There are only a few key people really driving the bailout bus. They include Barney Frank, Chris Dodd, Chuck Schumer, Paulson, and Bernanke. Each of them has made very clear that they will not be satisfied with the bailouts until they make home prices stop falling.
Will the particular programs put in place so far achieve that goal? I don’t know and it’s irrelevant. What matters is whether the govt has the ability, using all its powers now and in the future, to prevent a quick return to historical norms for house prices.
