The Senate compromise on housing includes tax credits for people who purchase new or foreclosed homes. The idea is to kick-start the housing market and get buyers “off the fence.” The National Association of Home Builders supports this approach.

But is this the best way to use tax dollars? Housing economist Thomas Lawler calls it, “one of the worst ideas out there.” While it may aide some buyers, it won’t address the fundamental problem in the market. Foreclosures are rising because people took out mortgages they now can’t afford to pay back. He says it doesn’t make any sense to subsidize people who can afford to make a purchase. “What this means if you aren’t buying a home, you’re paying for someone else who is.”

Despite what lawmakers may think, not everyone is upset that home prices are falling. I’ve heard from people who “waited out” the insane run-up of prices, saved their money, rented or “stayed put” in a mortgage/home they could afford, and they are happy to see prices to fall further.