Economists say that a great way to stimulate the economy without spending any more money is by taking advantage of lowered mortgage interest rates.
More specifically, Morgan Stanley economist, David Greenlaw, says by making it easier for homeowners to refinance their homes, Americans could save more money, which could then prompt them go out and spend more instead. In his report titled Slam Dunk Stimulus, Greenlaw determined that by relaxing refinancing requirements for roughly 37 million mortgage loans that are already owned or backed by Freddie Mac, Fannie Mae and the FHA, $46 billion in savings could be the result (Wall Street Journal).
