Congress this week may send a housing relief package to President Bush for his signature. The other major action in the House and Senate will be on energy-related measures, as both Republicans and Democrats propose fixes for high energy prices. There is also a primary election in Georgia this week, as we prepare for the fall election season.
Federal officials announced early this morning that the government would take steps to shore up Fannie Mae and Freddie Mac, the government-founded companies that finance about half of the home loans issued in the United States. Treasury Secretary Henry Paulson said the companies would be allowed to borrow money from the Federal Reserve, and the government might invest directly in the privately-held firms if their situation worsens. The steps are unprecedented, but officials have said the companies’ failure would cause further damage to America’s housing market and the overall economy.
Increased oversight of the firms is a central idea in the housing package approved by the Senate last week.