The Bush Administration and the nation’s biggest banks are nearing an agreement to ease the mortgage crisis. Two million mortgages with initial low teaser rates are scheduled to reset to much higher levels by the end of 2008. The bailout plan is aimed at preventing the wave of foreclosures anticipated once those rates go higher. And ABC’s Betsy Stark is here. Hey, Betsy.
George, the administration is still working with the mortgage industry to hammer out the final details of this rescue plan. But sources on both sides tell us they are confident a deal will be done as soon as next week.
The plan is a sign of just how worried the administration has become about the damage the housing slump is having on the economy. -- I’ve said for some time that housing is the biggest risk that we have on our economy, and so we need to do everything we can to avoid foreclosures, not only for those who are losing their homes, but for the good of the communities and for the overall economy.
Brokered by the government, the deal is expected to include the biggest players in the mortgage industry, including Citibank, Countrywide, and Wells Fargo. It’s designed to slow foreclosures by freezing interest rates on some subprime mortgages before they adjust to levels homeowners cannot afford. But not all subprime borrowers can expect relief. Homeowners unable to afford their payments even before their rates go up will probably be excluded.
So will homeowners who are able to afford higher payments even if it’s a struggle. And while financial markets may be reassured by the government’s willingness to step in, others are bound to criticize it for rewarding bad choices. “There’s always a danger when the government comes in and tries to bail out either borrowers or lenders because it…it can encourage that bad behavior again in the future.
The Treasury Secretary says this is not a bailout; no government money is changing hands. The main mission is a coordinated attempt to slow foreclosures. Inevitably, however, there will be winners and losers and questions of fairness because millions of subprime borrowers will probably not benefit from this plan, George. So a lot of people watching very closely for those details next week, Betsy. (You bet.) Thanks.
※ bail out 1. 보석금을 지불하고 ~ 을 보석시키다 (to pay money to a court so that someone can be released from prison until their trial) ex. He bailed his son out. 그는 보석금을 내고 아들을 빼내왔다 . 2. < 회사 사람 등을 > ( 돈을 지원하여 어려움에서 ) 구출하다 ( to help a person or organization that is in difficulty, usually by giving or lending them money) ex. bail a person out of financial trouble 을 재정 곤란에서 구해내다 3. to jump out of an aircraft with a parachute because the aircraft is going to have an accident ex. The plane's engine failed and the pilot was forced to bail out. 4. bailout ( 낙하산에 의한 ) 비상 탈출 , ( 경제적인 ) 구제 조치 , ( 정부 금융 기관에 의한 ) 구제 금융 , 긴급 금융 지원 ex. Three years of huge losses forced the bank to seek a government bailout.
near an agreement : 합의점에 접근하다 ease :〔심신의 괴로움·긴장 따위〕 를 완화하다,〔남〕을 안심시키다. * ease a person's anxiety 남의 걱정을 완화시키다 mortgage : 저당 , 주택 융자 , 모기지 , ~ 을 저 당하다 ex. hold a mortgage on a person's house 의 집을 저당잡다 / ex. The estate is mortgaged. 그 대지는 저당이 되어 있다 . * take out a mortgage 모기지융자 받다 teaser rate : 미끼 금리 * tease (짓궂게) 괴롭히다, 곯리다, 곯리는 사람 ex. I didn't mean it: I was only teasing. / ex. John's always teasing me about my accent. / ex. He's just a tease. Ignore him. be scheduled to ~ : ~할 예정이다, ~하기로 예정되어 있 다. bailout : ( 낙하산에 의한 ) 비상 탈출 , ( 경제 적인 ) 구제 조치 , ( 정부 금융 기관에 의한 ) 구제 금융 , 긴급 금융 지원 ex. Three years of huge losses forced the bank to seek a government bailout. * bail 보석 , 보석금 , ( 돈을 지원하여 어려움에서 ) 구출하다 * on bail : 보석금을 내고 , 보석으로 ex. He was allowed out on bail. 