Currently, most estimates state that there are approximately $800 billion in underwater mortgages in the US. These people are completely locked out of the current, low rate environment enjoyed by the banks and Wall Street.
Trillions have been allocated for bailout after bailout for the banks and Wall Street, but, at no time during the last 4 years, has anyone seriously addressed the homeowner.
TARP tilted the capitalistic playing field firmly in the direction of the banks. TARP removed any incentive for the banks to make their loans perform.
The economy will continue in a liquidity trap until that $800 billion of mortgage financing is written down, renegotiated, or refinanced. HAMP and HARP are abysmal failures, especially in the hardest hit areas of the US.