Matt McLennan

ECON 300

Mr. Wells

7 February 2012

Current Event Submission #6

While the current housing market is on the road to recovery, and certainly on the rise over the past year, there still are several issues regarding current mortgages and refinancing. Allan Sloan, a writer for Fortune magazine and dean of the business college at Columbia has proposed a solution: have Wall Street bail out Main Street. In this solution him and colleagues have developed, Sloan proposes that fixed-rate mortgages be given the opportunity to refinance and be backed by Fannie Mae and Freddie Mac. This idea would apply to those who are current on their payments but are currently paying high interest rates and could benefit from refinancing. The money saved by those paying these mortgages can be viewed...