Though details are precious few, the Wall Street Journal, and others report on a soon to be announced FDIC/Treasury initiative to aid some 3 Million homeowners in danger of losing their homes. From the WSJ:
Estimated to cost between $40 billion and $50 billion, the plan would have the government agree to share a portion of any losses on a modified mortgage offered by lenders.
Funding for the plan could potentially come out of the $700 billion financial-rescue program authorized by Congress earlier this month. The plan, which was previewed during Congressional testimony last week, would represent one of the most aggressive and sweeping moves to address the nation's foreclosure mess, among the last elements of the crisis yet to be addressed by concerted government intervention.
Though we don't have near enough detail to make any judgment on this program, from a philosphical standpoint, if we're going to be
raping and pillaging the taxpayers in the bailing out business (which we clearly are) some of the spoils this assistance has to find its way to the homeowner level.
So, yeah, it's a good thing. But here's the thing: If this is not structured very carefuly, giving homeowners an incentive to NOT take the help, it will be shot-through with unintended consequences and be an absolute disaster. We need details.