The government - the People of the United States of America - did not drive homeowners underwater. The government did not adequately police the activities of the packagers and insurers and originators of home loans, but that does not make them/us responsible.
What the Government should do is . . . well, I don't really know, but I think that Government pays a lot of attention to people who make really good money, and not much attention to those who don't. I know that my neighborhood schools wouldn't be any better off if homeowners had a lot of equity or not, but they'd be better off if none of the kids in attendance had hunger problems or unattended-to health problems.
The Government should have jailed a LOT of people. Bailing out underwater homeowners isn't justice, in any way, shape, or form.