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Goverment Bail-Out

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With opposition from some Republicans, and an expected veto from President Bush, yesterday the U.S. House of Representatives passed legislation that would allow the Federal Housing Administration to fund new mortgages and help about 500,000 homeowners avoid foreclosure. Via the Los Angeles Times: "Another provision, with particular relevance to California and other states with high home costs, would permanently raise to $729,750 the limit for mortgages that government-sponsored holders Fannie Mae and Freddie Mac can buy." Supporters note the current housing crisis is dragging down the overall economy; White House calls the legislation "taxpayer-funded bailout for lenders and speculators." [LA Times]