Economic Fix: Accross the board mortgage drop?

[soutthpaw]

I mentioned this idea before in a thread somewhere, but I have a simple fix for the economy... Do an across the board interest rate reduction of all mortgages in good standing to like 4%. (even if only for 5 years and then refi or revert back to your original rate) this is well above the prime rate so the loan companies/ banks would still make money. ... that will put millions of not billions of $$ back into the hands of american homeowners who will then be able to spend or invest that money in the economy and stock market.... and the domino effect would rebuild the economy from the bottom up.

This would be automatic, not something people have to apply for.... obviously it needs to be government backed or even mandated to all companies that took federal money so it would probably hit 75% or more of all mortgages... I think Fanny and Freddy hold about 50% of the nations home mortgages

Oh and not sure the value of AIG but could the government not have let the company go under and then buy all the paper connected to personal retirement savings/ investments and forgo all the speculator/investor complex security stuff and still have spent less than they have given AIG in bailout money???