What's the best way to stabilize plunging home prices? Treasury Secretary Hank Paulson andrnhis staff are considering plans to push mortgage rates down to 4.5% in hopes of bringing buyers back into the mori -bund market. But many Democrats-in Congress and on President-elect Barack Obama's team-seem more set on pressing lenders to renegotiate troubled mortgages. That tack, championed by Federal Deposit Insurance Corp. head Sheila Bair, is aimed at trimmingrnforeclosures and ending fire sales.rnThe differing approaches have led to a standoff. The government transition also makes it less likely that much will happen before Obama takes over in late January. That's worrisome: Without reducing foreclosures and ending the slide in home prices, it will be nearly impossible to stabilize banks and lessen the depth of the recession. And sharply rising unemployment has added new urgency: Last spring, Rod Dubitsky, Credit Suisse's head of research for asset-backed securities, projected 6.5 million foreclosures.
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