Those reckless home buyers and mortgage lenders should be punished, which they have. However, the housing market has coming down enough and start to punish lots of conventional home owners. Also the housing price is at reasonable price right now by historical standard. While continuous further dropping in housing price will not only punish home owners but also hurt the economy in whole. while the cycle will eventually finish and going up either way with or without government intervention, the government can make it smooth and less pain.