On the surface these tax credits may seem like the government is trying to keep the bubble of the real estate market from further deflating (if it hasn't already burst).  But people need to understand that the housing sector is probably THE most important sector of our economy.  Some economists estimate that housing and all the ancilary businesses associated with it make up about 40% of our economy.  So it's no wonder the government is doing everything in it's power to keep it afloat.

And beyond the economic impact is the emotional impact of a crashing home market.  When individuals lose money in the stock market it's not as psychology damaging as losing one's abode.  Nor does one's loss in the stock market affect all their neighbors.  We need to get housing stabilized in order to see the economy stabilize AND to give people confidence once again.

I applaud the government for taking these actions.  We've seen the effects of them on the general economy thus far (and yes I know the unemployment figures came out today at 10.2%, they're always a lagging indicator).  We need to be patient.

The best analogy I can make for people is this: the Detroit Lions went 0-16 last year.  I don't think anyone in their right mind would expect them to win the Super Bowl this year.  Last year our economy was the equivalent of the Detroit Lions.  It is going to take some time to turn the thing around.

Thank you for the post and best of luck to you.