The government plan, to allow people to "keep" their home by extending the "teaser" rate is being met with derision by some on Wall Street, especially those of the bearish persuasion. The "spin" by the government is that losing a home is an emotional experience, and gosh darn it, Washington and the bankers are helping the homeowners out. And it makes Wall Street seethe.
Why the antipathy for this plan?
Because it prevents the banks and lending institutions from foreclosing on the homeowner and owning the real estate. So the plan, the bears say "saves" the banks from collapse. So Wall Street gets all sanctimonious. Why? Because now their bets against the banks are going against them. Wall Street could care less if you lose your home. But they care deeply, when they start losing money. And now they are in a panic to cover their wayward bets.
Gov. Schwarzenegger first applied the muscle to the mortgage companies in California. But the smug shorts didn't blink. Now the Treasury is working with all the major lenders to implement a plan similar to his.
Ever see the movie "Twins?" Remember the first rules of a crisis situation? You negotiate first, and then you attack. Schwarzenegger negotiated, and then Washington attacked. They followed the script and the shorts didn't.
And the bears, forgot the first rule of a panic.
If you panic, panic first!