foreclosure. This is an example of a government taking care of its people.  

(Originally reported by the BBC.)

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