Lately, the federal government has approved a $700 billion bailout of the financial sector, is considering another bailout of the auto industry, and discussing a stimulus plan.  Combine this with Barack Obama's affinity for socialism, and we are looking at massive amounts of government intervention. 

     Today I saw an article about Citigroup imposing a moratorium on most foreclosures and working with home owners to stay in their homes.  Besides working with customers who have already missed payments, they are trying to identify those who may have a problem in the future.  The bank will consider reducing principal and interest rates, and increasing the term of the loan.  Citigroup isn't doing this to be nice.  They realize how expensive it is to foreclose and that allowing customers to stay in their homes is better for their company than initiating foreclosures that will futher hurt their business.

     Citigroup's actions are a perfect example of the way the market should work.  The government didn't have to force them to rewrite mortgages.  Rather, they are acting in their own self-interest, which in turn is good not only for them, but also for home owners and the community.


http://news.yahoo.com/s/ap/20081111/ap_on_bi_ge/citigroup_homeowner_assistance