Home Values: Downward Spiral or Return to Normalcy?

Here is a history of home values over the last 100 years. Home values has you can see have stayed around 100,000 on average and only increased an average of 10,000 in 1950. In the 2000's values skyrocketed to over 200,000 because credit has gotten so cheap and easy to get. We are now paying the price for making credit to easy to get. The housing market will survive if we allow the market to return to normalcy and get credit to a manageable point. The Federal Reserve needs to RAISE interest rates and leave foreclosures alone! Anything else will cause future problems even if the problem is "fixed" temporary. Look at the bank bailouts, companies are canceling meeting, advertising, and trips causing hotels to struggle and layoff workers. HMMM............the bailouts are causing job loss!