Agree with those thing. 1 thing that stands out though is the fact that had the government not been in bed with the banks on the mortgage stuff, they would have never made those loans.
They couldn't have afforded to do so.
If a bank "in housed" loans like they should, we would never have this problem. However we would not have made banks and politicians billions.
There are many people that think this recent recession was caused by loans to poor people that other wise wouldn't have qualified without government policies interfering with the natural order of things. Traditional poor people were not the problem.
The big problem last decade was actually with middle income families and speculators buying more than they could afford while anticipating their properties would continue to increase in value. Mortgage lenders were often making no effort to verify credit worthiness. That was not the government's doing, that was corrupt lending practices. Still the problem wouldn't have been so bad if it ended there, but those bad loans were resold often several times and ultimately incorporated into financial products that played an even bigger roll in the downfall of the world economy.
Credit being harder to get would not bother me. I don't think it is inhumane to have to rent till you have enough for a 20% down payment for a home loan. That would have gone a long way to preventing 2008, since the housing market would have never gotten overheated to begin with. I can tell you right now the big banks and the government would never go for such a sound conservative approach to home loans. Why not? Because that kind of policy would not stimulate an economy. The government, Fed and Wall St policies intentionally drove the housing boom and for a few years it made our economy look strong. Unfortunately, we were living on borrowed time, artificially stoking the economic flames with cheap money and flimsy credit standards, it was ultimately doomed to fail. Both government and big business had key roles to play in our economic melt down and they were in bed with each other from the word go.