A subprime fix?
President Bush is unveiling a plan to freeze interest rates on some subprime mortgages for five years to stave off a wave of foreclosures. This looks like a "promising" fix, said The Washington Post. Plenty of people will still be "left out
What happened
President Bush is expected on Thursday to unveil a five-year freeze on interest rates for some subprime mortgages. (Financial Times via MSNBC) Lenders agreed to the plan, which was crafted by Treasury Secretary Henry Paulson to ease a coming wave of foreclosures threatening to tip the economy into recession. Democrats said the plan didn't go far enough. (The New York Times, free registration)
What the commentators said
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Paulson appears to have come up with a “promising” fix, said The Washington Post in an editorial (free registration). “This is not a total bailout.” Homeowners will have to keep up with their payments, but by locking in low “teaser rates” for five years the plan will prevent higher rates from kicking in and “socking borrowers” with monthly payments they can’t afford.
Plenty of “people are still left out in the cold” under Paulson’s plan, said Liz Moyer in Forbes.com, and that’s just one reason many homeowners, investors, and others will find fault with it. The fix would only help those still current on their payments who won’t be able to afford the higher rates kicking in come January. Those who can pay won’t benefit.
The politicians are stepping onto risky ground here, said syndicated columnist Froma Harrop in The Seattle Times. “The mortgage free-for-all set off a plague of bad judgments by lenders, borrowers, investors and Wall Street alike.” But Democrats mulling alternative plans should keep in mind that any lifeline that looks like it is rescuing “the McMansion crowd” from their own “folly” is likely to “put Americans in a sour mood.”
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
What are the different types of nuclear weapons?
The Explainer Speculation mounts that post-war taboo on nuclear weapons could soon be shattered by use of 'battlefield' missiles
-
Floral afternoon teas to enjoy during the Chelsea Flower Show
The Week Recommends These are the prettiest spots in the city to savour a traditional treat
-
How to plan a trip along the Mississippi River
The Week Recommends See this vital waterway from the Great River Road
-
The JFK files: the truth at last?
In The Spotlight More than 64,000 previously classified documents relating the 1963 assassination of John F. Kennedy have been released by the Trump administration
-
'Seriously, not literally': how should the world take Donald Trump?
Today's big question White House rhetoric and reality look likely to become increasingly blurred
-
Will Trump's 'madman' strategy pay off?
Today's Big Question Incoming US president likes to seem unpredictable but, this time round, world leaders could be wise to his playbook
-
Democrats vs. Republicans: who are the billionaires backing?
The Explainer Younger tech titans join 'boys' club throwing money and support' behind President Trump, while older plutocrats quietly rebuke new administration
-
US election: where things stand with one week to go
The Explainer Harris' lead in the polls has been narrowing in Trump's favour, but her campaign remains 'cautiously optimistic'
-
Is Trump okay?
Today's Big Question Former president's mental fitness and alleged cognitive decline firmly back in the spotlight after 'bizarre' town hall event
-
The life and times of Kamala Harris
The Explainer The vice-president is narrowly leading the race to become the next US president. How did she get to where she is now?
-
Will 'weirdly civil' VP debate move dial in US election?
Today's Big Question 'Diametrically opposed' candidates showed 'a lot of commonality' on some issues, but offered competing visions for America's future and democracy