Hah-vahd economist and Libertarianism A to Z author Jeffrey Miron gets to the heart of the housing bubble which will not be popped:
Attempts to prop up the housing market just delay an inevitable reallocation of resources from housing to other activities. It is a misguided attempt to bail out homeowners who purchased houses they could not afford, and to help bankers holding assets backed by housing.
Read the whole thing at Miron's excellent blog.
[*] Cringe at the awfulness of the headline allusion.
Thrill to Miron talking about his new book: