During a major housing market collapse, a homeowner finds that their outstanding mortgage balance is significantly higher than the current market value of their home. From the perspective of this 'underwater' homeowner, critically evaluate the potential effectiveness and fairness of two different policy responses: 1) Government-funded bailouts for the large financial institutions that issued the mortgages, and 2) Direct financial assistance or loan forgiveness programs for individual homeowners. In your evaluation, consider the immediate financial relief and the long-term economic security for the individual.