Because the bailout rewards irresponsible and unreasonable behavior. Because it rewards people for living beyond their means. And because it punishes those who were financially responsible and live within their means in that those folks get nothing. From the governments perspective, they need nothing because the government does not reward smart choices.

Heck, I know somebody today who is about to buy a home with 100% financing. They even want the developer to pay their closing costs because the have absolutely no cash. Why shouldn’t they, the government will bail them out if they get into trouble. Heck, it is basically free rent. Way to incentivize folks uncle Sam.

Don’t forget the bailout is more of a banking system mitigation, and it was those banks that loaned all that money to people who had no business borrowing it.

Our government rewards stupid choices. It is the American way. Lots of government programs are stupid choice social welfare programs.