Markets are cyclical. Greedy markets willingly exceed the debt to income ratio through the selling of artificially low prices built in economies with lower standards of living.
The standard citizen should be counted as ignorant of market realities and thus the government must protect them from tempting ARMortgage wolves and should promote healthy debt to income ratios.
Consumers tempted by low introductory interest rates drown themselves in debt to keep up with the Joneses. Fact is many humans have survived in a more peaceful fashion with much less accoutrement.
Civilization by nature requires respect for life. We are not civilized, we live behind bars and accumulate shit we don't need. To be civilized we would know the nature of the sustenance of our existence and would act respectfully towards all its aspects.
Humans are confused with the fact that their logic is juxtaposed against the nature of reality and can thus be distorted by false perceptions.
As sheep, the majority consumer buys into the propagated media selling their advertisers and we accumulate cheap labor's products. Recession based upon greedy speculation is natural.
All markets of all income levels are inextricably linked to the Earth's cache of natural resources and is thus bound to the nature of their extraction. Destructive extraction leads to non-sustainable resource banks and often opportunity health costs.
Debt enslaves.
Justified economic freedom comes from the support of environmentally-responsible companies supporting local markets via the production of quality goods at reasonable prices and governmental protection from those non-financially/non-environmentally-responsible businesses seeking greedy profits.
Overconsumption begins in the mind and emanates via financial channels. Overconsumption is by nature self-defeating. Recessions will occur around governments more concerned with self-wealth propagation through war productions. The formula is fairly simple: wars create need and the contracts to fill those needs are carefully managed by politicians being courted by professional lobbyists with lots of money. Let's go to war boys!
The fact that the board of the Federal Reserve system did not see the mortgage crisis is indicative of either a decrepit government saddled with excessive paper pushers or shear stupidity. What, selling very expensive homes to people making too little with crazy dangerous adjustable rates with nothing down is the recipe for financial disaster? We didn't see it coming.
WHAT? Aren't you the FEDERAL RESERVE? Aren't you supposed to be the smartest guys in the room?
Hooray, in a show of politician solidarity the government wants to dangle a refund check in our faces to distract us from our soaring debts and convince us to spend more. We have got to boost their approval ratings with a economic rebound!
If the government is willing to sell-out, the responsibility falls directly onto us the end-consumers and citizens. We must promote local environmentally sustainable companies through our patronage, thereby returning markets to non-inflated levels.
Human history is filled with a myriad of economic models designed for different reasons, but only those harboring resource-respect promote the overall well-being of its citizens.
