Why this is happening

No alliterations or puns today. I'm not in the mood.

Excessive use of credit is going to destroy this country.

Right now, the Bush administration and congress are rescuing us from Bill Clinton's mistakes. I just published a post full of facts on the economic crisis. In that post, I point out that George Bush and the Republicans have repeatedly tried to stop Fannie Mae and Freddie Mac's bad practices in their tracks. They were thwarted by Democrats. I also pointed out that Fannie Mae and Freddie Mac were created by the government. They never should have been. The government has no business giving people houses. I also pointed out that Bill Clinton forced banks (large and small) to give loans in poor communities to people who would never be able to afford to pay them back.

Liberals in government have gotten America addicted to credit.

I hope that every American understands what has happened here.

Tutorial: What the hell just happened

For a long time, the prices of homes continued to rise. Starting around 2005/2006, their prices stopped increasing and started to fall. This is known as a bubble. Popping.

This would have been fine, if the people in those houses actually owned them.

But most people don't own their homes. They have mortgages.

Consider this. A family lives in a home and is paying a $300,000 mortgage on it. Their payments are too high to afford, so they want to refinance. However, their home is now worth only $280,000, so there is no equity on which to refinance. Therefore the family can't pay the mortgage and they default.

Of course, this means that the lender loses money. They could kick the person out of their home and try to sell it, but now that the house is worth less than it was before they will still lose money even if they do manage to sell it.

Since the housing bubble had popped nationwide (in fact, worldwide), this exact process recently occurred thousands of times over, which meant that thousands of mortgages became worth negative money.

Mortgages have long been traded by companies such as Fannie Mae and Freddie Mac. Now all the mortgages owned by companies like Fannie and Freddie are worth negative money, and unless someone helps these companies out they will be bankrupt.

Of course, that is what the government is doing as I type. They are giving these companies money so that the companies don't have negative money anymore.

This is necessary, because without companies like these the American way of life would abruptly halt and we would be in a depression.

In summary, the government (Clinton) forced banks to give loans out to people who could never pay them. Now, the people aren't paying the loans (duh) so the government is paying them instead. In effect, the government bought thousands of people their houses. Actually, I paid for their houses. We paid for their houses.

Stop Credit

Everyone on TV, the radio, in the White House, and on Capitol Hill are talking about "solving the root of the problem". The root of the problem is credit. It is evil.

Yes, it is unfortunate if a person cannot afford a house and has to live in a dingy apartment. However, those people should be encouraged to work hard, save, and buy a house with cash as I intend to do. They should not be given a house. If everyone in the country were given everything on a plate, everyone would stop working and we would all die.

Please, tell your government to stop encouraging credit. Tell Democrats to stop earning their votes by promising people free things. It doesn't work. It hurts us. It fails. It's bad. Why don't people get this?