Wow. Our experiment is off to a great start—let's see if we can finish it off sooner than expected.
The overriding theme of President Obama's last few months has been "We Can't Wait." Translated, this means that we can no longer wait for congressional Republicans, who are plainly unwilling to address the nation's problems, so we're going to do everything we possibly can by executive action alone.
But as Ezra Klein points out today, that theme suddenly disappeared when the subject turned to relief for homeowners. Instead of proposing a limited program that he could enact on his own, Obama has deliberately chosen an approach that requires congressional approval:
In choosing to expand the program beyond Fannie and Freddie, the administration has also expanded the program beyond what it has the executive authority to do on its own. If they just wanted to further streamline the HARP program, they could recess appoint a new director for Fannie and Freddie and get to work. Creating the new program through the FHFA -- and paying for it through a new tax on banks -- requires congressional approval, and few think House Republicans are likely to sign onto a new tax.
The administration argues that there has been bipartisan support for refinancing initiatives in Congress. In the Senate, for instance, Republican Johnny Isakson (Ga.) has cosponsored legislation with Democrat Barbara Boxer (Calif.). And there’s no doubt that legislation produced with Congress’s cooperation can do much more to extend refinancing help than executive actions. But the question remains: If Congress ignores this bill, as they have ignored so many of the Obama administration’s other initiatives, is the White House sufficiently committed to leave Congress behind and use Fannie and Freddie to go their own way?
If this were any other program, I'm not sure this question would come up. But Obama's attitude toward homeowner relief has been so weak and so plainly inadequate for so long that his credibility on this subject is close to nonexistent. It's hard not to think that his latest proposal is meant more to score political points when Republicans vote it down than it is to actually help homeowners.