Rescue of homeowners and mortgage giants by Livia Cseresova

On Wednesday, the rescue legislation sailed through the house, wanting to save 400,000 homeowners from foreclosure and also preventing the collapse of Fannie Mae and Freddie Mac companies.

The voting endend up at 272-152, and hours before voting, George Bush dropped his opposition to the measure, which becomes law in few days.

The final deal was advocated by Treasury secretary Henry M. Paulson and lawmakers in both parties and it accomplishes some Democratic priorities. Rep. Barney Frank said that "It is the product of a very significant set of compromises."

Paulson would push for enactment of the bill by the end of the week.And Bush thinks that the eighborhood grants would benefit bankers and lenders. But the White House said a showdown with Congress over the proposal will be ill-timed.

The Republicans will not support a bill which is a bailout for irresponsible homeowners and unscrupulous lenders. Rep. John A.Boehner said that it´s a bill he wish he "could support. It's a bill that the market clearly needs ... but this is not a bill that I can support," Only 45 Republicans for it, and Sen. Richard C. Shelby of Alabama said that Bush's turnabout reflected political reality.

Mark Zandi, chief economist at Economy.com said that the legislation "isn't going to be the catalyst for a better housing market," and that "It may staunch some of the downturn, but it's going to have a very modest positive impact."

According to Liz Glenn, , a community planning official in Baltimore County, the grants wououl „enable us to acquire and rehab more homes and offer them at an affordable price."

Also, the governmet want to rescue the mortgage giants Freddie and Fannie. Accoridng to conressional analysts it will cost the government $25 billion, but there is a better than even chance it will not be needed.

There is also a want to create a new regulator with tighter controls for Fannie Mae and Freddie Mac and modernizing the agency.

by Livia Cseresova for PocketNews (http://pocketnews.tv)

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edited by BEata Biskova