I totally agree with Powayseller, and with the arguments she made. I also don’t see any trick anymore left. Interest only loans/ARMs are in effect already infinity-time-frame loans, so even the 40-50 year mortgages wouldn’t make the current payments any cheaper. Also, there has been so much money taken out of real-estate rather than put in, so bailing out the home-owner by subsidies would take out even more money, and really throw good money after bad. So something like lowering interest rates again to 1% wouldn’t fly anymore IMO, especially since the inflation-monster will at some point raise eye-brows.
If anyone knows another trick that is left, I would really be impressed. But maybe I am not imaginative enough.