Foreclosures continue to plague the U.S. housing market, but government agencies are working to develop a plan to aid struggling homeowners, and in turn, strengthen the U.S. economy.

Last Thursday, Fed Chairman Ben Bernanke went before the Senate Banking Committee and defended the decision to bailout Bear Stearns. Banking Committee members wanted to know if it was done to protect the financial system or if it was a bailout at the taxpayers’ expense.