With every one of these new programs, they are sending a clear message:
Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.
Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.
They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.
