Congress is working on a housing assistance package to help bail out the 2% of homeowners under threat of foreclosure.
Presumably the other 98% will pay for it, with help from non-homeowners.
I don’t see this ending well. Lenders made some risky loans they shouldn’t have. They should pay the price for their mistakes.
Bailouts take away incentives to moderate risk-taking. That means risky, failure-prone mortgage loans will continue just as before. Absent better incentives, I see more bailouts happening in the future.
Inertia Wins! 