Obama is right, we need mortgage refinancing
I've been making the case for just such a program for quite some time. It can be particularly effective if it is focused upon the homeowners who have managed to stay current on their mortgage throughout all of this mess. Obviously, they can handle the payments, so there's little downside risk of propping up people in homes they can't afford. The upside is huge.
Many of those folks will have money freed up to pay for other things, which would be an economic stimulus, or feel comfortable enough to sell for something else, which can offset the foreclosures that are dragging down home prices overall. This should have happened a long time ago.
