Irresponsible homeowners to get bailout

A plan to bail out irresponsible homeowners is apparently in the works:

The government is preparing to unveil a plan that would help around 3 million homeowners avoid foreclosure, sources briefed on the matter said.

A final deal had not been reached as of Wednesday afternoon and negotiations could still fall apart, but government agencies were contemplating using around $50 billion from the recently passed bailout of the financial industry to guarantee about $500 billion in mortgages.

The plan could include loan modifications that would lower interest rates for a five-year period, according to two people briefed on the plan. ...

The plan would be the most aggressive effort yet to limit damages from the collapse of the housing bubble that has shaken financial markets around the world and sparked fears of a global recession. ...

The government’s program would be run by the Federal Deposit Insurance Corp. The agency’s chairman, Sheila Bair, said last week she was working “closely and creatively” with the Treasury Department on such a plan, but revealed few details.

Hey, Sheila Bair, can you pay my rent, too?