Plan to rescue Borrowers is no Solution for All

If lenders temporarily freeze low introductory interest rates on home loans made to risky borrowers before the soar, it would be a modest fix for the country's fractured housing market. The problems are so far reaching, according to analysts, that an emerging Bush administration backed plan, nicknamed "teaser freezer" by one economist, won't spare many borrowers, or bankers from the pain of escalating foreclosures and defaults. One economist says the plan is better than doing nothing but he added it is not necessarily going to make a big dent in the foreclosure problem that is facing us because thousands of borrowers still might not be able to make their monthly payments. As a result, the plan is unlikely to quell worries that the housing market's ongoing problems will drag the economy into a recession.