Just one day after the builders decided to cut off their PAC money ($1.6 million in bribes per year) to Congress, bankers from Credit Suisse want to repackage home loans and let the Uncle Sam guarantee them. A bit from today's WSJ:
Just a few months ago, such proposals would have been considered far-fetched, but these and other unorthodox ideas are gaining credibility. This week, the government announced the latest idea, a mortgage-industry plan that would give seriously delinquent borrowers extra time to avoid foreclosure.
So far the government's moves haven't propped up the sagging housing market or thawed frozen credit markets. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are expected to face questions on these issues today from lawmakers at a Senate Banking Committee hearing.