Forum Post: Once Upon a Time, Honest Citizens Could Purchase ---and Keep--- Their Homes

The housing market collapsed WITHOUT a bail out. It was the secondary market of financiers, bankers, banking investors, and banking insurers that were bailed out.

(a) Bank writes mortgage

(b) Bank sells mortgage (profit);

(c) Bank enters agreement to "service" the mortgage for a fee (profit);

(d) the derivatives are purchased and sold among banks without a transaction tax on the sale, purchase, exchange (profit);

(e) insurers such as AIG insurer the derivative for a fee (profit).

HOUSING supposedly collapses:

(A) banks who purchased the derivatives get bailed out at 100 percent on the dollar for worthless derivatives (100 percent profit);

(B) insurers of derivatives get bailed out 100 percent on the dollar, thereby double dipping (100 percent profit); and

(C) banks continue to "service" the mortgages for a fee for which the collateralized debt obligations and insurance were all bailed out for 100 percent profit.

WHY NO RELIEF FOR HOMEOWNERS? Everyone else was bailed out except for the homeowners!