A check on the banks show that consumer confidence is waning in light of higher food prices and energy costs ratcheting up. It’s impacting the middle class wallet and devastating the working poor who live in the margins.

Property taxes, insurance costs as well as complimentary costs are equally rising. Banks need to provide a more accurate readings of risk.

The bursting mortgage market bubble is not an inherent feature of free financial markets. Creative mortgage financing originated outside the banking system in it’s own black box.

These mortgages were aggressively marketed promoted to people with bad credit and who were bad credit risks. Mortgage brokers were effectively unregulated. It was pure insanity. Giving the keys of expensive homes to the bottom rung of high risk society was pure folly and financial suicide.

Real estate was gambled beyond the regulation of financial futures and other types of financial derivatives. At least there you had to put up some risk capital. With no money down and no skin in the game, speculation was rampant.

Homes are not like the stock market. If you are wrong you are sold out if you can’t make the margin call. It’s quick. Homes take a long time to market and sell. It’s expensive and complicated.

Banks have been doing business the right way. It is painfully obvious that there is an urgent demand for strong standards for mortgage brokers. Federal regulations and standards need to be applied so this type of financial bubble never occurs again.