Treasury Secretary Paulson thinks state and local governments should be permitted to issue tax-exempt bonds that would fund programs to prevent foreclosures.

Analysts caution Treasury’s plans to help subprime borrowers will not completely save banks from home loan pain. “If you postpone the inevitable, you’ll just draw out the pain for a longer period of time,” Nandu Narayanan, a portfolio manager at hedge fund Trident Investment Management, told Reuters.

Others, reacting to an expectation on Friday that Treasury is seeking to freeze mortgage rates, said it seems unfair to bail people out.

What are your thoughts on the government’s effort to try and stem foreclosures stemming from resets on subprime mortgages?

Google Inc. has confirmed plans to bid for the airwaves that will soon be given up by television broadcasters. The frequencies, known as the 700 MHz band, will be put up for sale in a government auction that begins on Jan. 24.

Google’s interest is sparking speculation on what they’ll do with the airwaves if they win. Blogger Om Malik breaks down the process and sees the potential for a broadband communications network. Robert X. Cringely, a tech writer, is speculating that Apple Inc. is linked to to Google’s bid.

What do you think Google plans to do if it wins? Build a nationwide WiFi network linked to the Internet via the new frequencies? An alternate cellphone network? Sound off in the comment box below.

Stocks rallied for a second day as the financial sector  stocks extended their comeback. Remarks by Federal Reserve Vice Chairman Donald Kohn raised hopes of an interest rate cut.

Are the banks out of the woods? How long do you think the rally will last?