They already have a moratorium on foreclosures in many instances...

They already have a moratorium on foreclosures in many instances and now the government is going to use taxpayers money to keep those who can't afford to meet repayments in their houses. The banks are also keeping more foreclosures from hitting the market and yet property prices are still falling. How long can they keep bailing? I wonder what the demand will be like for US treasuries at the next auction?

It will be interesting to see what the details are as it could cause some interesting distortions. For example, if the subsidies are sufficient it may warrant a two income family dropping one income to stay with the kids and pick up the govt subsidy instead...who knows.

I would probably be a bit annoyed if I lived in the US and was a prudent taxpayer/saver etc.

Cheers
SBC