Paulson Mortgage Interest Rate Plan

[lamont]

http://www.bloomberg.com/apps/news?pid= ... refer=home

this smells bad to me...

the proposal they've got to do this only for new mortgages and not refi's seems really smelly. sounds like they're trying to favor new buyers entering the market while not doing anything for the people who are already in the market. one of the features of the bubble though is that everyone who could enter the market in the most marginal fashion had to enter it before it popped -- so we're stuck trying to 'grow' demand through population growth now....

if they allowed people to refi even if they were underwater to lower interest rates that might have a beneficial effect in preventing foreclosure and increasing consumer spending....

[rose-colored-coolaid]

[lamont]