Lake Nokomis Real Estate: Will the bailout work?

The government is going to spend $1.6 trillion to “fix” the economy.  Most of this money is going to buy foreclosed real estate that banks own right now.  The plan is to have the banks come to the government and say, “we will sell you our portfolio for 60% of the market price.”  The government will counter back and say, “no, well take it off your balance sheet for 22% of the market price.”  The bank will be mad, but will probably fall some where in the middle and say, “ok, fine, 35% of market price and you have a deal.”  Then the government owns it and they decide what to do with it and try to get as much as possible for the homes.  How does this affect home prices in Lake Nokomis?  Well, I live in Lake Nokomis and there are a lot of foreclosed homes.  One just up a came up a couple houses down from mine.  Say the bank that owns it right now wants $130,000, but the government buys it for $50,000, then sells it for $85,000, who wins?  government gets a profit, the home owner gets a deal, win-win right?  I don’t think so.  The government just printed more money to buy this Lake Nokomis real estate, got more in debt, and how do we know the true price for that  lake Nokomis home wasn’t $45,000?  Increasing the money supply always causes inflation which causes prices to increase, it make everything more expensive, and any money, or cash in your bank account becomes worth less.  I don’t know about you, but that doesn’t sound like a win-win to me.