Prime rate for Corporate America is down by over 5%, but the mortgage rates went down a fraction of that. Why?

The housing crisis is unprecedented; the same way that the first $700 billion bail-out ratified in about a week time was. I know that the mortgage rates are at record 40- year low, but it is not enough! We should have the interest rates at lowest ever as an emergency, the same way as bail-out for big corporations was. When you bundle 5 million foreclosures, it should become "too big to fail", but it DID NOT because no one as powerful as the Treasury Secretary (who listens to the Wall Street) could tell the President to stop the failures (for whatever reasons) NOW. To stop the foreclosures (over 1 million in 2010), the government must figure out a way to reduce the 30-year fixed long term mortgage rates to about 3%. There should be certain percentage of loans with even lower rates for a 5, 10, and 15 year terms.The percentage should be figured out based on a formula that the economy could absorb when the loans would become due and have to be refinanced. The longer the term of the loan, the less of a future problem since over time the inflation as well as the reduced principal of the mortgage loan would take away the risk. Then, the mortgage payments would become affordable and it would become cheaper to own than rent. Investors would snap the rest of the properties to rent them. The foreclosures would stop. The banks would be in better shape since the potentially bad loans would become good performing loans. More people would qualify for a new loan or refinancing since the payments are lower with the lower interest rates. Now the government is trying to reduce and subsidize the principal amount of a loan to reduce monthly payments. This is not working since the home prices are falling further. If the interest rates go down, the property values will go up and payments become affordable at the same time. The wealth creation due to increased home values would stimulate the economy further. The guidelines for lending should be also modified to be more realistic without increasing risk. Banks must participate in loan risks. Fannie and Freddie should have a very limited role. The banks are now paying record low interest for saving accounts and should use the money with some kind of an insurance added to mortgage fees and then banks could participate in loan risks based on more realistic criteria.For example, if a person has not been late during the past few years, he would not be posing a new risk if his mortgage loan interest rate go down resulting in lower payments. He should be automatically eligible for refinancing with the lower payments since he has been paying the higher payments throughout the most difficult period during the housing crisis. Many big financial institutions got the government bailout money and manipulated the stock market to make record profit. Other companies on Wall Street recovered fast due to interest rates being near zero. For example, IBM had record profit because like many other companies they could borrow at 1%. as it was reported. Why can't the homeowners on the Main Street be treated the same way and given cheap money to turn around the housing foreclosures. If it was good for the Wall Street, it must be good for the Main Street. The reality is the lobbyist from big companies have more influence over the government decisions than the middle and working cles. There were over 1 million foreclosures last year and the suffering is unimaginable among the children of these group of people. there will be even more foreclosures in 2011, unless the interest rates go down further. If interest rates go down it will stimulate the housing industry. The jobs created by the housing industry with lower mortgage rates would benefit the Main street and would bring down the unemployment rates. Without housing recovery, the economy will not recover fast and the unemployment would remain high.The Obama Administration was perceived to be sensitive to the plight of people living on Main Street, but it made the Wall Street its first priority for recovery, may be rightfully so. Now what? There is no excuse not tobe sensitive to foreclosure rates by letting it go through its normal attrition. The crisis was caused by the greed of Wall Street and "creative" and fraudulent packaging of the loans into securities. Now the common people, with good or bad credit alike, have to pay the price by seeing the equity in their homes vanish. Some of the inflated prices were unrealistic. On the other hand when is "enough" is enough. The suffering as a result of foreclosures have reached unacceptable levels in terms of human including innocent children. At least, the government should try as hard as it did to resolve the bankruptcy of AIG, Goldman Sachs, Citibank, GM, B of A, and others. In aggregate, the human suffering is the same as if one of the "too big to fail" companies. In other words, when you add a couple of millions of foreclosures together in a bundle, it