i honestly think this is just a show. “good faith” if you want, but a show; countrywide for instance. by showing “good faith” and confidence in their ability to rewrite loan terms, they present a confidence in their business solvency.
countrywide and gmac if not the others are facing tough times, possible bankruptcy. they lose nothing by agreeing to this, they gain confidence in their operations, good will. depositors will think twice about closing their accounts, they might gain favorable treatment by government loans/bailout, same for private loans/bailout.
arnold gains favor for being sympathetic to the people, for accomplishing a compromise with business, for not using tax dollars for aid and for not terminating anyone in the process. if the plan fails, he tried, it’s not his fault, it was too big of a problem to solve. but he tried.
