[DCPatriot]

IMO, this...or some variation...is what's going to go down.

The government is going to step in and allow the Federal Housing Administration (FHA) to insure these outstanding mortgages up to a certain maximum balance...say $500K.

The mortgagee will refinance at a government set interest rate and presto....crisis averted.

It's not rocket science.

There's no way this won't happen...especially if the RATS control the Congress and the White House.

President Bush should initiate this right now.

[RockinRight]

I’m no fan of government intervention, but I’d rather see it done through FHA amending their guidelines than through what Hillary proposed with her billion-dollar giveaway. With FHA, a person is still expected to make their payment or they’ll still lose the house, Hillary is proposing just giving them money to keep it, big difference. With amended FHA guidelines you’re still giving the homeowner a chance to redeem their ability to pay their bills on time without a giveaway.

[Hydroshock]

He would be a foll to do it. And it never ceases to surprise me when many uber capitalists who decry regulation and government intervention are screaming for it now to save their bacon. I assure you it is not about protecting the home owners, if the banks were that concerned about them why do they not lower the rates on the arms or renegotiate the terms were more could afford the payment? They want their portfolios cover.

[econjack]

Man...do I hate this solution. It's like the old Savings and Loan crisis of years ago. Back then, the S&L's were offering very high savings rates to depositors. Most were not federally insured. The reason the S&L's could offer such high rates was because they were making high-risk loans, much like we are seeing in the mortgage market now. When they went belly-up, in comes the federal gov't with a bailout.

Sorry, people, high returns are associated with high risk. You put your money in the high return because you were greedy and didn't want the lower (safer) return. You gambled...you lost. Not my problem, and sure as Hell don't use my tax dollars to reward those companies or investors who played that game.

To me, the same logic applies here. Those mortgage companies and their investors made their bed, now let them sleep in it, even if it is out on the sidewalk.