You've put your finger EXACTLY on it.
Our political masters decreed that large numbers of people who could not afford the amounts borrowed be given large mortgages for nice new houses. Not giving them these mortgages would be "racist." This is basically just another iteration of the decades-long War on Poverty, shoveling trillions of dollars of our national resources into ideas that do not work, because the liberals are trying to solve a cultural problem by shoveling money into it.
So long as housing prices rise steadily, the systemic problem is not apparent.
However, a stagnation in the housing market reveals the existence of this massive economic black hole.
The financial risk of this massive black hole is spread throughout our financial institutions and internationally. Some financial institutions which were more exposed to this risk (Bear Stearns, Lehman, AIG) than others failed or were bailed out, while other weakened financial institutions have tried to merge their way out of it.
Our liberal political masters who created the mess point their "outraged" fingers of blame at the very financial institutions their great idea have killed or weakened. Those greedy Wall Streeters! They did this, not us! It's those fancy "derivatives"!
And of course, to save the financial system they nearly ruined, the liberals will help themselves to hundreds of billions of dollars out of taxpayers' wallets, and they will put political pressure on the mortgage servicers not to foreclose on the irresponsible people who signed up for outsized mortgages, but to forgive part of the debt.
This will simply be a more circuitous and concealed way of the same old liberal game of transferring many billions of dollars from the productive people in our society to the careless and dysfunctional sector of our society eating away at us like a giant cancer.
I think you are right! God Help us. Imagine what the liberals will have in store for us if they get the Whitehouse as well. It’s just a horrid thought. However, I do believe they just shot themselves up. There is not gonna be much wiggle out of this one. The House of Representatives has control of the Purse Strings of the Treasury. Congress is up in this to their necks, primarily Democrats.
“And of course, to save the financial system they nearly ruined, the liberals will help themselves to hundreds of billions of dollars out of taxpayers’ wallets, and they will put political pressure on the mortgage servicers not to foreclose on the irresponsible people who signed up for outsized mortgages, but to forgive part of the deb”
Need I remind you that the majority of voters elected these a-holes... We get the government we deserve.