"House OKs rescue for homeowners, Freddie, Fannie"

Today the house passed a bill to bail out Freddie Mac and Fannie Mae with their struggling mortgages with a 272 to 152 vote. They said that

"The bill would let the Federal Housing Administration back $300 billion in new loans so an estimated 400,000 homeowners who cannot afford their house payments could try to escape foreclosure by refinancing into safer, more affordable mortgages. Lenders would have to agree to take a substantial loss on the existing loans, and in return, they would walk away with at least some payoff and avoid the often-costly foreclosure process."

No one bothers to mention that financial companies need to stop lending to everyone they meet. It is not a smart business decision. This why there are problems right now. If someone is 100k+ in debt, they probably should not get more loans or more credit cards. However, they don't bother to cut them off. I know Freddie and Fannie are mortgages companies. But same idea applies. No second mortgages. No extra loans

I am not sure how long the link will last. However, I know this issue is not going away that easily.