Money | subprime mortgages Paulson Raps Mortgage Rescue Plans Says taxpayers shouldn't finance 'bailouts' for reckless lenders and borrowers By Jim O'Neill Posted Feb 28, 2008 7:06 AM CST Copied Treasury Secretary Henry Paulson gives his assessment of the American economy while testifying on Capitol Hill in Washington, Wednesday, Feb. 13, 2008, before the House Budget Committee. (AP Photo/J. Scott Applewhite) (Associated Press) Homeowners burned by the subprime mortgage meltdown shouldn't be looking to the federal government for help, Treasury Secretary Henry Paulson told the Wall Street Journal yesterday. Facing down mounting congressional pressure for stronger measures to stem an epidemic of foreclosures, Paulson dismissed proposals on the table as "bailouts" for reckless lenders, investors and speculators. "I don't think I've seen any scenario where the American taxpayer needs to be stepping in with more taxpayer dollars," Paulson said. Despite signs that the crisis is worsening, with as many as two million Americans likely to face foreclosure this year, Paulson says he sees no need to go beyond an administration plan that focuses on lenders working toward a solution with struggling borrowers. Read These Next Beyonce leaves national anthem unfinished. A space capsule carrying ashes of 160 people crashed in the ocean. A lesson in minding your own business ... at 30,000 feet. The death toll in the Texas floods has risen to 27, including 9 kids. Report an error