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To: ldo79 who wrote (350343)	12/5/2007 6:27:52 PM
From: stan_hughes	Respond to of 436258

The people who want to freeze mortgage rates at teaser levels aren't the people holding the liens, that's for sure. Nobody in their right mind will lend money against residential RE in such an environment, drying up what's left of the available capital pool. Are Fannie & Freddie going to take down the entire book all by themselves? No effing way. Someone should email Paulson and explain to him that even handing out zero-interest loans much less extending teaser rates won't address a situation where somebody e.g. owes $500K against a house now worth $250K, where there's no incentive to make any payment at all. IMO this problem has no equitable solution other than to let the market sort it out and have the chips fall where they may -- government needs to butt out and let the players take their lumps