I was happy to see that there is some action being taken against risky lending.  I'm not one that likes to see the federal government intervening and sticking its nose into anything much at all, but I felt like I had some crystal ball powers with all of this.

I still make mention of the conversation that me and a friend had over lunch one day in 2003.  Apparently his father was being sold an interest only loan so that he could retire earlier since his house payment would be substantially less (today).  With his father having an ounce of sense, he ended up getting what he came in to get.  A refinance at a fixed, lower rate.  But this got us to talking about how they're pushing these loans to anyone and everyone and how many people are getting into situations that they probably won't get out of easily.  And then ultimately the emotional whining will begin about people being thrown on the streets.  Then guess who's going to have to bail them out?  The people who make proper decisions.

I wish I had a more sympathetic view of this, but everyone that I know that is in bad financial shape is that way because of a deliberate course.  Some have even told me that they live for today, not tomorrow.  Scary.

For details of the plan, please see the article in the New York Times.