Reporting from Washington -- "President Obama, meeting with homeowners at the White House, said the government's efforts to drive down interest rates had fueled a surge in refinancing -- putting money into many homeowners' pockets during the current economic crisis."
It's not that we can't get enough lending, it's that we've gotten TOO MUCH already and we need to begin living within our means.
I think Obama means well and everything but I think consumers will try to make good on their payments, but they won't be able to make the payments because everything else is too expensive for the wages that people receive. If people didn't need to eat, drive a car, have health care, etc., then this would work, but what part of "inflation-adjusted stagnant wages since 1975" does Obama not understand here?
Deflation must come in order to increase the buying power of the consumer--unless Obama is going to convince industry to raise wages, which I doubt very seriously.