The perception is that the Republicans are gonna get creamed this coming election, so they can’t be seen as insensitive, like Katrina. They found a band-aid and put it on a shotgun wound. The Sub-prime hole may stop bleading for a time, but the Alt_A wounds and option arm hits are about to bleed this market out. Now itll just take more time.
Besides, wont this make the NEXT reset even worse? If they havn’t been paying off capital, in 5 years the repayment part will be even higher.
