You're essentially saying that anyone who gets hammered by the "correction" necessarily morally deserved it because they must have "played in this mess". Because otherwise, you are arguing that some of the people who didn't play in the mess should give money to others who may or may not have played.

This, besides the fact that a correction has already happened, as evidenced by the drop in house prices and the number of homes in foreclosure.

If there is another "correction" now, beyond what has already happened, and it causes even more bankruptcies, discharged debts, haircuts, bank runs, and the like, then the entire economy will suffer, not just those who played in the mess.

As banks look toward deflationary times, they are holding onto cash reserves. (http://research.stlouisfed.org/fred2/series/EXCRESNS) This may be because they fear making loans that will not be paid back 100%, but the result is deflationary because they are all doing it, and they are all keeping that money from the system. It's a self-fulfilling prophecy.

A deflationary period, while our country has so much private debt, combined with high unemployment, will likely leave us with more and more bankruptcies and the "dynamo problem" of the great depression. If this is what you're looking forward to to punish a few house flippers, well, I can't agree with your sentiment on that.