College Republican Federation of Virginia

Rep. Jeb Hensarling has proposed a new free-market based plan.  This story, reported by my CNSNews.com colleague Josiah Ryan this morning, is welcome news to those of us who feel that socialist command economics are are not the answer.  The plan would, in short, allow floundering financial institutions to purchase insurance on their troubled mortgage-backed securities.

Hooray for that.  This plan allows banks and investment houses to allow the market to value these securities on its own, rather than have the Treasury Secretary dictate it.  This way, people who do pay their mortgages won’t have them bought by the government and financial institutions worried about those who don’t won’t have to write-down enormous amounts of their assets.

Hopefully, House conservatives will use their considerable leverage to get most of this bill passed.  Te insurance option is the best not only for the economy, but for the taxpayer as well, because it doesn’t put us on the hook for the entire value of these securities, as Paulson’s 5-year plan would.

Call your legislator, mine already voted no on socialism, and tell them you support the free market.