Buyers on Fire II - Can an Extended Tax Credit Help More?

The recent WSJ Journal Article, "Is an Expanded Home Buyer Tax Credit A Good Deal?" raised the same issues I talked about in my original Buyer on Fire blog post.  I sound more Republican than I wish, but should America really plan its economic future on hand-outs from the nearly bankrupt federal government or should it rely on natural market conditions to drive sales, revenue and profitability?  It seems the market is doing a pretty darned good job:

1. Lowering prices (far more than a tax credit will do)
2. Lowering mortgage rates (far more savings the natural way than a federal tax credit).

When will our friendly federal government leave good intentions alone and allow the market to reach equilibrium; then allowing us to move forward in real estate in a rational manner?

This will likely spur sales until April and then sales will dip lower than they would otherwise in the following months.

I may be very wrong, but I don't think so.  Your opinions?  I would be eager to hear them..