Deal in the Works To Freeze Rates on Subprime Loans
Washington Post Staff Writer
Saturday, December 1, 2007; Page A01
- Wall Street
- biggest banks,
- mortgage investors,
- consumer groups
and then, finally, those about to lose their homes.
But (and this is important, may be a deal-breaker),
- not until they decide which homeowners would qualify for the help (possibly sifting out all the inconvenient poor who were suckered) and
- how much they would have to pay to refinance or freeze their loans (another chance to pass lucrative and ludicrous costs into the profit bucket).
The world out there has packaged and accepted a gazillion mortgages at 4-5% and survived and profited. Suddenly, 7-8% is not enough and the greed factor behind this whole international debacle is likely to sue because the original promise that’s bringing on financial collapse isn’t going to happen.
This is announced as as ‘sticking point’ in negotiations. We are supposed to see that these pigs at the trough, who brought us to the edge of collapse, actually have a point.
Add to that the indignity and inequity of requiring the victims of this usury to pay additional fees in order to enjoy the pleasure and satisfaction of continuing to pay a 40% premium to the mafia who cooked this whole scheme up.
Treasury Secretary Hank Paulson and Housing and Urban Development Secretary Alphonso Jackson actually try to palm off this self-serving solution as help for the sub-prime victims. Sheila Bair, the chairwoman of the FDIC advocated a permanent freeze in rates for financially strapped homeowners with subprime loans. No extra charges, no hidden fees, no deciding who and if–a system-wide freeze.
But then that would only help the helpless.
Paulson and Jackson are more interested in another helping.