Was afraid something like this was coming. I doubt Bush cares much about individual voters – he cannot be re-elected and is increasingly unpopular with voters.
Housing: Bush Rides to the Rescue, Sort Of
… while the plan has borrower-friendly elements, it’s far from harsh toward business and wealthy individuals. For example, part of the plan is to allow people who borrowed from private-sector lenders to switch into lower-cost FHA-insured loans. So the lenders would get fully paid off, and the risk of default would be transferred to the FHA—and thus to taxpayers.
Of course, there are a lot very wealthy people who stand to lose a money, if the sub-prime market implodes. This is a great racket – investors make large profits off high-risk investments, and if the risk turns bad, they get a bailout from taxpayers.
A clearly written bit of background…
While you were away – fear and loathing in the markets – Times Online
Investors came to a shuddering realisation that much of the $300 billion (£150 billion) in home loans to America’s poor and others with patchy credit histories wasn’t going to be paid back. Enticed into home loans with attractive “teaser” initial terms, many were unable to meet monthly interest bills once the loans had reverted to normal money market rates. The rising interest-rate environment added to the pain. And falling house prices in the United States meant that lenders were left nursing losses even when properties were repossessed.