The freeze is on

Faced with a mortgage crisis that some say will outstrip the savings and loan crisis of the 80s, President George W. Bush is set to announce a voluntary agreement with major mortgage firms to freeze rates for five years for troubled borrowers.

Others say the President’s actions are too little too late and some are proposing increased government regulation and bailouts to try and save the day.

As foreclosures mount, the crisis will be a major campaign issue in 2008.

Bush Wins Agreement To Freeze Mortgages – President Bush will announce this afternoon an agreement with major mortgage firms to freeze interest rates for five years for financially troubled homeowners — a plan advocates say will help forestall a major foreclosure crisis but some conservatives say amounts to a bailout of people who made bad… [Washington Post Political News]