Are you also baffled by the home loan crisis today?

Are you confused about mortgages? Good. At least you know you are confused. The global economic system has been collapsed by people who were confused about mortgages and didn't know it. Whose fault was it? It was the fault of the sub-prime home buyer. It was the fault of the sub-prime mortgage broker. It was the fault of lazy financial advisors who put their client's money in asset backed paper that turned out to be worth whatever recycled paper goes for and no more. But the Federal Reserve Bank should carry most of the blame.

It was the Federal Reserve Bank, and only the Federal Reserve, that was responsible for increasing the ratio between how much money a bank had on deposit and how much it could lend to 30-1. Jon Stewart repeatedly hammered this point home when demolishing Mad Money host Jim Cramer on March 12th. Why is Republican Congressman Ron Paul the only politician in Washington pointing at the Federal Reserve Bank? Why are heads not rolling and careers ending at Treasury?. And they should pay. Congress must rescind the Bank's charter and replace it with a central bank controlled by the Treasury Department.

Mortgage brokers tried selling a subprime mortgage to any prospect that had a pulse. They dit it in a way that would make the most hardened magazine subscription telephone sales person squirm.

These shaky mortgages were then bundled and sold to financial firms as 'asset backed paper,' the now infamous 'toxic assets' we, the taxpayer, are buying from the banks. Toxic assets don't exist in the real world. In the real world they have a different name: liabilities. Your tax money is being used to the American government.

Finally, the people who sit and tell CNN cameras that they didn't know that they had an adjustable rate mortgage are simply too stupid to own a home. If not, things that are bad now are going to get worse and they may not ever get better again. These people should never have been allowed to purchase a home, and they certainly shouldn't be rescued from foreclosure.

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