Joining the Fed's effort to meddle with the free market is Treasury Secretary Hank Paulson
and his plan to rescue the housing market. The essence of his plan is to convince the
owners of sub- prime adjustable mortgage debt to freeze the interest rate resets for a
period of about five years, a proposal which is supposedly only to be available to those
who will become indigent once the higher rates become effective. Ostensibly, this will
ameliorate the anticipated surge in mortgage foreclosures and prevent a further decline in
home prices.

The first reason to eschew Mr. Paulson's plan is that his deal, if successful, may serve to
protract the issues with housing for years to come. Offering to freeze the rate for only
those who cannot afford higher rates is silly and we will certainly see claims of indigence
from many who can actually pay. Unfair speculation on my part?... read more "Paulson vs The Free Market" at GreenFaucet.com