Originally Posted by guage
Stupid people makes stupid choices.
Actually that is under the venue of both the Federal and State Banking Commissions. They are the ones with fiduciary responsibility to insure that loans made are viable and protect both the lender and loan holder.
Loans made with ARMs, Interest Only, No Credit Check, Automatic Flips, Bait Rates and other "predatory practices" are the responsibility of both the loan buyer AND the government regulators. Currently the number of regulators is the smallest in history in both the state and federal level.
To define it as "stupid people..." is a true insult to the millions that dealt with this predatory practice. While some folks understood what they were getting into, most folks do not have the understanding of economics to have understood the ramifications of their decisions. [the same can be said for those who invest in hedge funds, they look nice and shiny on the surface but...]
So no, this is not more government control of people's personal lives. It is simply enforcing the regulations that exist that require a lending institution to provide "good faith" lending practices for stockholders, the lending institution and the mortgage holders. That is what has failed and is costing Billions to bail out.