Posted On: November 17, 2008, 2:46 pm CST

Posted By: Warning

If you research the mortgage mess (not relying on major newspapers or TV news) you will see that government started the mess and continues to create a mess. Congress insisted that banks loan money to individuals of questionable ability to repay the loans (Chris Dodd and Barney Frank were the main forces behind this). Congress threatened to restrict the banks activities if the loans were not made. In order to make loans to these people "creative financing" (i.e- ARM's, interest only payments, etc.) was needed. People who should never have gotten loans received them. Fannie & Freddie bought up the loans creating a market for them and encouraging more of these loans to be made. Shockingly, after the initial few years of low payments "adjusted" to the actual payment it would take to pay off the loan these people couldn't pay up. Thus, defaults, thus more housing on the market, thus decreasing home values, thus can't refinance, etc. Government jumps in again and this time give $700 billion away (if you believe they are investing the money in these companies you likely believe that they also have your social security money safely stashed away in an account with your name on it). Oh, that's $700 billion of our money which they don't have so the bill should be coming to each of us in the next couple years.