More the reason why you should understand what's going on.
I understand exactly what is going on. Because government regulation imposed on those lending money for mortgages cause a hyper-inflated housing market, especially in areas like Florida and California, the cost of housing was higher than it otherwise would have been and should ever have been.
When the lenders could no longer sustain the pre-doomed improper mortgages that caused the excessive prices on housing the bubble burst. Now the market in Florida has dropped 25 to 40 %. Which is closer to where it should be. Those who are hurt by this currently are
1.The home owners who are now upside down in their homes.
- This adjustment in the market is necessary. And if there is any attempt to drive prices back up to the hyper-inflated state then the piper will eventually come calling yet again.
2. Businesses who are reliant on loans.
- Running on credit whether companies or individuals is a poor economy that will have the ups and downs. They will always be inevitable. And the government can never do enough to stop that. But attempts to will further create chaos.
3. Those employed by companies reliant on loans.
-This is a time to regroup and find new employment. In a real market that is not propped up by a false bubble all the employment would never had happened in the first place and people would have done other things.
The resolution:
Do not try to stop this correction or fix it.It is a necessary step to a stable economy that is based on reality and not a false bubble. We need to stop this credit based ideology and get back to pay as you go. How utterly stupid is it of us to borrow and borrow all this money from China, a communist country, and then slam them pubically about their human rights violations? Scripture says a borrower is a slave to the lender (proverbs 22:7). We are a country of slaves. And there are a great many who want our government to enslave us more and more. We need to get off out butts and work hard for what we get and quit relying on that which we do not already have. We need to quit complaining about predatory lenders. All lending meets that description.