The bipartisan housing bill now moving through the Senate is not the Big One. The big one is the $300 billion-$400 billion plan from Democrats Chris Dodd and Barney Frank for the government to buy troubled loans and rework them. Dan Clifton over at Strategas Research gives his two cents on its future:
Investors and the media seemed surprised the Frank/Dodd provision was not included in the legislation. The Frank/Dodd legislation is operating on a separate track (Financial Services Committee hearing April 9th) which will have lots of hearings over the next month. While Sen. Dodd attempted to include this provision in the legislation, the provision itself may not have the support to move forward, yet. We are also looking for a similar proposal from the Bush Administration.