some of you are out of touch with reality. sure, it's easy to say "we need a recession" if you're well off, but there are millions of people living paycheck to paycheck, and a recession would mean loss of jobs or cuts in wages. that is not a trivial thing for the people who are raising a family on $35k per year. i know there's an anger against the speculators who bought homes with 5% down thinking they'd make a fast buck, or the mortgage brokers who raked in heaps of cash from 2001-2005, and we all wanna see them get what's coming to them, but there are many people who didn't get to cash in on the good times who'd suffer. trust me, i hate everyone involved in the real estate chain (from brokers to agents to speculators) but a recession would hurt more than just them.
There are many way to solve this problem; first gradually expand the money supply; devalue USD; and at same time; relax immigration standard; import more poor soul come in for back breaking labors and lower minimum wage (join US army; fight wars for US then get your citizenship).
I don't think anyone is arguing that a recession would not be painless. However by continuing to inflate the balloon, we're setting up for very high inflation and collapse of the currency. Then all of your $35K families will be without jobs anyway, and the rest of the country will also be hit hard.... maybe even devastated. Recession = allowing imbalances to correct, and is the lesser of evils. Even if we throw everything we've got financially in the effort to prevent recession, we'll likely have one anyway.... and something worse will be shoved down ALL our throats later. America's alternatives are both bad, but one is MUCH worse than the other. And let none of us forget... THE FED AND GUMMINT ARE THE CAUSE OF THE INFLATION, THE RECESSION, AND THE BIG BUST WHEN IT COMES... All of our financial problems stem from SCREWING WITH THE MONEY.