Peter's Viewpoint

First of all, it is not simply the housing industry that is postulated.  Bank loans affect business startups and expanding businesses, and that directly affects whether or not people find jobs, and even affects how and what we buy that also affects national and world markets.

Simple as it may sound, credit cards and bank loans were pushed upon us to increase our own self-wealth but then the markets drop from under us because banks are playing cards and using fixed decks abusing the financial markets until everything collapses.  Then all of a sudden, banks hold back on loans and people are forced to repay at higher loan rates instead of being able to deal their own loans using smaller interest rates that was offered by other banks.

Voila (as zee French say), people start to attain bank loans but the banks stopped approving them.  The people most affected by this are those who were given bank loans even though they should not have been approved due to the fact that they were over extending their means to repay.

A logical solution
What we have not seen up to now is a solution that would simply aggregate the debt and set repayment over a set number of years.  Banks would still collect their interest and the depositor’s money, people would have been able to pay smaller payments to meet their debts, and a lesson would have been learned by all that would probably have a lesser impact globally than what we are seeing today.