This is no homeowner rescue plan

"President Barack Obama has proposed a $275 billion plan intended to help as many as 9 million troubled borrowers refinance or restructure their loans. About $75 billion would be used to rescue homeowners by agreeing to pay lenders for altering troubled mortgages while reducing borrowers interest rates as low as 2 percent. "

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTX3K2Tvs5cs&refer=home

This is no homeowner bailout plan. It is another attempt by the administration to save the failing banks and to protect the assets of the banks. There are over 8 million homeowners underwater according to this bloomberg article. Another 5% decline in home prices will lead to another 2.2 million borrowers to sink below the surface. (source: first American Core Logic) This plans says nothing about banks having to write down any of their losses. The entire burden of the losses are resting on the backs of the homeowner. By the time the borrowers jump through all the hopes to see if they qualify they could be underwater by another 5 %. If the administration is going to saddle the homeowner with all the burden of this crisis then so be it. However, they need to stop with the PR stunts that have the facade of homeowner rescue when they really are just more bank baliout plans.

http://financialrealityrevisited.blogspot.com/2009/03/we-might-be-following-japan-10-year.html