Government reverse fix

The State of California has prolonged the foreclosure moratorium for another 90 days. After which time it will take an additional 120 days for the banks to take possession of a home in foreclosure. I'm trying to figure what our wonderful government is trying to accomplish with this extension. I'm so fed up with our government trying to fix everything. Let the capital markets work.
Talking with a realtor yesterday, Ripon only has 35 houses on the market currently that don't have offers on them. In our office we have 20-30 buyers looking to buy, but can't get an offer accepted.
This is how I think about it, most of these buyers are first time homebuyers that can finally afford to buy a home. If they were able to buy, realtors, lenders, appraisers, title and escrow, home inspectors, home warranties, would be paid for services rendered. Taxes to our state and local municipalities would all be paid. All of these entities being paid would generate more spending, more spending would STIMULATE the economy!