Perhaps the single biggest headwind the American economy faces, rivaled only by unemployment, is the dismal housing market. American’s biggest source of wealth has been decimated over the past six years, so it was no surprise that President Obama, in his state of the union speech, promised responsible homeowners the chance to refinance and “save more than $3,000 a year on their mortgage.”
Sounds great. But what is he actually talking about? If it were that easy to put $3,000 a year into the pockets of responsible homeowners, why hasn’t the President and Congress done so already? And will this plan be any different than the government’s other, mostly failed, attempts to prop up the housing market and stimulate the economy through lower rates?















