It's a little extreme, but as long as you are coming to a stop quickly it is not dangerous. You will wear through pads faster this way though. I would say that your current setup should be a stop-gap measure until:

1) Kool stop pads are installed. I like the dual compounds posted above
2) If that doesn't stop it, try a fork mounted cable hanger. This is better at dealing with shudder but it helps with squeal for the same reason: shorter cable run between hanger and straddle cable.