I always referred to Washington D.C. as the swamp for a number of reasons. Our government leaders are striving for new lows; as Leaches-R-Us.

In response to possibly the worst mortgage mess since the Great Depression, the Senate reached agreement this past week on an aid package for homeowners facing foreclosure. The Washington Post reports that the plan “would provide $4 billion in grants for cities to buy foreclosed properties, temporary tax breaks worth up to $7,000 for home buyers who purchase foreclosed properties, and new tax deductions for almost every American who owns a home.” It would cost $15 billion over 10 years.

Previously, President Bush proposed giving federal dollars to lenders agreeing to forgive a portion of the debt owed them by insolvent homeowners. If passed, it will be the first time an administration has used federal funds (read: taxpayer dollars) to bail out irresponsible borrowers. The Bush administration’s plan is similar to that of Rep. Barney Frank (D-MA), the Housing Financial Services Committee Chair: Both call for strict requirements to determine eligibility, and both stipulate that homeowners either remain in the home or share profits should they sell or refinance. There are differences, however; for example, Frank’s plan commits $300 billion in federal dollars, including a $10-billion set-aside to buy foreclosed homes that have been vacated.

These efforts are designed to help the millions of borrowers with negative equity in their homes, many of whom took out loans requiring no money down. While heralded by Democrats, the measures anger conservatives, who point out that the federal government is irresponsibly (not to mention unconstitutionally) inserting itself into the free market. “It’s one thing to help people who made a rational decision, who were spammed or defrauded,” said Sen. Tom Coburn (R-OK), “but it’s another thing to reward people who thought they were getting something for nothing, and knew what they were getting into.”

Further complicating the matter for the administration is the recent resignation of Housing Secretary Alphonso Jackson. Jackson, a collaborator on President Bush’s plan, stepped down amidst a federal investigation into his alleged awarding of valuable housing contracts to associates. So once again, as in so many political intrigues, the words of the Gipper come to mind. “The most terrifying words in the English language are: I’m from the government and I’m here to help.”