My husband has been harping on this issue for weeks ... and rightfully so. We under-bought a house so we would not be financially tied to it, and so I could remain at home to raise and home school our children. We shopped around and secured a fixed-rate loan and purposely avoided those "balloon" loans that we had heard horror stories about. We have been meticulous about our budget throughout the years to maintain a good credit rating.
Why, then, do others feel they can buy the big house in the expensive neighborhood, over-extend themselves, obtain a balloon loan because the payments are cheaper (until the rates rise, which they inevitably do) ... and then, when those rates do rise, they expect us, the ones with financial discipline, to bail them out in the form of the government?
Brian at Bearing Drift Ohio has a great post about that very subject ... VBDems Will NOT Win The Nobel Prize For Economics.