Thats the problem, they want to and are trying extremely hard to inflate housing prices so that it could create the next wealth effect. You don't create an economy by inflating the prices of houses so that people can start using them as massive piggy banks, that's not the way to create a economic prosperity. If anything that destroyed this economy. Everyone knows what happened last time houses were used as investment vehicles.
I agree with everything except the "inflate housing" part. House prices are still way overvalued compared to historical norms. The run-up from the late 1990s to 2007 was unprecedented. We've had plenty of "inflating" thanks to artificially low interest rates, foreclosure rescue/welfare programs, home buyer's credit, etc. House prices need to naturally fall to fair market levels, then we can rebuild from there. But I won't hold my breath on that...