You want to really know what happened? The mortgages went from the local bank to the stock market. The stock market took the price of a mortgage and because of the way they “predict” prices, they “predicted” that a $100,000 mortgage would be $300,000. That was the price that someone would have paid for it in the course of the 30-year loan. That actual price was real. If you purchased a $100,000 mortgage you would pay back $300,000 in the course of the loan, when you add in the interest.

What the stock market did, was state, this WAS the price of the mortgage, so then you had a mortgage that was now $300,000 instead of $100,000. They had to make it ‘easy’ for people to get mortgages because they KNEW that the average income of the American working family was $35,000.00 a year. They made the interest rates lower so that when people were paying on this $300,000 house, they knew that the actual price people would be paying for this house in a 30-year loan would only be $500,000. But then they started ‘predicting’ houses were worth $500,000, and the cost of the housing went to $500,000. and so on. It was based on ‘prediction’ and NOT what the house was worth when you look at what the average American was making for income. They screwed the American People and should be punished for it. Anyone in the financial institution that NEW this is what they were doing, should be punished.

The question now is what are the homes “REALLY” worth? What should that principal be? I think EVERYONE should re-evaluate their homes, at the ‘real’ worth in the ‘real’ world. But they can’t do it at ‘today’s’ prices, because they were inflated to begin with.

As an example: 3 houses on a street. 2 houses are in foreclosure, because of unemployment or whatever. All houses where purchased at $300,000, when they should have been $150,000. In fact, the reality is that the banks KNOW it is only worth $150,000, so they sell it in foreclosure at that price! Does that mean that the 3rd house on the street is only worth $150,000? YES!!! That is the price the banks are NOW saying the houses are worth. So, should that one house have their property re-evaluated at the ‘real’ price? YES!!!!!!! Everything should go back down to a level it SHOULD HAVE BEEN in the first place. This would never have happened if the “financial institutions” didn’t ‘play’ the mortgages in the stock market. Also, notice that the stock market can’t even figure out what a “Bank” is and a “Financial Institution” is. Those words have been interchanged in the past 10 or 20 years!

That would FIX the mortgage crisis and punish the stock market for playing it in the stock market and punish these “financial institutions” that played this game. Mortgages should go back to the local banks where they should have been in the first place!