Then Joe Dickweed who got a subprime loan on a house he can't afford will get a check. And the schmucks who were saving for a down payment, or already payed off a mortgage, will get a devalued dollar.
I say let the system bleed. I really don't care if people can't get 72-month financing on a new Hummer anymore. Let lending standards get tight. It's not a bad thing if lenders will only give money to people who have a high probability of paying it back.