Paulson hints at no bailout for fannie or freddie

Paulson had an equally dreary report for homeowners worried about tumbling home prices.

“Many of today's unusually high number of foreclosures are not preventable,” he said. “Due to the lax credit and underwriting standards of the past years, some people took out mortgages they can't possibly afford, and they will lose their homes.”

Homeowners should not anticipate a government bail-out, said Paulson.

“These borrowers can and should be living up to their mortgage commitment—government intervention here would be inappropriate.”

Paulson extended the same advice to large financial institutions. Banks should not expect to be bailed-out by government, despite intervention by the Federal Reserve in the near-collapse of Bear Stearns in March.