This piece really excerpts from an article at FOX News:
While the plan may help many who most need assistance, there may be some unforeseen consequences, warned David R. Henderson, a research fellow at the conservative Hoover Institution at Stanford University.
Bailing out homeowners who would otherwise be forced to find more affordable housing could hurt people who are ready to buy homes at rock-bottom prices, he said.
"All those people who have been saving their money, waiting on the sidelines, are being penalized," Henderson said. "The government is taking away this opportunity."
Here's some more excerpts that I'll pull from that article:
Michelle Fry is a suburban Atlanta homeowner who has seen the value of her modest one-family home drop by more than half in the past year. She now sees a national mortgage bailout plan that appears to reward people who bought more house than they could afford and can't pay their bills. And she has a simple question for President Obama:You should go to the books part of the Library of Economics & Liberty. I even links in my book list to The Wealth of Nations, at least to a public domain copy I found in their online library. It might be worth your time, but I certainly need to browse there a little more.
"Why am I paying for them?"
"We are very frustrated and scared," said Fry, 32, a newly expectant mother who works as a creative director for a public relations firm. Her husband Sam, 38, is a truck driver for a local printing company. Their combined household income is less than $100,000.
"My husband and I always discuss, 'Why do we try to better ourselves, when it seems if you do nothing, you get all the help in the world?'” she said.
That kind of frustration is being expressed at dinner tables throughout the country. Middle class homeowners who worked hard, played by the rules and paid their mortgage bills and taxes on time are wondering out loud whether the government is interested in helping them, too.