President Bush plan to freeze interest rates for five years

http://biz.yahoo.com/ap/071206/mortgage_crisis.html

"We should not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could not afford," he said.

Then, who ARE the people he is supposed to be helping? In my estimation, anyone who took an ARM should be defined as "reckless" since they obviously didn't have enough income at the time of signing the loan docs to afford a fixed rate mortgage. Where were those folks magically supposed to get more income a few years after signing an ARM loan? ANSWER: Those people believed their home would appreciate, allowing them to refinance. If that isn't "reckless", I don't know what is.

Nobody should be helped.

Foreclosures are NEEDED to bring home prices down to reality so they are actually AFFORDABLE. Of course, since it isn't widely understood that AFFORDABLE homes are CHEAPER homes, the crisis will be worse than without government intervention. So-called AFFORDABLE home initiatives do nothing but INCREASE the PRICE of homes. Amazing that it still isn't obvious to everyone that higher home prices do not increase real wealth. If it were true that higher home prices increased wealth, we wouldn't have to orchestrate a bailout. The free market was not allowed to function when these high risk loans were pawned off to investors and now it will not be allowed to function when we really need it to clean up the mess.