Just reading up from CQ now on the provisions contained in the agreement. Here is an unintentionally humorous excerpt about one provision whose future is uncertain, which would allow bankruptcy judges to alter to terms of sub-prime mortgages:

The lending industry argues that allowing judges to reconsider the terms of home loans could end up raising interest rates for borrowers in general, as banks would raise rates to offset the risk that a loan could be changed in the future. But Charles E. Schumer, D-N.Y., chairman of the Joint Economic Committee, said the more limited bankruptcy language should alleviate those concerns, because it would not allow any changes to future loans.

Am I missing something here? Even if the judges cannot alter the terms of my new loan, couldn’t the interest rate rise to offset the risk of alterations to yesterday’s bad loans? Won’t that hurt the housing market, too?