GA Senator Isakson - his housing legislation tampers with the free market

It appears Georgia Senator Johnny Isakson does not believe in free markets and limited government.  I read few news articles about the housing proposal that he is trying to push into the latest stimulus bill at a cost of $20 billion dollars.  To quote a recent article: "Specifically, Isakson’s Fix Housing First Homebuyer Tax Credit legislation would also enhance the existing homebuyer tax credit by:

• Extending the eligibility period for the credit to December 31, 2009;
• Increasing the credit amount to 10 percent  of the home price capped at 3.5 percent of FHA loan limits (geographically dependent) – ranging between approximately $10,000 and $22,000;
• “Monetizing” the credit so it is available at time of closing; and
• Allowing the credit to be used in conjunction with mortgages financed by state or local bonds."

I read the full article and I bet he is right, it would spur some activity in the housing market but at what cost? Not only does it cost $20 billion but what happens to the market as soon as the incentive runs out in 11 months?  I guess sales and prices will slide back again using the same logic he uses to support his ill conceived proposal. Why only $20 billion? The government has been printing and spending so much money lately, why not double the effect? Or heck, why not five times the effect at a cost of only $100 billion (which is less than the cost of the AIG bailout) and extend it to all home purchases and not just first time buyers? Or maybe the government should just offer loans at a 4.0% interest rate (a non-Isakson proposal being floated around Washington).  That would increase activity and home prices as well.  Shaazam, they could just lower the rate to 2% and really get things moving.  But wait, wasn't it cheap money and easy credit that got us into this mess? So let me make sure I understand this right, the government's solution to the problem they helped create is to pass legislation that feeds the very environment that got us into this mess.  Brilliant. Just because Senator Isakson is familiar with the real estate industry does not mean his ideas are good for the economy.  It is way past time for the government to keep its hands off the economy and to stop distorting the market. GOVERMENT INTERVENTION IS NOT THE ANSWER, IT IS THE PROBLEM!  Sorry for screaming but I am sick and tired of the craziness that comes out of Washington on a non-stop basis. Ok, I feel better now.  All the best,  Jeff