Optimism and anger over a mortgage bailout

Stocks rise

Global stocks got a boost early this week from President Bush’s plan to throw a rescue line to some Americans in danger of losing their homes to foreclosure. Bush on Friday proposed making Federal Housing Administration-insured refinancing available to more people with subprime mortgages to help them avoid defaulting on their loans.

Bush’s plan is “too little, too late” for investors who stand to lose big in the mortgage mess, said Al Yoon in Reuters.com. The meltdown of the market for risky, subprime loans to people with shaky credit could send 1.4 million loans into default, and Bush is talking about helping 80,000 more people refinance.

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