Friday, November 30, 2007

Is pixie dust like original sin?

Treasury close to subprime aid plan: sources: Financial News - Yahoo! Finance:
WASHINGTON (Reuters) - The Treasury Department is finalizing a plan with mortgage industry leaders that will hold interest payments steady for many subprime borrowers facing higher rates and possible foreclosure.

"'Your purists are going to scream to high heaven that their contract is being altered, but your pragmatists are going to say, 'Do I want to reduce cash flow or see my Triple A-rated bond go south?' Pragmatists are going to do the deal,' Marta said.

He said it was 'hard to overstate the severity' of the effect of massive mortgage foreclosures on Wall Street, where exposure to subprime mortgages has been 'spread like pixie dust.'"

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