No doubt this is a major problem. It is not, however,  some unforeseen economic malady that is squeezing the middle class of America out of their homes. This symptom of our economic woes could have been avoided.

Prior to World War II the majority of homes were purchased with savings. After the war, more and more homes were mortgaged. Roughly here is how that was done.

In a fractional reserve banking system. (We are talking about the Federal Reserve System (Fed)) A fraction of bank deposits are required to be held in “reserve” relative to check book money in circulation. It is called the reserve ratio. If we use a reserve ratio of 1:9, for example: one dollar held in reserve will permit 9 dollars of checkbook money. So, for every one dollar deposited in a member bank (of the Fed) nine dollars of check book money (loans) can be created out of “thin air”. That’s where the patriot community gets the phrase “out of thin air money”.

For over 50 years now about 70 percent of this “thin air money” has fueled the real estate bubble. As this event grew larger, the vertically integrated money interest have turned have turned this into the  feeding frenzy that we call the Mortgage Meltdown. Of course, congress intends to act. Let me quote the incumbent in a flier he has labeled: “The fight is on to protect American Homeownership (sic)” In the last paragraph he writes “Billions of dollars in sub prime hybrid adjustable-rate (ARM) loans are projected to reset in 2007. As bad as foreclosures are already, the worst will come in 2008 and 2009. It will be the worst foreclosure crisis since the Great Depression, and Congress should act as forcefully now as Congress acted seventy years ago to respond to a nation in crisis.”

In response to this obvious reference to the draconian unconstitutional acts of President Roosevelt and Congress in the 1930's: a more powerful federal government and private central bank (the Fed) are more the cause of our current misery than a possible remedy. In fact, the incumbent seems to be sending a comforting esoteric message to the moneyed interest.

 We must insure that Congress does not bail out the banks at the expense of the middle class or the working class in America.

Read “Constitution Fact or Fiction” by Dr. Eugene Schroder for a comprehensive review of Constitutional degradation starting in 1933. Only by serious monetary reform can we correct this problem. And, No, it will not be painless.