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Clinton urges $30B fund to aid homeowners

U.S. Sen. Hillary Clinton, in a swing through the Philadelphia area yesterday, proposed a plan for the nation's housing crisis, rallied with women backers and addressed a simmering controversy about her travels as first lady.

U.S. Sen. Hillary Clinton, in a swing through the Philadelphia area yesterday, proposed a plan for the nation's housing crisis, rallied with women backers and addressed a simmering controversy about her travels as first lady.

Calling the meltdown in the home-mortgage industry an "American-dream crisis," Clinton, in a speech at the University of Pennsylvania, called for a $30 billion federal-aid package and other steps to remedy problems in the housing industry.

"Our economic crisis is, at its core, a housing crisis," Clinton said, "a crisis caused in part by unscrupulous mortgage lenders and brokers . . . in part by speculators who were buying multiple houses to sell for a quick buck."

Clinton said she supports legislation making it easier for bad mortgage loans to be sold to companies willing to work out payment plans with strapped homeowners, with government guarantees for some of the restructured loans.

"It is a sensible way for everyone - lenders, investors, mortgage companies and borrowers - to share responsibility, keep families in their homes [and] stabilize communities and the economy," Clinton said.

She also called for the appointment of a "working group" of distinguished economic advisers, such as former Federal Reserve Board chairmen Alan Greenspan and Paul Volcker, to recommend steps to improve the industry within 30 days.

Clinton also proposed a "one-time emergency $30 billion fund" to aid cities and states in helping communities harmed by mortgage foreclosures.

U.S. Sen. Barack Obama, Clinton's chief rival for the Democratic presidential nomination, also supports the congressional legislation she cited.

The Obama campaign responded to Clinton's appearance yesterday by listing large contributions she has received from lobbyists for insurance and lending companies.

The Clinton campaign fired back by releasing a list of contributions that Obama has received from companies involved in sub-prime lending.

In the early afternoon, Clinton got a lift from more than 1,000 supporters at a "Women for Hillary" rally at Montgomery County Community College, in Blue Bell.

Calling her candidacy an "awesome experience and responsibility," Clinton asked the enthusiastic crowd to support her not because she's a woman, but because she's "ready to be commander in chief on Day One."

"A country is like a great big family where we have to work together," she said.

A noticeable contingent of men also showed up to support the first viable female candidate for president.

"I see a lot of wonderful women and a few good men out in the audience as well," said U.S. Rep. Allyson Schwartz, D-Pa., whose district includes Montgomery County and Northeast Philadelphia.

Schwartz said that Clinton wants her supporters to spend five hours a week promoting the senator's presidential candidacy to their friends and neighbors.

"The smartest, most capable, best person doesn't always win unless we make it happen," Schwartz said.

Clinton took questions from the crowd, and one student asked Clinton what she would do for the gay-lesbian-bisexual-and-transgendered community.

Ending job discrimination, putting "teeth" into hate-crime legislation and changing the military's "don't ask, don't tell" policy were among Clinton's solutions.

"You don't have to be straight to shoot straight," Clinton said, quoting Barry Goldwater, the late U.S. senator from Arizona.

At a meeting with the Daily News editorial board later in the afternoon, Clinton addressed a controversy involving her 1996 trip as first lady to a military base in Bosnia.

Clinton's assertion last week that her party had landed "under sniper fire," and run "with our heads down" to waiting vehicles was challenged in a Washington Post story showing a picture of Clinton and her daughter Chelsea calmly greeting an 8-year-old girl on the runway.

Clinton yesterday said she may have "misspoke" on some details, but recalled that there was a "threat of sniper fire" and that the greeting ceremony was moved from the tarmac, though she did briefly greet the girl.

You can read a more complete account of Clinton's explanation at www.attytood.com. *