Unfortunately, it is the one sector that should pay it's way and if it can't the rest of the economy suffers. If the market has any role at all it is in seeing that the core housing sector can be self sustaining without government support in the form of interest tax rebates, low interest rates and spending above a sustainable rate linked to migration and demographics.
What Bush did was make the 1980s Texas mistake for the whole country encouraging land speculation and excessive growth in the housing sector. That pushed up housing prices and has as we are seeing reduced overall housing and industrial growth. It was a fool hardy policy and unsustainable.
The danger is that some idiots may take the situation to a stage beyond repair. If taxes don't rise then interest rates will.... My prediction!
http://www.businessinsider.com/how-the-government-screws-over-savers-2011-7
