Has government action helped? Yes it has, by averting a complete shutdown of US financial markets. But no it hasn’t solved the basic problem: Financial institutions are saddled with immeasurable declines in the value of their assets, which prevent lenders from assessing the true solvency of those who wish to borrow. So lenders don’t lend, and borrowers who need funds cannot get their hands on it. In the housing business, this translates to a severe contraction in the type of loans that can be funded. Borrowers who can document their income, have credit scores of 640 or higher, and who seek “conforming loans” (loans that Fannie Mae and Freddie Mac can purchase) can get a loan. People who need larger loans (jumbo loans) or have poorer credit have trouble finding loans, and people who need to find stated income programs (most small businesspeople) are largely out of luck.