"f-N-f" certainly had a hand in it, but lets besure we are aware of the whole problem. These 2 financial giants are part of the seconday market. So lets besure we don't lay the whole balme on the wheels, and excuse the tires that were on the road at the time.

Realtors jacked prices to get more commission, consumers were in a feeding frenzy seeing home prices up, meaning more for their old place. Those two things fed on each other and escalated. The "Primary" market lenders got greedy and jacked interest rates, and as you can't get interest without a loan being out, they greatly eased qualification of (and in some cases supported the fraud of) the consumers/buyers and qualified folks for loans they did not qualify for, and really could not afford. The consumer getting the loan wanted a high buck house in an ever inflating market, because he wanted to live there a while to build equity, then sell, take a profit in cash, use the cash to buy cars and vacations, then jump back into the next big loan to go back to the well. Banks let the loans go easy, and the only way a bank who has loaned money gets it back is to sell that bad loan to somebody. That's the secondary market, "F-N-F". When Fx2 got the loans that really were junk equitites, they bundled them, lied on the ratings, and sold thm off to other greedy folks who wanted to make interest money.

Bottomline, the economy slowed, folks couldn't make payments, the houses went on a market that had more supply then demand, the prices dropped, the banks were stuck with properties they could not sell, and as no payments were being made on the properties, the investors and Fx 2 lost their income sources for all that leveraged debt.

My desires:
- 1. Prosecute anyone who either granted, applied for, or bought and sold loans fraudulently. Set the tone for intergrity in the system for the future.
- 2. Govt continues to stay out of the market, and spends its time actually QCing the secondary market's behavior and conduct. I.E. get the inspectors in and inspect the loans granted, and zing the bank, bankers, F x 2 execs that do it wrong.
- 3. Do not bail out the home owners involved. They must feel what the risk and damages truely are and be held responsible for their conduct.
-4. Turn down folks for home loans who do not qualify, but make it a federal law the lending institution has to provide them advice on how to better their credit and become more financially responsibloe so they can get a loan.
-5. HOLD PEOPLE ACCOUNTABLE FOR THEIR ACTIONS!
-6. Reward with loans those folks who are of sound credit, and deserve the opportunity for a new house. Better borrowers means lower risk. Lower risk means lower interest, lower interest inspires home buying and spurs the housing market, which fuels builders, and fuels suppliers, all adding to economic recovery. And better buyers, with more secure loans means F x 2 can honestly sell bundled lonas to investors who do have greater peace of mind and security that they have bought good investments.

But other than that.....things went pretty well.