Is the Mortgage Business Bailout a Stimulus Package?

Perhaps.

All indicators are that we are in a serious economic slowdown and in some quarters the word recession is being whispered. I would tend to agree that we are definitely on the verge if not in a full recession but I further think it will be mild.

That said, is the Bush plan to bailout the mortgage industry a plan to get the housing market back on track? Housing got us through the recession that Bush inherited and is one of the bulwarks of a continued strong economy. Plus, injecting money into the mortgage business may lead to a boost for the building trades who are suffering bad right about now.

Now don't get me wrong, I'm not an advocate of the government bailing out any private business or industry but Bush has to calm the markets and reassure a wary public and he probably sees this as his last, best hope for doing so. By bolstering a failing industry, he may stave off foreclosures in a couple of million homes and thus save local towns from implosion from falling property tax receipts. Add to that the Democrats not making the Bush tax cuts permanent thus raising taxes on millions and we have the makings of catastrophe.

I've not seen a drastic increase in foreclosures or for sale signs in my town but I'm sure that should the economy continue to shrink, we'll see more and more towns not meeting budget expectations and that's where the real problems will become manifest.

Link via Instapundit.