The federal government is proposing that adjustable-rate mortgages be 'frozen' for 5 years to reduce the number of foreclosures and stabilize the sub-prime mortgage market. Good idea or bad idea?
by 
Old School
ANSWERS: 3
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Bad idea. This bails out the lenders who knew full-well they were lending to a population that had a very high risk of loan default and just shows the lenders that they can count on the Gummit to bail them out when they screw up again. You don't see the lenders returing the profits they made during the whole debacle, do you?
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Bad idea. The federal gov't has no business sticking it's nose into the lending industry.
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Undecided. To me, it's like the issue of government payouts to those who don't have flood insurance. We want to be empathetic and give people a second chance when "disaster hits," but at a certain point we're disincentivizing people from taking protective measures, whehter that be taking out needed insurance or realizing what will happen years down the road with their mortgages. Ultimately, I guess people have to be bailed out, but it would be nice if prophylactic solutions worked to prevent situations like this.
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