Today in Washington D. C. - April 1, 2008

Congress returned yesterday but today on April Fools Day many "progressives" prepare to play the fool, or at least attempt to fool the public by advocating legislation with "nice title" but whose content is designed to expand government and to reduce individual liberty and choice. In the Senate: There will be a vote on the motion to reconsider cloture on the motion to proceed to the housing bill. If the motion is agreed to the Senate is expected to take up H.R. 3221, which will be used as a vehicle for the housing legislation, S. 2636. The bill previously failed to get cloture in February because Democrats insisted on pre-approving Republican amendments to the bill.

Senate Republicans are again interested in offering sensible ideas on housing. Sen. Johnny Isakson of Georgia has proposed a one year $15,000 tax credit for people purchasing a foreclosed house. Senate Republican Leader Mitch McConnell said the proposal “will raise the value of homes and increase the stability and security of neighborhoods that have been hit hard by foreclosures.” Sen. Reid has called this and other GOP ideas “A good starting point.”

However, there are troublesome provisions in the Democrats’ bill. Particularly problematic is language which would allow bankruptcy judges to rewrite mortgage contracts and change interest rates. Because of the increased risk this would impose on lenders, this provision would force interest rates on mortgages higher. The White House has said it would veto the bill because of a provision that would allow bankruptcy judges to change the terms of a homeowner’s mortgage.

From Senate & News Sources:U.S. News & World Report notes, “[m]ore people would be hurt than Democrats say will be helped—for example, more than 400,000 people in New York state and more than 500,000 people in Illinois . . . .” Las Vegas Review Journal editorialized today, “Who the heck would loan money in the form of a low-interest mortgage, if judges are empowered to unilaterally alter the terms of that contract later on? A stable economy depends on the presumption that the courts will enforce legitimate contracts. President Bush should stand firm in his refusal to endorse this dangerous nonsense.”

In other Congressional news, Roll Call reports today that the Colombia Free Trade Agreement continues to face stiff opposition from unions and many of their Democrat allies on the Hill. Sen. McConnell urged Democrats to allow the agreement to be approved: “The Colombia Free Trade Agreement is more than an act of friendship between allies. It would also strengthen our economy, and it would send a strong signal to Colombia our other Latin American allies that the U.S. stands with those who support strong markets and free societies in the face of intimidation and threats.”

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