Quite frankly this is just another case of the rich getting richer. Who will it help?
I quite agree with this but it's the price to pay to help out the banks which is what all the gov't intervention is designed to do. The middle class stimulus is all talk. The gov't is trying to do what is in our national interest — save our financial system.
Realistically, this is only going to help the people are barely affording their houses stay in houses.
But for the plentiful people who were novice "investors" in real estate and were counting on appreciation, the gov't action will be little consolation. They are already way underwater and nothing can save them. If someone is already $100,000 underwater and lost all his equity, reducing the cost of borrowing 2% won't do him any good. Those people will end up in foreclosure no matter what.
