Avid financiers from all over the world invented a package that they sold to those who could not afford what they thought was inside.
Inside the new financial package was an empty dream with all the attributes of financial bankruptcy and foreclosure, a “subprime loan” that on the whole has caused a total crisis, not as bad as the one still awaiting, when credit cards reach their end and if and when economic conditions really go bad.
Between the invention of the “subprime” and the crises of today, some must have made a lot of money. However, today many of the financial institutions have lost and will continue to lose millions and even billions. It's estimated that it will cost those bottom-line institutions an average $50,000 for each foreclosure.
After having made this terrible mistake, it would be possible for these institutions to put together an equal sum of money and organize an approach to help restructure these loans so that many foreclosures would not be necessary.
An organized surge could instead help these families and contribute to the renewing of neighborhoods in which many of these homes are located.
Eventually the increased values will pay for themselves. But instead, ungenerous inaction, is likely to bring the cost of this mistake onto the rest of us in many forms.
At another point in the world market, international investor who have been placing their money in the New York stock market and in other world markets linked to Wall Street, like gamblers in casinos, always expecting to win are now starting to step away from the tables.
They have begun to wait on the sidelines. Yet those with money, billionares especially, should re-invest in the stock market now in the forms of large institutions, re-enforcing their gains in the coming months and reconstituting confidence in the market. But they believe in what are often referred to as the ways of the market.
One of things that we must remember about the ways of the market are that economic recessions are more or less, psychological, economic depressions are continuous series of economic earthquakes.
Let's deal with the psychological. If we really believe in the market, let's invest now, tomorrow might take us into earthquake conditions. Government cannot do all of the bailing out. It can deal primarily with the symptoms.
The remedy lies within the financial world, provided it stops inventing empty packages and believing in old fashion-type government bail-outs.
Of course, the market lives on losses and gains, as long as the gains are not empty packages to be paid for by someone else and the gains do not depend on squeezing blood out of turnips, like the general “subprime” credit card situation, that is also building up and may visit our economy in the near future.