Following the defeat of the $700-billion bailout package on Monday, Rep. Jeb
Hensarling (R-Texas), chairman of the Republican Study Committee (RSC),
introduced a bill that he said relies on the free market rather than the federal
government to solve the nation’s financial problems.

Instead of mandating that the U.S. Treasury purchase up to $700 billion in
teetering mortgages and mortgage-backed securities, as the plan backed by the
Bush administration and congressional leadership mandated, the RSC alternative
would try to restore confidence in the mortgage market by insuring all such
investments at 100 percent of their value...