When will they (Government) learn?

So I just read an article on CNBC that is titled Deliquent Home Owners to Get Mortgage Aid form Government:

 www.cnbc.com/id/43281199

 I am no genious but let me think about this for a second. 

 If I was a struggling or not even struggling homeowner and I saw my no good neighbor, brother in law, co worker, etc ... get 20K-50K-100K whatever it is off his/her mortgage balance because they are 6 months or more down on their mortgage payments what would I do??? 

My guess, a fair amount will just stop paying their mortgage and claim hardship.  They get 6 months or more of no mortgage and they get a lower balance, sweet.

This is a HUGE moral hazzard and once this is open they can't put it back in the bottle.  This could take our housing market to a whole level of stress, jut the whisper and rumor of this could take us lower. 

In the end all I ask is for the Government to STAY OUT of the market.  We don't need any homebuyer tax credits, we don't need cram down loans, etc. 

 If the government wants to do anything just take the handcuffs off the investors and raise the FHA homes limit from 10 to 1,000 and then just sit back and watch the market heal itself over the next several years.  You can't make the pain go away, we lived the life and we have to pay the price.  Stop looking for quick fix.

Good Investing