[quote=bsrsharma]Market seems to think so. If they actually shutdown, there may be very few mortgage originations (due to lack of secondary market liquidity and weakness in banks’ capital) and that will practically shutdown real estate market. The prices may tumble down much faster in such a scenario. It is probably not a wise move to buy RE now (though, it is a smart thing to sell, if one needs to sell in a time frame of year or two).[/quote]

An excellent point. If the bailout actually happens, the interest rates and downpayment requirements will spike and the qualified borrowers will be all but extinct.
This particular taxpayer is going to reward himself with a dirt-cheap mansion in CV in that scenario.