Published: May 17, 2008 09:40 am         

Other View: Inaction is not an option

Home foreclosures are surging. Housing prices are sinking. And the broader economy is sputtering.

That should galvanize Congress and the president to deal aggressively with the mortgage crisis that's hobbling the economy. But Democrats and President Bush are at odds over what to do.

Last week, the House passed responsible legislation to stave off foreclosure for hundreds of thousands of American homeowners. But Bush dismissed the bill as a bailout and threatened a veto. The president and Republicans should reach a compromise in the Senate -- or bear the blame for further deterioration of the housing market. ...

(T)he administration's reliance on the lending industry's voluntary steps to help homeowners hasn't stabilized the market. HopeNow, an industry alliance, modified 131,522 subprime loans in the first quarter.

There should be a middle ground between underwriting a broad bailout for homeowners and staving off disaster for the economy. Inaction is not an option.

San Jose Mercury News