Treasury Secretary Henry Paulson and federal banking regulators are working out the details of a plan to extend lower, introductory interest rates on home loans before they reset at higher levels. Paulson and the regulators met Thursday morning with loan servicing companies — which collect and distribute loan payments — and other industry executives. A formal agreement had not yet been announced as of Thursday, but could be unveiled early next month.(NY Times, Friday)
Can government meddling save the day? I think not.
FEE Timely Classic
Old Banking Myths by Hans F. Sennholz