During the end of the long-term debt cycle, the Fed will find it harder and harder to stimulate the economy with money printing, as the spreads between borrowing costs and asset returns get smaller.

@Jaysen Medhurst,The missing piece in your home buying scenario is the dearth of lending.At the surface, it may appear that low interest rates and down payments are stimulating the market, there's actually another factor at work: the crash itself.

@Tyler Lee rates are manipulated by the federal reserve to help stimulate or cool the economy.

Most the time it just stimulates complacency and disempowers those who are already struggling by giving them another security blanket.

Same way the Gov. stimulated the economy in the great depression.

I know it's a "non-answer" but I hope it would stimulate your creative thinking. 

As I have stated in previous posts the best thing that could happen to help stimulate the recovery of the economy would be for the government to disband the National Association of Realtors and their associated State subsidiaries.

The combination of the Fed's desire to stimulate lending via cheap money and the government's desire to stimulate the economy by running a huge deficit has made it a great time to be a bank: Banks can borrow from the government at artificially cheap rates and then lend the money back to the Federal government at higher rates, pocketing the difference.

Shovel Ready, Infrastructure Construction JOB's are mostly paid for with Taxes and that is just taking from Peter to pay Paul and not providing Stimulation for a Deflationary Economy.

If that happens, it will probably stimulate the economy.What I mean is it gives people a choice to re-invest or to buy a Luxury Yacht, or a new Mercedes AMG.On the political side they are probably doing it to increase the tax draw so they can have more money and control who gets it when it is distributed vs stimulating the economy.In reality the 1031 is a pain due to the rules, but it does allow faster accumulation of wealth than if you paid taxes on it.In many areas the basic necessity of food is sales tax free, they should make all income from the basic necessity of housing (real estate) tax free--like tips used to be.