Don't believe it.
Just like the "Super SIV", "Mission Accomplished" and Bush's "Social Security Reform", this bank-failure-avoidance-scheme is going to be just another epic failure of this incompetent and corrupt administration.
There will be lawsuits filed as early as tomorrow against such a stupid plan (just think if you took a toxic loan out the day before the window started, or a bondholder who expected contracts to be worth something), and some hilarious unintended consequences - namely EVERY SINGLE HOMEDEBTOR WITH AN ARM SHOULD STOP MAKING PAYMENTS TODAY.
Plus many of these homedebtors so graciously "helped" are going to walk away anyway - because the value of their home is plummeting so hard and so fast it's better to turn in the keys and tell the bank to F off.
Bush to outline 5-year rate freeze plan: sources
WASHINGTON (Reuters) - President George W. Bush is expected to outline on Thursday a plan to freeze mortgage rates for five years for many U.S. homeowners facing sharp increases in their monthly payments, industry sources said on Wednesday.
Final details of the plan are still being worked out after a trade group that represents large mortgage investors presented its framework for implementing a broad rate freeze to the Treasury Department late on Tuesday, the sources said.
The sources, who are familiar with details of the trade group's pitch, said the plan envisions covering subprime loans taken out between January 1, 2005, through the end of this past July, with rates that are due to reset over the coming 2-1/2 years.
An estimated 1.8 million U.S. homeowners who took out loans with low teaser rates face pricey loan resets next year alone, the Federal Reserve has said. Officials fear half a million borrowers risk losing their homes.