Things will return to the standards of 30-40 years ago. That is, lending requirements will be stricter, down payments will be higher, and rates will go back to a more "normal" 7-8% during times of low inflation. Fewer people will be able to qualify for mortgages which, based upon what we've seen in the past few years, is a good thing. This will eventually result in a better balanced supply and demand situation than we're currently seeing, but there will be more homes for sale than buyers with mortgages to buy them. Home prices will bottom out and then return to a more reasonable rate of increase that is more in line with affordability.

And, of course, those in Washington will be around to help the next bunch of crooks who stumble upon a new Ponzi scheme.