What is the cause of the Crisis?????

Let us back up a few years and see how this "crisis" got started. First thing the government did was to tell banks that they have to "re-invest" in the community. In layman's terms make loans to people who really weren't financially sound for the amount they were borrowing. Yes this did jump start the economy for a while. Fantasy economic times were here. Everything was good and everyone happy. Realize that when times are good companies become blind to reality. Housing prices rose very quickly so now "investors" wanted in also. The banks blind to the downside of this situation made more and more loans. Then what happened??? Something anyone was has taken a high school economics class should have know. These questionable loans were being defaulted on since the people who had these loans never should have had them. FORECLOSURES FORECLOSURES FORECLOSURES Now not only are the banks beginning to wake up and panic, the situation becomes worse. With the inventory of houses available going up and up (basic econ again) the home prices start to fall. Basic supply and demand. Now the investors get on the panic train. Why make the payments when the value of their investments are falling so quickly. Let's just walk away from these houses and put the bank more and more into the real estate market. Which based on the loans they had made they obviously know nothing about the real estate market. Now the banks not knowing what else to do sell of any sercurities they own (stock market) trying to stay afloat. Now the stock market starts falling. So like sheep everyone starts to sell also. Basic problem is except for retirement accounts the average person does not have a big investment in the stock market. BUT what is the media shoving down our throats every chance they can. Another bad day on Wall street as the US economy tumbles more and more. BS I say. As I previously stated the average American has little to be concerned about the stock market. However panic sets in. People start spending less and less, only because they are afraid of the lies being told to them. People spend less so companies need to produce less. If companies produce less, then fewer workers are needed so layoffs begin. Now the government and the media are really happy because they both have something to do. The media has "news" to report (unemployment is up, companies are failing, etc.) and the government can "help" the people through these rough times. Even if we operate in a deficit we can give out "stimulus" checks and bailout banks and other companies. This way the government is saving all these poor people from becoming unemployed. The government started the whole thing and is now throwing good money after bad, i.e. bailouts. I say no bailouts and let things straighten themselves out. If a company can't make a profit now and is operateing in the red, why would you want to keep that company going. Would you invest your money in a company facing bankruptcy???? Our government is doing just that and we are allowing it. So what if the "Big 3" auto makers fail. New companies will be formed and cars will be produced. And maybe, just maybe, car companies can produce cars without union labor and turn a profit. If they can't make a pofit then I suppose we will be driving cars produced overseas. I am 100% for american products and companies. However if we can't compete then we must improve our system or buy elsewhere. Now you know that in reality we are NOT in a financial crisis at all. just another government screw-up which we have to indure. Have a wonderful day
Ron