We've all heard the reasons most frequently given by the persistent weakness in the housing market: greedy lenders defrauded unsuspecting buyers at home adjustable rate mortgages, and enthusiastically purchase of their home too high, their incomes and deception in their lenders loan amount were too high. Although there are a lot of truth in these arguments do not explain the overall picture of what happened to the economy to maintain a crisis of foreclosure.

One of the most importantWhy do so many Americans find themselves in difficult financial situations, lack of economic knowledge and leadership by politicians. This leads to enormous additional costs from Washington, which spends more money than it takes the form of taxes. Then a part of the gap, the station bureaucrats loan from China and other countries, but this is not enough. Now, Washington wants the Fed to print money, which devalues the currency and filledthe dollar. This means that the prices of everything else increase the economy, such as food and transportation. Owners with incomes stagnate or fall, you can not keep pace with inflation at 10% or more, and if their mortgage payment is about 15% due to a variable rate, a financial disaster is only one salary.

An ill-conceived foreign policy, which is also a waste contributes to this problem. The nation borrowed to give $ 2 billion a day by the Communists in China, policymakers $ 12Billions of euros in development aid to a military dictatorship in Pakistan, then a salary of $ 1 trillion war in Iraq, "promoting democracy". Here, too, Washington can not afford all that with only the money that we are indeed doing so, the Fed prints more money to finance the deficit. It should not be surprising that oil producing countries want more dollars because of the devaluation, which drives up oil prices with inflation, which already have been expelled from the instability caused by the size of our militaryAdventurism.

Finally, a further problem in connection with the foreclosure crisis in the public school system. For over a hundred years there has been a systematic dumbing down of Americans have been executed by the government public schools teach students how they react to things like bells and ordered to rest, but not taught to think critically and analyze situations in a broader context. E 'therefore surprising that many people are reading less than a book a year, butrefinance their homes with a mortgage or extremely complex instruments a year. No need to understand not only the bureaucracy, have not even tried to read or explained to them by a lawyer who often hire them for the association to close the loan.

And this lack of basic financial education contributes significantly to the lack of owners of houses and flats to understand what they need to have embarked. So, people do not know how to manage their balanceCheckbooks or recognize the importance of planning ahead for the next 10 minutes of their lives. If they could their finances a little more depth of analysis, may establish an emergency fund to get them through a hardship or financial market crisis. But people who can not be saved even if an additional 2% of their income for an emergency fund should be in a position that will be realized more of their money was stolen by inflation and the contradictions of the linkMoney from Communists to give it to dictators and then pull to war to spread democracy.

Furthermore, this lack of ability to think critically is one reason why many of them having to go to vote for presidential candidates this year, promising them "free" does not understand that this will be paid for with taxes more high, sell more the economy to foreigners, or of a further devaluation of the dollar. Everyone likes free programs and free handouts,but simply do not exist in the world of politics and economics. Someone has to pay to enjoy everything and bureaucrats, people, performance, at least those who pay more for as long as they get to enjoy a slice of the pie.

The foreclosure crisis is not an isolated event from the failure of the market and buyers and greedy lenders taking advantage of other causes. While this is certainly happen forces, there is still much larger work. Unfortunately,but some of the owners in foreclosure, you will not get in their situation, and even less able to do something about it. For homeowners who are in danger of losing their homes, the most important action that can take, which is in no way to stop a foreclosure come by, and concern over macroeconomic issues, after they are financially sound again. However, we hope that this experience will teach many of them that causes the solutions to problems thatForeclosures in the first place are not with the institutions themselves.