Uncle Sam Gears Up to Rescue Homeowners

A federal bailout grows more and more likely as house prices plunge.

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This bit of news should be of no surprise to regular Capital Commerce readers—or those who watched me make just this prediction the other day on CNBC's The Call. Say it proud, Reuters: "As the U.S. government edges toward a more forceful response to the housing market crisis, a senior Democrat on Wednesday said a bill being created may call for federal purchases of distressed mortgages. House of Representatives Financial Services Committee Chairman Barney Frank said the bill from House Democrats may be unveiled next week to tackle what he called the worst housing slump since the Great Depression of the 1930s."