The Chickens Rebel Against the Guards

From CBS Marketwatch, we have: Lenders gone wild.

Countrywide Financial, the nation's largest residential mortgage lender, argued against new rules. "Interest-only and payment option adjustable mortgages have been tested in previous economic cycles and are fundamentally sound loan products," Countrywide wrote in its official comment on the proposed guidelines. Requiring lenders to qualify borrowers on the true cost of a loan, the company said, "would tend to defeat the intended function of the loan and would significantly reduce the number of borrowers that could qualify."

See if you can read through this thoroughly Orwellian argument!

The Fed regulators have taken the proverbial punchbowl away. The tide has receded, and only now can one see who's been swimming naked (Thanks, Mr. Buffett, for that wondrous metaphor!)

After all, why should lenders worry about the "true cost of a loan"?

Need additional evidence?

Mr. Mozilo and his cronies have been dumping the shares of CFC like pimps dumping a syphilitic whore from their roster.