[ROP_RIP]

But some worst-case scenarios would have prices drop BELOW where they should be.

This is what people in the industry call a "buying opportunity."

We tolerate this in the stock market.
We tolerate this in the energy market.
We even tolerate this in the agricultural markets, to some extent.

Why should the government make housing exempt from the boom/bust cycle?

What will happen if the government continues manipulating the market, and the younger generations are priced out forever?

[RockinRight]

It is a good opportunity. Good for my business too as my clients will buy more homes.

I just worry about the effect on the economy.

That said, the effect is small. Only a small number of people are actually affected by this agreement.

[RockinRight]

Why should the government make housing exempt from the boom/bust cycle?

To answer this question, I think the answer is simple:

A lot more people have a lot more money tied up in houses than stocks and energy and agricultural futures combined.