If any government agency had the power to save the r/e bubble from bursting they would have already done it. They may do what they can to keep rates steady but the new laws passed today banning stated income and adjustable loan qualifying just took the legs out from under any short term recovery. Even if they slow the supply, decreasing the demand still has the same result, lower prices.
It’s all noise at this point, they will liquidate indymac or liquidate it’s assets to free up the cash to save the other 300 banks that they will need to cover losses for, they can’t lock up their cash trying to prop up prices with others working in competition for those same few buyers. The invisible hand is almost visible.
