[heroineworshipper]

With rate freezes in already effect on ARMs in Calif*, it makes you wonder if the executive branch is the new federal reserve. Fiat constitution, U might say.

[mefistofeles]

The rate freeze is actually a "voluntary" loan restructuring program done in conjunction with the loan industry. For better worse it only affects a small number of ARM's that must meet certain conditions.

I think six other states had raised $900 million for some sort ARM restructuring program. To date I think they've only helped 6 people its pathetic.

Read ML Implode for more info

[IanC]

My understanding is that individual holders of crappy, subprime loans are only a very small part of the bigger problems. The bulk of the bad debt was made into funds which institutions and individuals all over the world invested in. These funds are contaminated by the bad mortgage debt and essentially worthless because no one wants them.

The bailout for individuals will look good on the news, but the major banks, municipal investment funds and brokerages going under is what will really hurt the economy,

Ian
Portland, OR.

[heroineworshipper]

Well, looks like rate freezes R about to become national. Exactly how they're doing it is not being disclosed. It seems to involve printing money - I mean "buying back loans" to keep the ARM rates suppressed, denying investors the right to sue over reneging on loan agreements, and then reneging on the loan agreements. Why don't they freeze credit cards too?