It seems our good old government is setting a course to bail out those who weren’t responsible enough to take care of their own financial house.

Treasury Secretary Henry Paulson said today that the Department is “aggressively pursuing a comprehensive plan” to aid as many homeowners as possible. He went on to offer fresh details about a nearly complete government and private-sector effort to stem a huge number of foreclosures next year.

“We are leading the industry to develop a systemic means of efficiently moving able borrowers into sustainable mortgages,” Mr. Paulson said today in a speech to the Office of Thrift Supervision’s housing forum.

OK, so in not so many words, the treasury department is going to bail out those who thought taking on an adjustable rate mortgage seemed like a great way to get into a house they couldn’t afford, and now want help getting out of, but don’t want to go back to living in an apartment and resorting to eating Ramen noodles again.

I digress.

Mr. Paulson also said the Treasury is increasing efforts to reach out to borrowers struggling with their mortgages and also working to increase the availability of affordable mortgages. The secretary continued by saying that “The number of subprime mortgage resets is going to increase dramatically next year, and we need to make sure the capacity is there to handle it.”

And so, what’s in it for those of us who bit the bullet and are making the full payment on a fixed-rate loan?

This latest push to freeze the rates on these ARM’s seems typical of the widespread notion of fairness and equality. No one can fail (a la: no child left behind) and we must afford the same opportunity to those who are not willing to work as those who work their butts off (a la: the abuse of the welfare system in these United States).

If it seems as though I’m a bit jaded at this notion, I AM.

Personally, I like Frugal’s idea that we fixed-rate homeowners should get a credit or points to pay down the interest rate that we already locked in.

Sounds good to me.

Leave comments below. Subscribe to Comments