The White House is contemplating a scheme for mass-refinancing for homeowners currently with government-backed mortgages so they can refinance at today’s lower interest rates. The Obama regime hopes that if the plan happens consumers would experience lower mortgage bills and more spending money. Many homeowners are presently too far “underwater” with their mortgages or lack the credit standing to have a chance of refinancing otherwise.
Since the government has already put a huge number of plans into action, i.e. HAMP, HAFA, Cash for Clunkers, etc., and nearly every one of them has proven to be a dismal failure, why would we expect this to be any different?