President Obama is pitching his new plan to help home owners. As I wrote yesterday, he is side stepping Congress and overstepping his Constitutional authority. Beyond that little detail, it also won’t work.

Make no mistake, this refi plan is an economic stimulus at best, a political play at worst. It will give some relief to a very limited number of borrowers who may have been on the edge of trouble; it does not stimulate home sales, save delinquent borrowers from foreclosure, stop the bleeding in home prices or rid the market of a suffocating number of distressed properties.

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