I dont think it is ok. I do think that with the credit and liquidity issues the banks are having that they would be inclined to refinance with a fixed rate. If the govt is going to do anything, they should be looking at ways to assist the banks in aquiring SHORTTERM cash to get these loans refinanced to something the owner can afford.

For the people that make 50K a year and bought the 400K house, there is no helping them. They were retarded to purchase these houses in the first place and they wont be able to afford the house no matter how reasonable the banks are.