WASHINGTON — President Bush on Friday announced a set of modest proposals to deal with an alarming rise in mortgage defaults that have contributed to turbulent financial markets over recent weeks.
Housing analysts said it was highly likely the limited steps Bush outlined will be expanded in coming weeks by a Democrat-controlled Congress intent on responding to growing voter anxiety as up to 2 million homeowners worry about losing their homes.
Officials in the troubled housing industry said the important thing was that the administration had finally offered a proposal, a step they said should help calm global financial markets that have been on a rollercoaster ride in recent weeks as investors worried about a serious credit crunch.
"This is not a cure-all, but it is good to see something coming out of the White House," said David Seiders, chief economist for the National Association of Home Builders. "It is good for markets, both domestically and internationally, to see that the White House is facing the problem head on and at least starting to do something about it."
... can anybody say Herbert Hoover?