Rewarding wrong behaviour

My current state of mind is little nervous. Just like millions around the world, I am anxious about the economic turmoil. My entire life is not dependent on stock market swings (luckily may be) but its unnerving to see my hard earned folio free falling. Of all the things I hate, sense of helplessness is the worst..History suggests that its just a cyclical pattern and the bulls will come back again. But do we have enough patience to wait? Stock market is just one of the indicators, a reactive factor. If the economies are in shamble, the stock market can't do much either... Besides just like million others, I am just a by-stander watching from the sidelines. Neither do I have insider information nor enough clout to change the policies... And I am not happy that we have to go through this much of a mess because of sheer greed of wise and unwise fools. The solutions policymakers are offering look like a ransom in exchange of hostage. Every time why the remedy has to be at the expense of the good behaviour? I know the whole thing started with the bad housing loans. We blame banks for lending irresponsibly but all those borrowers should have known better too. Most of these defaulting people knew very well what they could afford and what not.. I don't believe for second that they are innocent either... With the abundance of the easy credit, people have forgotten the basic rule of living within their means. When are these credit hocked folks going to learn save $2 and spend only $8 if you make $ 10.....This does not at all mean that one shouldn't be ambitious and dream big. But financing these shady dreams with over the top credit is not a wise way of living. I know this nation is proud of the personal negative savings rate and capitalism is fueled by the personal consumption and spending. But in these bad times one can see how the credit empires can crumble spirally down uncontrollably and good moderate people get rolled helplessly. I was watching Suzy Orman show couple years ago and I heard her advising somebody about declaring the bankruptcy. I am glad that bankruptcy loophole is now closed but now here comes the foreclosure mess. Its really hard to be sympathetic about either situation ( except in the very unfortunate situations related to health, disability or death) People who pay off their monthly credit cards on time get screwed by higher interest rates because of people who make only minimum payments. People making regular mortgage payments get screwed by defaulter in the form of falling house values. People trying to save through planning and sacrifice get screwed by the historically low interest rates. And if we were to get universal health care, we will also be paying for all those illegal undocumented immigrants through higher taxes. Where is the incentive to save if the interest rates are hovering around 2-4 % and temptations to spend are limitless? Somehow, people in the middle always get burnt. It almost seems like society as a whole is rewarding bad behaviour often enough. All those hard working, responsible, law biding people of middle class get sandwiched every time. In the middle, you are not fortunate enough like all those CEOs who still get their millions in severance packages despite their faulty judgements and wrong decisions and in the middle you are not destitute enough to get benefits of social welfare either....In fact, you are rescuing both of them without a choice. That's why there should be a solid third party for independents !!!