I find it very frightening to hear commentators assuming that there will be a steep decline in most Americans’ standard of living.
I also find it puzzling that so many will readily accept a government intervention on behalf of financial institutions; but find such interventions for individuals ideologically unacceptable. What we have is “socialism for banks and financial institutions” and a “free market” for those who would lose their homes. Rather than refinance the homeowner who can’t make his/her upwardly adjusted mortgage payment, the government will wait until the little person defaults and than, and only then, intervene to “save the system”. Its not at all about losing your house. The crisis is about the counting house losses.