그는 보석금을 내고 출감을 허가받았다 be aimed at ~ : ~ 을 겨냥한 것이다 ex. The regulations are aimed at the prevention of accidents at work. ex. The book is aimed at people with no specialized knowledge. wave of ~ : ~의 물결/ a sudden increase in a particular type of behaviour or activity, especially one that is unpleasant or not welcome ex. A fresh wave of selling sent technology stocks even lower. / ex. a frightening wave of crime and violence foreclose : < 저당권 설정자에게 > 저당 물을 찾아갈 권리를 잃게 하다 , vt.vi. < 저당물을 > 유질 ( 流質 ) 처분 하다 ex. The bank was threatening to foreclose on his mortgage. * foreclosure : 담보물을 찾을 권리의 상실 , 유질 처분 hammer out : 고심해서[노력해서] 만들어내 다, 고안하다 (= iron out = thrash out ) ex. hammer out an agreement 고심해서 합의에 이르다 ex. They're meeting in Berlin to iron out the final details of the contract. ex. Both sides hope to thrash out an agreement by next week. broker : 브로커 , 중개인 , ~ 의 중개를 하다 , 브로커 업무를 행하다 / If a country or government brokers an agreement, a ceasefire, or a round of talks, they try to negotiate or arrange it. ex. The United Nations brokered a peace in Mogadishu at the end of March. be designed to ~ : ~ 하도록 고안되다 ex. Motorcycle masks are designed to screen out pollutants. 오토바이 마스크는 오염물질을 걸러내도록 만들어 졌다 . relief : ( 고통 걱정 곤궁 등의 ) 제거 , 경감 , 안 심 , ( 빈민·난민 등의 ) 구제 , 구원 ex. It was a great relief for me to hear that. 그 말을 듣고 안심했다 . ex. The patients experienced no relief from their symptoms. * breathe a sigh of relief : We breathed a sigh of relief when Gustav went home. 안도의 한숨을 쉬었다 . * relieve : < 고통·고민·불안 등을 > 누그러뜨리다 , 경감 [ 완화 ] 시키다 (mitigate), < 남을 > ( 곤궁·탄압 등으로 부터 ) 해방시키다 , 구제하다 ex. relieve a person of one's responsibility 책임을 면해 주다 . struggle : 발버둥치다 , 몸부림치다 , 애쓰 다 , 허덕이다 , (~ 과 ) 맞붙다 , 분투하다 , 싸움 , 투쟁 , 힘든 일 * struggle to do something: ex. We have to struggle to win our freedom. / * struggle with: ex. They've had to struggle with the painful process of modernization. / * struggle for: ex. Andy was coughing and struggling for breath. / * struggle into/out of etc: ex. She struggled into her tight jacket. / * struggle against: ex. people struggling against oppression. ex. It was a struggle to get up the hill in the snow. 눈덮힌 언 덕을 오르기는 너무 힘들었다 reassure : 안심시키다 * The doctor reassured the patient about his disease. 의사는 병세를 설 명하여 환자를 안심시켰다 step in : to become involved in a discussion or argument, especially in order to make it stop ex. It is time for the government to step in. * step out : MAINLY AMERICAN to leave a place for a short time ex. I'm sorry, Karen's just stepped out for a second. * step up : to increase something ex. The president has stepped up the pressure on the groups to come to an agreement. be bound to ~ : 반드시 ~하다, ~할 운명이다 ex. His comments are bound to add fuel to the debate. reward : 현상금 , 사례금 , 보수 , 보상 , 상 , 보답하다 , 보상하다 ex. The teacher rewarded Tom for his diligence. 선생님은 톰에게 부지 런하다고 상을 주셨다 . * rewarding : 보람이 있는 / giving you satisfaction, pleasure, or profit ex. Do you find your work rewarding? / ex. Our trip to the Yukon was a very rewarding experience. change hands : 1. 소유주가 바뀌다(=switch hands) (if something changes hands, it gets a new owner) 2. 돈이 오가다 (if money changes hands, one person gives it to another as payment, sometimes in a dishonest way) ex. The house has changed hands several times in the last few years. ex. No money actually changed hands. coordinate : 통합하다, 조정하다 / to organize the different parts of a job or plan so that the people involved work together effectively ex. A senior embassy official is coordinating efforts to free the captives. inevitable : 피할 수 없는 , 불가피한 winner : 승리자, 성공한 것(something that is very popular or successful), 혜택을 보는 사람 ex. Her latest book looks like being another winner. ex. There are clear winners when a dam is built. Farmers get irrigation water, businesses get electricity. loser : 실패자, 패자, 전연 쓸모없는 것 [ 사람 ], 손해를 보는 사람 * a good/bad loser : someone who behaves well/badly when they have lost