work option

I heard yesterday that no new jobs will be opening up in April, after all. The positions will be either secondments or contract.
I've been investigating the whole contract/self-employed option. I'm beginning to like the idea. A home office. Work from there, go to meetings when necessary. Rob will be less stressed because he won't have to cart the kids back and forth every time he goes to school with/for Taryn or needs to run an errand. I set my own hours. Tax breaks for a home business, use of van.
Disadvantages: no benefits, EI, vacation. However, the money I can make might be significantly more than I could make taking a job elsewhere, more than the value of benefits foregone. We'd have to be wise with saving- set up an auto withdrawl.
4 people I work with were students at one time. At least two of them started out with contract work after grad. My supervisor is doing her thing in planting seeds to make work for me once I'm no longer an intern.
What do you think? Wise? Crazy?