Calls grow for U.S. to bail out homeowners, prevent foreclosures

From Wall Street to Capitol Hill, calls are growing for the government to get into the mortgage business as the only way out of the housing crisis roiling the economy and the financial markets.

Proposals to shore up tottering home loans with taxpayer money are gaining traction in Congress and moving to the forefront of presidential politics.

Federal Reserve Chairman Ben S. Bernanke has also called on the lenders themselves to reduce the amount of principal that troubled homeowners owe on their loans.

The Fed has recently taken a series of aggressive steps to assist financial companies staggered by the credit crunch -- including providing a $30-billion short-term loan to JPMorgan Chase & Co. to facilitate its purchase of struggling Bear Stearns Cos.