The evils a broad bailout for reckless lenders and speculative buyers are so obvious that even President Bush can understand them.

Referring to the housing bill that has bipartisan support in the Senate, Mr. Bush said that "Laws shouldn't bail out lenders. Laws shouldn't help speculators. The government ought to be helping creditworthy people stay in their homes."

Bush has also threatened to veto the "cash for trash" bill that would use taxpayer money to insure $300 billion in mortgages for distressed home owners. Remember: if the banks won't make the loans without a federal guarantee, it's because they know that the loans are garbage. If we're going to use taxpayer money to insure the loans, we should expect to shell out a good chunk of money when they end in default.

The larger point that people are missing here is that no homes will be lost -- the person who sees their home go into foreclosure will have to move into a rental --, but the sale of that distressed property might be the difference between renting and homeownership for a young family. Or it could be sold to an investor, adding to the supply of rental housing and making that more affordable. It's not like the banks are foreclosing on houses and then burning them to the ground.

It's a sign of an election year when an outgoing President of very limited intellect can understand something that far more intelligent politicians running for office can't.