Bye Bye Banks and Wall Street

[Morrigoon]

How many foreclosures could be averted if the government, instead of bailing out the banks, just told them to suck it up and retroactively re-set the last 5 years' or so worth of ARMs to their original interest rate (or that date's comparable fixed interest rate)? That would help keep homeowners with loans that have accelerated out of control (and nobody's asking the Fed about how fast they raised interest rates? Why?) from going into foreclosure, as long as they were able to make their original payment schedules.

Wouldn't that be a better answer than the government purchasing the loans and getting into a business it so clearly doesn't understand?