As we all follow the financial crisis in DC, WORLD magazine – HERE – has a pretty good summary article on where this crisis came from.
I would add this to the “step 2” of the article: greedy home owners, seeing their equity value increase, did lots of refinancing to get their hands on that (inflated) value, then they SPENT it. When values dropped, they have more mortgage than house — which banks really don’t like.
Such greed is a sin, and sin always pays out hard wages.
I’m afraid that, at this juncture, our government will need to do something (spoken by a fierce capitalist), but hopefully not a bailout, but something which gains taxpayers some value. (This may just be what those House of Representatives’ Republicans are seeking today too).
We must be praying.