US Treasury Secretary Paulson: U.S. home foreclosures to stay high

Looks like the government is now trying to blame the little guy for the housing problem not artificially low interest and absolutely NO regulation of the mortgage market. Those counting on a government bailout See below:

Tuesday July 8, 3:27 pm ET ARLINGTON, Va (Reuters) - U.S. Treasury Secretary Henry Paulson said on Tuesday that home foreclosure starts may hit 2.5 million this year, many of them the borrowers' own fault for taking out loans they couldn't afford.

"There is little public policy-makers can, or should, do to compensate for untenable financial decisions," Paulson told a forum on mortgage lending to low and medium-income homeowners.

He said flatter sales of existing homes in recent months implied some stabilizing in home-buying demand but warned foreclosures stemming from a housing correction that began in 2006 likely will continue for some time.

Paulson said that Treasury is continuing its efforts to assist "preventable foreclosures," chiefly among low- and moderate-income people who fell behind on payments when their variable-rate loans reset at higher rates.

Since last July, about 1.7 million homeowners have completed loan workouts that have allowed them to stay in their homes, Paulson said.