Sharky:

In response to your question regarding how we US people are reacting to the current economic travails?

We have to go through this turmoil and uncertainity. However, none of us should make any mistake. This situation has been caused by undisciplined, reckless, greedy people who believed through their ignorance, that housing would forever go up. They were encouraged by loose lending standards and their own stupid, rapacious, blind greed.

They were aided in their greed by by the slovenly practices of the former Chairman of the Federal Reserve. And yes, I mean Alan Greenspan. As a result of the lack of effective standards for obtaining mortgages, they have put the nation at extreme fiscal risk.

I am not underestimating the cost of our fight on terrorism and its enormous cost. However, remember, those actions began in 2001. The debt crisis had its origins in the incredibly loose monetary polices that began in 2002 and continued into 2006.

Along with a total relaxation of mortgage qualification standards, people were able to get mortgages with frequently absolutely no demonstration of ability to pay in so called no doc(umentation) loans. Sometimes, even the down payment of a measly 5% or so would be financed. Additionally, some of these mortgages were called ballon payment mortgages. In additon to no documentation being required, the mortgage payment was for the first two years artifically low. After two years the mortgage payment would increase. Frequently by double or more. People figured that prior to the end of the two year period, they would sell the house and figuring that real estate always goes up, they would turn a profit. Unfortunately, many of these people before they could sell the house, the market turned increasingly negative and they were stuck with no potential for selling without taking a significant loss. Which of course they did not have the resources to incur.

And of course, they did not have the assets to take the loss. So, they did not make their payments and lost the house.

All in all, a total travesty of all consuming greed and stupidity. There are many culpable parties. The stupid, greedy home owners. The greedy real estate people who frequently in pursuit of a sale, did not deal honestly and fully disclose the details to the customer. The mortgage brokers and lenders who in pursuit of ther next deal, dropped all principles of sound business practice. The regulatory authorites who relaxed all sensible precepts of normal business practice.

There were so many greedy, senseless people that it makes me sick. Not to mention madder than he**! How dare they through their stupidity and greed place the economic security of an entire nation, my nation, at risk!

Brian