Even with these bail outs, I doubt there will be enough money for a real substantial bail out. There would probably be qualifications, like having the ability to pay back some similar loan, having a job etc…
Then you have to consider that if the prices stay high, we still won’t have the first-time buyers feeding the market – they are effectively priced-out. It would take huge inflation to boost wages up to a level where housing would be affordable to them.
Also, what happens when the boomers start to retire in large numbers and want to cash in on their “nest eggs” hence, flooding the markets? What about when they start pulling their money out of the stock market and use it to live on?
There are too many factors for the bail outs to actually stabilize anything. The most they can do is prolong this ridiculousness for a few more years.
