The Governator has got a good deal that will slow subprime mortgage defaults by enlisting four big lenders, including Countrywide.
Basically, it would extend the low introductory rates on adjustable loans to struggling homeowners for a sustainable period. FDIC chair Shelia Bair has been pushing the same line at the national level.
Hopefully Treasury man Henry Paulson will finally endorse these approaches. I don’t know what he’s waiting for.
Give the subprime borrowers a little breathing room. Help the economy. Give Goldilocks a hand.