Mortgage Rate Freeze
You can’t swing a dead cat on the Internet today without hitting a mainstream media article or blog post about the “subprime rate freeze plan”. I’ve read dozens of posts, and as expected, opinions vary wildly.
It’s a gem of a post that sums up my thoughts remarkably well.
This subprime rate freeze plan will not fix the problems we face in the housing downturn cycle or the crisis to the credit markets & secondary mortgage markets that happened as a result. It may install some confidence for a while though and it may help some struggling borrowers, but it won’t nearly be enough!
But really, read the whole thing.
Good plan? Bad plan? To be honest, I don’t know. Part of me says the government needs to step aside and let the market do what a market does — find its equilibrium. On the other hand, some people need help. Did they “ask for it”? Sure, some did. But many others did not.
It’s a mess, that’s for sure.
[tags]subprime, mortgage bailout, mortgage rate freeze plan[/tags]