Proposed Consumer Finance

The Obama Administration feels a new behavioral concept can provide the consumer with what is best when shopping for complex financial products.

Especially when looking for mortgages. Or whether to choose a prepayment option despite penalties. Or the question of which down payment to place on mortgages.

So the Administration has been thinking of simplified versions of financial choices for consumers, that takes the burden away. It takes the term plain-vanilla to a new level, by suggesting a preferred option for all.

I can see having all choices spelled out on two sheets of paper, in large print and in plain English. The problem, however, is that such a standard option would soon become the only one available.

You will then get what the government thinks is good for you.

You can be certain that the threat of a lawsuit from an enterprising lawyer would drive away any other product from a financial institution.