So I keep reading about these bank and mortgage bailouts, about tax credits for people buying new homes, etc. Yet I see nothing that actually rewards fiscally responsible behavior. All we see is safety nets for people who were too dumb to realize that 10% increases in home prices year-on-year aren't sustainable.
And having been fiscally responsible, I'm not really comforted - should times get tough for people with strong equity positions in their homes, the banks won't skip a beat to foreclose and liquidate. See, the banks might still be able to recoup their investment, maybe even offset the losses from the 100% financed folks with the reverse amortizing mortgage...
You're pretty much safe only if you don't have a mortgage - either you rent or you own your home outright.
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