Please note: Edited here to preclude otherwise appropriate coprolalia.
Getting people to "Invest in the American Dream" via Home Ownership is, was, and always will be the best thing "Government" can help with toward procuring a viable and civil society, so it wasn't too ill-advised IMHO when perhaps some rules were stretched that allowed some people -- otherwise unable to attain it -- to then do so...but then some other people got really greedy, such as those that already HAD a piece of the dream...and only too many of THEM became drunk on easy-money @ 125% LTV, qualifying on (whatever ; ) "Stated Income", and "Creative Financing" -- most based on some really sketchy appraisals -- brought "Leverage", which then became the name-of-the-game...all of which eventually evolved into what I call "The Orgy of Speculative Development", and it was THAT Investment that bloated and tanked the Housing Market into what it remains today...Habi-Trail Housing, Strip-Mall Sprawl, and Green Pipe-Farms otherwise amok!
Meanwhile of that evolution, the rest of us were being told by nicely suited and surely-trusty Realtors and Loan Officers to "Buy all the home you can barely afford -- You can do it with this Variable Interest Loan! -- and No Worries Mate! Because INFLATION will pay your debt...and statistically you'll probably SELL IT to buy a bigger house BEFORE it'll become due anyway!"...So we did, and you know what?
Things were goin' along just fine! People were makin' their payments just fine...that is, right up until The Fed decided to DEFLATE "The Bubble" that'd been created of avarice and greed driving "The Orgy"...by jackin' interest rates -- 17 times straight! -- 'till those millions of people that put their lives so far out there on a figurative Kite-String -- that couldn't understand to see how something like THAT could happen to WET IT -- then watched their dream break-away and fade.
Subsequently too other "Speculative Investments" that went deregulated -- including Hedge Funds and Derivatives, no? -- then THAT pushed the price of both Gas and Milk to $5 bucks a gallon, which meant that literally everything ELSE inflated too!
And THAT also helped wet that kite-string...for not being able to afford putting gas in the car...to get to work to pay for the house...for the cost of putting food on the table! And what was a granted-stretch to begin with then snapped on that day of Oct. 10, 2008 when whatever wealth had been created of the middle-class over the last ten years -- despite the scrambles of GWFB and his puppeteers -- simply evaporated.
The (if any) solution-opportunity THEN, to correct that, was missed for the misdirection of "TARP" bailouts to The Banking Industry, which deserved NOTHING! Because their "Vig" for their "Risk" was paid-in at the closing-table -- for all their fees and points -- and further of that, paid-out monthly for "Principal & Interest", and paid-OFF for the Equity -- 'cause They get ALL OF IT! -- that THEY GET TO KEEP for Our default! So F*%# THEM!!!
The only "Bailout" to anyone should've went toward KEEPING the People trying to hang-on staying "In"...to then maintain that "American Dream", which is fundamental to making an ascension within our culture-society. The only SUSTAINABLE way to do that then (AND now) would be for "TARP" money to fund THEM...with something such as 15/30 "Product" 3-4% Low Fixed-Rate Interest-Only loans, and then ONLY to Homesteads! THEN The Banks would've GOT most of their payments "IN" -- you know, the ones that were missed thus causing THEIR Default in that "Mark-to-Market" paper-chain? -- instead of people "Walking-Away" from their DREAMS for that wet-string flying that House-Kite breaking...'cause THAT's what tanked THEM "Bankers" in the first place!
Our problems today stem directly from this very failure to re-secure the proletariat...because it's THEM -- the "Consumer" -- that's NOT buying anything...THAT is the real reason jobs were CUT...and THAT is the main reason why no-one is "Creating Jobs". THEY have to afford putting Gas into the Car...to afford making it to Work...but then CAN'T pay for the Home harboring their family’s...for the affordability of putting F*&#ing Milk on the Table to begin with!
Yes I blame THE FED -- for its Monetary Policies -- 'cause that's EXACTLY what started the crack...that broke the camel’s back!
So YES the protestors of "Wall Street" today are right! Because despite what they got paid-off -- for all-of-what's charged against their "Risk" taken of "Mortgages" -- "Banking & Finance" got it co-opted and turned-around to where it's totally screwing US!! So screw the Bankers and the entire Finance Industry too!!! WE THE PEOPLE are the engine of America...THEY operate in-profit as a parasite to IT, so if you want to spur a truly sustainable "Growth" then more-enable the Proletariat, but you must enable them ALL to thrive! Do so, and -- just as they were doing right up 'till "Policy makers" decided to bust some bubbles, and wound-up busting everyone’s bubble -- America will be working again!
Ciao, MAD JAX