Investors Back the Bailout, Cautiously

Bondholders aren't exactly thrilled, but the surrender of some interest income now may help protect their principal later

Many investors take for granted that government should intervene as little as possible in the workings of the financial markets. Still, they are inclined to see the Bush Administration's decision to spare hundreds of thousands of mortgage holders (BusinessWeek.com, 12/6/07) from higher rates as the best of several unpleasant alternatives.

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