So why are homes not selling ??

With low interest rate and record foreclosures inventory , why are Buyers not buying? Seems maybe Buyers want to buy but lenders have been so over regulated that they can't lend to ready and willing and able buyers. lenders have to sell loans into the secondary market i.e. Fannie Mae now with under writhing guidelines so tight lender can lend leading to buyers who can't buy and values continuing to decline to try and pull buyers into the market where they can't buy. So what the fix ? Do you think the Government is going to open its own "Loan office / Real Estate Company " like the car dealership "Buy Here Finance on Site"