Senators Ask Fannie, Freddie to Freeze Foreclosures

Bloomberg says:

U.S. Senate Banking Committee members urged Fannie Mae and Freddie Mac, the mortgage companies placed under federal control this week, to freeze foreclosures on loans in their portfolios for at least 90 days.

There's another quote:

"This action would provide immediate relief to many homeowners'' and let the companies "turn these non-performing loans into performing assets to minimize losses,'' Senators Charles Schumer, Robert Menendez and other panel Democrats said today in a letter to the companies and the Federal Housing Finance Agency, which is overseeing them under the government conservatorship.

Umm.. No. If not collecting the EMI on a loan makes the loan into a "performing asset and minimizes losses" we would have to rewrite the history of banking, in fact while we're at it why don't you change the definition of all loans and just start calling it gifts - because thats what these supreme intellects propose.

I guess politicians all over the world are the same, and here was I thinking that only our Desi politicians had a monopoly on economic illiteracy.