Can you stop this Flood... Mr.Paulson?

There's gossip around that Hank Paulson's Treasury shall come up with a plan to save all those 1.5 million home owners who face painful payment resets on around 400 billion dollars of mortgages expected through the end of 2007 and 2008.

All the major lenders are supposed to be involved, and the plan is to freeze the ARM loans for a couple of years.

Of course not everyone shall be rescued. Apparently, it's the "Middle tier" who are still solvent that shall be rescued. As for those speculators, and those who weren't even supposed to be in those bloated homes, if not for the tricks played by the lenders and appraisers, shall be left to fend for themselves.

Mr.Paulson seems all out to save as much as he can before the mortgage crisis spreads virally through the economy. But tell me Mr.Paulson, will the rate freeze save anything? will consumers still spend in spite of those stop gap measures? will it really stop a recession? It's true that it will perhaps delay the pain, but someone has to suck up the losses... and it should not be the federal government with the taxpayers money.

Maybe this great free market economy should be allowed to correct itself, like it always has through periods of "irrational exuberance" as Mr.Greenspan would say.