If you're one of the millions of subprime borrowers who were sweating an upcoming rate reset, you're about to get lucky. Citigroup, Countrywide, Wells Fargo and others are close to agreement on a plan that would freeze the interest rates for a set period of time. It's unclear how long the freeze would last but it could be several years, up to seven. Now that's a break! This is a somewhat shocking move. And cries of private sector personal moral hazard will likely be heard. Some would argue that people do not need additional incentives to take on more debt than they can handle. This will likely ease the credit crunch and perhaps re-liquefy CDOs to a certain extent. But I wouldn't say this is the end of the meltdown.  

For some background:
- here's an AP article

Related articles:
- Is the subprime meltdown really contained?
- Citigroup bets big on subprime market

Read more on: subprime l Citigroup l Countrywide l Wells Fargo