I blame our greed for the unraveling of the credit market. For decades we have been deluged with offers of credit, and most of us have used borrowed money to pay our bills at times–the definition of living beyond our means.

Eventually, our incomes didn’t keep up with our debt, and the whole thing ground to a halt as people stopped paying their bills. It’s bigger than the subprime segment–the crisis is spreading into commercial real estate, auto loans, and credit card debt.

We talked ourselves into believing that home prices would rise rapidly forever, and that that would provide us with virtually limitless funds through refi’s and lines of credit. Investors jumped at the prospect of double-digit returns, and poured their money in without considering whether it is possible for something to only ever go up in price.

Now, you have to realize that banks borrow from the Fed. With cash so cheap, banks soon had a huge surplus. The banks make money by lending (or investing in ’safe’ assets), so they don’t like to have lots of cash sitting around. So what do they do? They lower requirements for loans, and invest in all sorts of creative crap products, because if the money just sits there, it will be devalued by the high inflation caused by-the expansionist policy!

The Fed’s distortions of the money market are the problem. A decade of artificially cheap money will be paid back somehow.

It starts here and the more you know, the more you WILL get pizzzed off.

Look at the back of a dollar bill
It says Federal Reserve System
How many of you know that system is privately owned?
How many of you know that the Federal Reserve System is controlled by a few banks and a handful of very rich people?
How many of you know that the chairman of the Federal Reserve System is probably the most powerful man on the planet?

The Federal Reserve System controls our money supply
Prints our money
Interest rates
encourages you to be in debt
lends money to our government while you the tax payer are paying interest on that debt.
That our money is not backed by anything tangible, such as gold or silver, but only backed with a promise.

In short, they control just about every aspect of your life, your money, your credit cards, your mortgage, your car loan, student loans, your retirment, etc.
Including having their hands in getting us involved in money making wars.

The smartest thing I ever did was chose to live debt free about 20 years ago. It is amazing how much of our money is eaten up by the Federal Reserve System, and how much more disposable income I had because I made the right choice.

And more information about the federal reserve system:
And this audio from Senator Ron Paul
And video
Other prespectives

For more information about this and other important issues, download this:
TVU Player
Then I would tune into:
Channel 68078
Exposing 9/11, police state and tyranny
Documentaries about 911 and other social issues over and over again.

He directed Fanni Mae to make no down payment loans available to all, increasing home ownership by 5.5 million families.

Allen Greenspan, former head of the Federal Reserve just last week said he was as surprised as anyone that after deregulation of the financial institutions, banks didn’t use common sense in giving loans to poor people.

Republican Presidential candidate, John Mccain, bragged that he was always a fan of deregulation for his whole term in Congress.

Republicans have had a majority in Congress for most of Bush’s Presidential term, so to blame Democrats for the situation we have today is disingenuous. The last election shows most American citizens have put the blame exactly where it belongs by not voting for Republicans to continue down the path of national destruction, and depression of our economy.