FDIC Chair Proves She's a Complete Bozo
NEW YORK (CNNMoney.com) -- The heat on U.S. mortgage lenders and servicers was turned up a few degrees this week when the country's chief bank regulator publicly proposed that they permanently freeze interest rates on subprime adjustable-rate mortgages (ARMs) for many homeowners.
"Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it," Federal Deposit Insurance Corp. Chairman Sheila Bair said in prepared remarks at an investor's conference.
Sure! Why not? After all, gotta find some way to bail out all those people who were too greedy or ignorant to figure out that 2%, 3%, 4% doesn't last... Why should red-blooded Americans have to honor their contracts? Why shouldn't home prices just keep rising on a tide of dumb lending, made permanent?
Thanks to our peeps at Housing Panic for pointing this idiocy out for us.
And remember, folks, these are the people running (was that ruining?) our economy. This is not a drill.