The current administration has another plan to reward misbehavior - having banks cut the principal on mortgages where the home is worth less than what the borrower paid for it. This just rewards the speculation that went on unchecked for the past several years, and allows those who purchases or borrowed against a home more than what it was worth to get out from under that debt without feeling any pain.
Who pays for this? Well, the administration would have you believe that the lenders (ie, banks) are going to pay for it since they have such deep pockets. But you and I both know that the folks who have played by the rules and not run up debt on our homes that we cannot afford will end up paying for it through higher taxes, reduced credit and higher fees from our banks.
Still, I'd rather follow the rules than not. I know that I'm not a slimy parasite on society!
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