President Bush unveiled a plan that would help approximately 1.2 million homeowners facing staggering increases in their monthly mortgage payments. The proposal, reached during negotiations led by Treasury Secretary Henry Paulson with the mortgage industry, would freeze introductory teaser rates on some subprime mortgages, preventing them from resetting to higher rates within five years. Bush has stressed that the deal is not a bailout because no government money is involved. The mortgage companies have agreed to freeze the lower rates so long as the borrowers don't miss any payments. Two million subprime mortgages have already reset from rates around 7 or 8 percent to as high as 11 percent, adding hundreds of dollars to the typical mortgage payment. For background, see the following CQ Researcher reports: "Mortgage Crisis" (Nov. 2, 2007) and "Consumer Debt" (March 2, 2007).
Chavez Opponents Defeat Referendum
Venezuelans danced in the streets after voters struck down an all-or-nothing referendum on 69 proposed constitutional amendments, including one that would have allowed socialist President Hugo Chavez to seek re-election indefinitely and tighten his grip on the oil-rich nation. Another proposal would have granted complete control over the autonomous Central Bank to Chavez, in effect giving him control of the country's economic policy. Chavez has accepted the vote and called the slim margin — 51 percent to 49 percent — a "photo finish." The White House praised the result as a victory for freedom and democracy. Chavez originally threatened to cut off oil supplies to the United States if U.S. officials questioned a result in his favor.
For background, see the following CQ Global Researcher report: "Energy Nationalism" (July 2007); and the following CQ Researcher report: "Change in Latin America" (July 21, 2006).
Senator Questions Megachurch Finances
Six of the country's largest megachurches are under investigation over whether the lavish lifestyles of their ministers violate their tax-exempt status. In letters sent to the churches last month, Sen. Charles Grassley, R-Iowa, ranking member of the Senate Finance Committee, asked the ministers to provide details regarding their finances. Grassley questioned whether the high salaries of the ministers and the perks provided to them are proper expenditures for tax-exempt organizations. Creflo Dollar — who owns a Rolls Royce, private jet and multi-million-dollar home — of World Changers Church International in suburban Atlanta has rebuffed the inquiry and has asked Grassley to get a subpoena or refer the matter to the IRS. Bishop Eddie L. Long, also from suburban Atlanta and who is also under investigation, has called the inquiry an unjust attack on religious freedom and property rights.
For background, see the following CQ Researcher report: "Rise of Megachurches" (Sept. 21, 2007).
