Administration Plans Program to Cut Mortgage Debt of Troubled Borrowers

From the NYTimes:

The Obama administration will announce a major new housing
initiative on Friday that will directly tackle the problem of
the millions of Americans who owe more on their houses than
they are worth. The government will buy loans from investors
at the current value of the house in an effort to stabilize
the market, people briefed on the plan said. The government
will also increase incentive payments to lenders that cut the
principal of borrowers in modification programs. And it will
require lenders to cut the monthly payments of unemployed
borrowers for a minimum of three months.

Oh, my God. When will the government stop spending money it doesn't have?