Have people completely lost their minds?

Buying a house on an interest-only loan is one thing. Now people are negotiating negative amortizations for themselves. That's right, people agree to pay less than their interest, so the total loan amount keeps getting larger.

http://www.msnbc.msn.com/id/14584569/

I know I'm kind of oversimplifying things; a lot of these people bought big in the 90's only to be stuck with houses they can't afford, but still....