Isnt the middle class to blame as well?

I was not sure where to put this so I just stuck it in skunk works. SO I recently attended the OWS protest in Philadelphia and there were a group of people there who want the gov't to get rid of the fed and go back to the gold standard. I didnt know much about the fed except it gave money to the gov't so I started to do a little bit of research to really understand how it works. While doing this I ran across an article that was attempting to explain how the housing bubble bursting affected the market.

Basically its claim was this, the US economy only prospers with the creation of credit and when credit is not being created it has a huge negative affect on the American economy. And so it broke down credit creation into two categories treasuries and agencies. From reading about agencies from another source I learned that agencies are basically credit creation in the form of mortgages, student loans, etc. Usually given out by businesses like fannie mae which has creditors to pay as well. From what I understand about the housing crisis it was basically people not being able to make their payments on mortgages which in turn stopped businesses like fannie mae from making their payments thus stagnating the creation of new credit which in turn hurt the economy.

While I understand that some of the terms within these loans were questionable and unfair, isnt it the responsibility of the person taking out the loan to do their own research? I kind of feel like the middle class is being portrayed as victimized when they could have taken preventative measures as well before embarking on something like buying a home to avoid the predatory practices that were put into play. I am in no way implying that these businesses were not at fault because they were clearly playing a dangerous game. But I feel like everyone is at fault no just the corporations who provided the money to the banks to make these loans. I would just like some input on this and some correction if im misunderstanding how the economy works and how the mortgage crisis occured. Obviously my understanding of this is very basic.

The link explaining the fed

In a way, it is is the middle class' fault. But, realistically, they're not the ones playing Russian Roulette with grandma's pension money. They weren't the ones packaging risky loans in with AAA ones. They weren't the ones sending jobs over to China and bribing politicians to deregulate, deregulate.

Certainly, the middle class has helped it along, but the root of the problem stems pretty much from where the OWS folks say.

Disclaimer: I do not believe Corporations are not inherently bad.

Here's another shell game for you to peruse.

The Mortgage True or False Game

Banks recklessly loan money to people knowing that, though the homeowner can pay the initial interest payment, they won’t be able to afford to pay down their principals as well as the dramatically increasing interest inflation when their mortgage is sold to other institutions, and subsequently traded around like a baseball card.
Many banks will call clients and talk them into getting loans and mortgages they don’t need, and ultimately can't afford, making verbal promises, which the sad souls would later learn conflicted with what was on the paper they signed.

Other cases involve banks calling people at home, promoting new account securities their clients can switch to “in order to better protect their money in case of overdrafts or bad checks.” These new plans, as told to me by a friend whom works, or should I say "worked", for Citizens Bank in good ‘ol Pennsylvania, are designed to lure people out of their free checking accounts, basically tricking clients into releasing the bank from their contract obligations, allowing them to tack on new fees and limitations (which, by the by, are never mentioned in the promotion, and are hidden beneathe double talk in the actual contract)
A scam, all of it.

reply to post by acmpnsfal


Every problem in this nation over the last 20 years IS the fault of the baby boomer middle class..


a. if you are the largest portion. ie-------> strongest..

Yes, the middle class has some duplicity, as does a sheep while being led to slaughter. When talking about the Fed though, it should be noted that at no point during its creation were the citizens consulted, as with most things government.
People in general are conditioned to play by the rules established by society through government. What most miss is that the government that makes the rules is most often populated by those who are acustomed to breaking the rules and forcing others to submit to their will.
The Fed came about as a result of influence. At the time of it's creation, those whom were considered "learned" would by todays standards be considered average or below. They tended to be singular in their knowledge and therefore relied upon others for advice on subjects outside their expertise. Who better to advise on the subject of finance than Bankers. Bankers in those days were no different than they are today. Their primary objective is and was to seperate prey from money. It was, by all definition, a coup. By gaining control of the monetary system, they gained control of an entire country and it's people, and they did so with the blessing of people too simple in their understanding of power to realize what they had done. They had given those who sought the power and influence of money the sole right to print and distribute the coin of the realm as they see fit without government interference or direction.
There are those today whom think that abolishing the Federal Reserve and returning to "The Gold standard" will put the US back on track. While theoretically this seems fine, the problem now becomes national debt. In order for the national debt to be covered by gold reserves, Gold would have to be valued around $100,000.00 per ounce.
Frankly it is too late for a return to the gold standard. The only viable option is default. The US must reneg on its debt before a viable alternative to its current financial system can be found, and it must stop consulting with bankers for answers. In fact, The US as it exists today must be razed to the ground and started again. The influences that form their government today have become so finacially motivated that good is defined by profit or cost. No other factor is considered so weightedly or used to make descisions than money.
I ask you, if polititians and politics is so hated and maligned, why then do we allow politics to decide our future? Are we not as capable as they are to make the wrong choices?

In this video David McAlvany explains the financial Armageddon that is now effecting the whole world. Don't be fouled by main stream media, our currency is experiencing hyper inflation. Time to prepare for the death of paper money! Gold and silver are once again our real currency.

Cannot embed but this video is well worth seeing. Normally Alex Jones is too nuts for my taste but here he is controlled and presents interesting points.

www.thefallofamerica.net...