Rate Freeze Rewards Greedy, Critics Grumble

'What about those of us who played by the rules?'
By Sam Gale Rosen,  Newser Staff
Posted Dec 7, 2007 12:50 PM CST
Treasury Secretary Henry Paulson, left, accompanied by members of the mortgage industry, and Housing and Urban Development Secretary Alphonso Jackson, third from right, talks about mortgages during a...   (Associated Press)
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(Newser) – Many who played it conservative during the housing boom are miffed about the mortgage rate freeze, grumbling that it rewards the greedy and irresponsible, the Washington Post reports. "What about those of us who played by the rules?" asks one. "Can we get six months of free gasoline?" Politicians are trying to figure out how to deal with the looming backlash.

"I think we shouldn't be bailing out the homeowners that got greedy buying homes they couldn't afford," said one critic, noting that the government did not help those whose 401(k) plans tanked when the tech bubble burst. The debate is likely to intensify because some of the hardest-hit states—including Florida, Michigan, and Ohio—are also key primary states.