Just one month after President Bush and Democratic leaders hailed their bipartisan agreement on an economic stimulus plan, the two sides went back to war on Thursday over how to deal with widening damage from the housing and mortgage crises.
Republican senators, lining up with President Bush, are expected to block a Democratic bill that would provide more money for homeowner counseling programs and change the bankruptcy law to let bankruptcy judges modify mortgage terms for people about to lose their houses through foreclosure.
Meanwhile, Treasury Secretary Henry M. Paulson Jr. flatly rejected Democratic proposals to rescue hundreds of thousands of borrowers, as well as their mortgage lenders, by having the government buy up and restructure billions of dollars in delinquent home loans.
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Read more about how Bush, Paulson, and Bernanke strongly object to changing bankruptcy laws to protect homeowners caught up in the mortgage meltdown.
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