No. of Recommendations: 5
Treasury Secretary Henry Paulson and federal banking regulators are working out the details of a plan to extend lower, introductory interest rates on home loans before they reset at higher levels.

Now this, of course, is a great solution. Extent teaser rates and put off the day of reckoning.

Yes, but depending who pays for this, there may or may not be a moral hazard. If the Treasury is subsidizing this, then the American taxpayer is , and that's wrong. If the note holders agree to allow the renegotiation in a way that the cost of the lower interest rate comes out of their pockets, then fine.
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