Don't worry - Congress knows

From my weekly email from Senator Isakson:

Last week, the Senate continued debate on a comprehensive housing package designed to stimulate the nation’s declining housing market as well as strengthen the regulation of Freddie Mac and Fannie Mae. This bill doesn’t bail anybody out, but it incentivizes buyers to come back to the marketplace. It provides liquidity to refinance loans that are under water. It motivates, inspires, and provides liquidity in the marketplace through Freddie Mac and Fannie Mae that does not exist right now.

Failure of the Congress to act, in my judgment, is going to cause us to have a protracted and devastating economic decline resting solely on the fact of the decline in the values of homes in America, the increase in the number of foreclosures, and the lack of liquidity in the lending market.

By saying that buyers need to be incentivized to "come back to the marketplace", he implies that home prices are too low and that buyers need to be brought back to bring values back to where they belong. How can he possibly suggest this? Would he have said the same thing after the tech bubble burst in 2000? Did Congress need to incentivize buyers to come back then? For all the people who can't afford houses when they were at their peak, falling prices are the best thing, and anything that artificially pushes prices higher hurts them. It only saves those who bought at the peak.