Backlash grows as Congress moves toward housing rescue

0 Comments | AFP, May, 2008

WASHINGTON (AFP) — As Congress moves to aid distressed US homeowners, the prospect of a new rescue is drawing fire from a diverse array of activists, economists and consumers opposing what they call a bailout.

The House of Representatives on Thursday approved a bill to create a 300-billion-dollar federal guarantee for new mortgages for people who may be at risk of losing their homes. President George W. Bush threatened to veto the measure, calling it a reward for speculators and lenders.

While lawmakers are eager to avert a wave of foreclosures that could trigger further economic shock waves, some argue that any new program would help a small segment of the population who made risky bets on the housing market.

"Do not bail out greedy homeowners that took out...