Had the government not been in the loan business and regulating who had to be loaned to, and had the banks been forced to cover their own paper, it never would have happened.
Too many people buying homes they could afford, with easy money, continuously driving the housing market higher.
I do not doubt that giving $25K to first time home buyers will help them buy homes, but do you not think it will drive prices up? And when they default on the loans, of course there will be a program to make payments for them. How is it fair? It's no different than the student loan forgiveness.
Get the government out of the student loan and home loan business the prices would plummet.
Make banks responsible for the money they loan, and make borrowers responsible for the money they borrow.