First they say that to fix the economy you have to stabilize house prices and get them to go back up again.. Why? How is it that insuring that a home that was affordable to someone with a decent job in 1998 and was valued at 120K in 98 and during the bubble it hit 800K a good thing? How is inflating the cost of housing out of the reach of the middle class good for the economy? Why not let housing prices correct to historical affordable levels a bad thing, I thought that is a good thing? It means homes are affordable without scam loans and all kinds of trickery. Housing deflation means in my book that people will be able to buy a home at a nominal fair historically inflation adjusted price and that means they have more disposable income to spend in the economy for goods and services. A home should not consume 80% of someone's income. Another note, they want banks to loan more to overleveraged consumers who bought overpriced homes that the government want to keep overpriced. How is loaning more money going to help, when they reach their limits again all it just means is a bigger leverage for consumers and more losses. What happened to what is called a free market economy? I remember there used to be this thing called supply/demand curves and price adjustments that kept a fair equilibrium in the market. Anyhow this makes no sense? Why keep house prices inflated artificially?