President Bush announced on Thursday a plan to freeze interest rates for five years for hundreds of thousands of strapped homeowners whose mortgages are scheduled to rise in the coming months.
Seeking to counter criticism he is violating his free-market principles, Bush said the private-sector plan does not represent the imposition of a government solution to the mortgage crisis. "We should not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could not afford," he said.
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I listen to the Paulson/Hillary sub-prime bailout. No one seems to be talking about the purchasers [investors] of these securitized bonds that are to derive income when these underlying mortgages reset. Won’t they be the losers if these underlying adjustable mortgages are frozen for 5 years?
-- Rich O.
You're making an interesting point Rich - and it's one that CNBC's Jane Wells also made on "Fast Money" a little earlier in the week. Below is a link to that post.
> Read More: "The Teaser Freezer Deal"
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Seems like an excellent topic for our Fast Money Reader Poll: What do you think. Will the "Teaser-Freezer" initiative really help homeowners at risk of foreclosure? Answer the poll question now or send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap!
