I can understand the logic… it is simply a kick the can down the road policy and is yet a continuation of policy that will not resolve the problem and simply hopes/waits for inflation to lift valuations.
The real answer lies in letting pricing adjust to an encumbered, unmanipulated price level. This will allow housing to form a proper healthy base which is the foundation of our economy (unfortunately).
Repossession of the homes and putting them on the free market will be painful but in the end will be the best. All of the hundreds of billions and by now even trillions of dollars that have been wasted could be used to subsidize families with help for rent.
SK as a side note I do not see how the actions of either president, Bush or Obama have done anything to promote a stronger dollar. It appears to me that if anything both of their policies have severely weakened the dollar. Perhaps as you stated the intent of congress is to promote a strong dollar but I am not so sure I believe that.
