But one thing is certain: everyone will definitely not get a bailout from the central government. The politicians will delay for as long as possible to prevent this; that is, they will spend so long talking about who to bail out and how much to give them and what kind of bailout to provide, that they will never get around to actually doing anything. Already, nearly 20,000 new homes go into foreclosure every day and nothing will be done to help any of their owners.
Homeowners who own more than one property and have fallen behind on their second vacation home will probably be completely out of luck, as well. These are usually individuals or families, and they are only a constituency, not a special interest, so they will receive no help to stop foreclosure before losing these properties. Constituencies are on the receiving end of propaganda to convince them to vote one way or another, while special interests are on the receiving end of beneficial legislation, tax breaks, and government welfare.
Investment flippers who were small businesses or individuals will lose everything, while being demonized as one of the real causes of the housing market crash. Investment flippers who originated mortgages, sliced them up and packaged them, and sold them to hedge funds while betting on the continuing appreciation of the real estate in order to pay off any defaults are called "banks." They will receive as many bailouts as it necessary to keep any of the largest of them from failing completely.
Low wage McMansion buyers, also known as the suburban middle class, will pay for the bailing out of the banks, which will push many more of them into facing foreclosure on their own homes. As the US currency's backing of nothing is quickly replaced by backing of bad mortgage debt, the dollar's value will fall, pushing up energy and food prices even higher. This will be difficult to keep up with when the middle class will also be responsible for bailing out large banks to the tune of hundreds of billions of dollars.
"No Money Down" ARM buyers will probably be the ones who walk away, caring nothing for bailouts. They thought they were sophisticated enough to buy a home with nothing down and leverage it up to 100% or more and they would just sell when the market went up another 20%. Now that the market is down, they are not going to be able to make that profit, and they are not going to pay $400,000 on a house that's worth $215,000. These homeowners will not get a bailout, but they could not care less since they will not be in the house to receive any federal money, and any bailout would not be enough to convince them to stay and keep making the inflated payments.
Genetically stupid, delusional people, also known as mortgage brokers and real estate agents, will have to suffer the consequences of the housing market crash. They most certainly will not get a bailout; on the contrary, they are the ones who will be scapegoated as having caused the mortgage mess by inflating home values and assisting greedy homeowners in lying on credit applications. This transfer of blame will ensure that real estate brokers and mortgage originators will take the blame when it was the politicians and the big banks who created the environment of the easy credit and loose lending guidelines.
Honest people who are getting screwed by all of the corruption and market manipulation will also not receive a bailout. However, these people will be used by politicians as the motivation for providing a bailout package that is said to "help homeowners," but will instead provide tax breaks and assistance to corporations. People are losing their homes, so the government will reward GM, Ford, the airlines, and home building companies and call it "foreclosure prevention."