I certainly hope he is right. But I do not think his mortgage bailout plan is fair to me as one of the majority who pay taxes and mortgage. Do I want to see this bad situation? Absolutely not. As a matter of fact, I am also affected by this crash (this is not a downturn, it is a crash as our business is 70-90% down). I am still managing to pay everthing with lower income. But I am not qualified to get help from this plan that is paid off by my tax money.

If it is a bubble, it will eventually burst, as you said. Injecting money to a bursting bubble does not save. Right now the fed is encouraging people to buy houses by giving $8000 tax credit. It will attract people who couldn't afford a few years back because of the bubble. Meanwhile the fed is trying to keep the bubble standing longer. "house investment"is different from people buy and live. Whether they buy depends on price and job, while investment will take advantage of the bailout plan.