There is a report at The Associated Press stating that the government is considering a plan that would help around 3 million homeowners avoid foreclosure.

Final deal had not been reached as of yet (Wednesday afternoon) and negotiations could still fall apart. Government agencies have been contemplating using around $50 billion from the recently passed bailout of the financial industry to guarantee approximately $500 billion in mortgages.

The plan could include loan modifications that would lower interest rates for a five-year period.

The plan aims to limit damages from the U.S. housing recession, which has had deep effects on global credit markets.

Would the rest of the world follow?

In particular England.

What do you think of this plan? Should Europe and England adopt a similar plan?

4 comments

  1. Anonymous  

    October 30, 2008 at 11:53 AM

    More bailouts, lets just keep rewarding bad decisions! It's ok, people have only been predicting this for what, five years?

    A roof over your head is essential for living in most places, but bailing out people who bought 5 bedroom McMansions is just as bad as bailing out bankers.

    Why not focus on ensuring a swift recovery from an unavoidable recession by improving human capital instead?

  2. Anonymous  

    November 1, 2008 at 12:51 AM

    There must be some guidelines that will determine who exactly benefits from the mortgage bailouts?

  3. Anonymous  

    November 1, 2008 at 2:05 AM

    "Why not focus on ensuring a swift recovery from an unavoidable recession by improving human capital instead?"

    Good ideas. Please expand if you can.

  4. Anonymous  

    November 1, 2008 at 2:06 AM

    "There must be some guidelines that will determine who exactly benefits from the mortgage bailouts?"

    I agree with that. For instance if someone has more than one property, only one should be allowed.

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