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User Info	Paulsen Works With Industry on Loan Plan; entered at 2007-12-01 10:34:24
Paulmc0307 Posts: 446 Registered: 2007-09-16 los angeles	Mtgspy, Take a look at the following savvy analysis by Lance Lewis. I agree that this freeze won't work, just from a pure economic point of view. "Bailout proposal from Paulson of somehow freezing adjustable rate mortgages in order to “prevent” foreclosures, which will never work given that lenders have all structured their businesses around these instruments already. You can’t just change the rules in order to rob Peter (the lenders) to pay Paul (the homeowners), because Peter has counterparties that depend on him that will also suffer after he is robbed, which will cause others within the financial system to suffer and so on. This fact is another reason why all roads continue to lead to the same place in my mind (i.e. - the Fed will be forced to inflate and basically end up robbing everybody at the same time through inflation). Incidentally, whatever happened to that Super-SIV bailout? Oh yea, that sort of died on the vine too. This latest bailout scheme from Paulson will meet a similar fate in my view." 2007-12-01 10:34:24