I don’t know about the “everybody can refinance” part but surely “the banks are going to make all this money off this” is valid. If you have deposits that were earning $2000 interest 4 months back and are earning $1000 interest now, who do you think gets to keep the other $1000? They are still going to collect 19% or 22% from credit slaves but give depositors 3%. That surely helps the bottom line of depository institutions and soothes the MBS ravaged balance sheets a little.
