To help stabilize home prices, Yun called on lawmakers and the administration of President-elect Barack Obama to spend $50 billion to subsidize lower mortgage rates. Doing so would stimulate about 500,000 more home sales.
"If home prices overshoot downward, than it can lead to collateral damage to the economy," Yun said, adding that the cost would be "very reasonable" compared with the billions the government is spending to rescue major banks.
Notice that Yun recommends subsidizing interest rates to avoid further damage. No matter what you or I think, this government does not want the American economy to go through decades of stagnation, while assets are not properly deleveraged. Look what they did for Citibank today.