The Associated Press reports that George W. Bush is scheduled to announce a plan to rip up the mortgage contracts of some homeowners and let them continue to pay the teaser rate for the next five years. Few details are known, but AP reports that the "rate freeze will apply to loans made to borrowers who did not miss any payments at the lower rate who took on loans between the start of 2005 and July 30 of 2007 and will cover loans that had been scheduled to rise to higher rates between January 1, 2008, and July 31, 2010."

Before analyzing the winners and losers under this plan, it's worth examining why Bush is doing this. As I posted previously, I think it's about his legacy. And in this case, it's about beating his father. In 1989, George H. W. Bush implemented a $200 billion government bailout of the Savings & Loan industry. The son aspires to bail out the subprime mortgage business without spending any government money.

There is one big winner and four big losers in W's plan.

Winners

• Frozen mortgage holders. The unknown number of mortgage holders who have been making their payments will be rewarded by getting their teaser rates extended. It's unclear how many of these people actually would be unable to pay the higher rate that they contracted to pay when they signed the mortgage. But these borrowers are getting a government-forced bailout from the investors in their mortgage contracts.