| Although the United States government pumped billions | | | | loans fell into foreclosure. |
| of dollars into the system to ensure major banking | | | | Once these mortgage payments increased many |
| institutions did not go bankrupt there is still a serious | | | | people, with the loss of a job, or because they |
| disconnect between the major banks, individuals and | | | | believed that when the time came they would be able |
| small business. Over the last few years more people | | | | to make the increased payments, started to fall behind |
| are finding themselves seeking debt relief help | | | | on mortgage payments. Now they were not only |
| because of several factors spurred by the countrys | | | | facing foreclosure but were also seeking tax debt |
| economic troubles initiated by the nations banking | | | | relief - a double financial whammy. However, the major |
| institutions. | | | | blame cant be placed on the individual because there |
| Most of these families, before the economic meltdown, | | | | was more at play that most people were completely |
| were able to make their payments and live a relatively | | | | unaware of during the real estate boom. |
| comfortable middle class lifestyle. With more | | | | The economic disaster was a perfect storm creating |
| Americans finding themselves unemployed or | | | | devastating consequences for individuals caught in the |
| under-employed, they are also finding themselves | | | | middle. Yes, some blame can be placed on people |
| seriously behind on mortgage payments and facing | | | | who bought more house than their salaries could |
| foreclosure. However, in some cases these same | | | | sustain but more realistically it was the overarching |
| people bought homes that they couldnt afford but | | | | greed of those in the financial industry. Now, too many |
| were lured into these deals with interest-only or | | | | middleclass families are seeking debt relief help due to |
| adjustable rate mortgages. These adjustable rate | | | | falling behind on mortgages. And with little investment in |
| mortgages or ARMs were designed to give middle | | | | small and medium sized businesses to add jobs for the |
| class families the opportunity to pay extremely low | | | | unemployed or under-employed the rebuilding of the |
| monthly payments in the short-term and then after | | | | U.S. economy will take years to recover. |
| anywhere between two to five years payments were | | | | The economic crisis became a major focus in the |
| set to double or triple. | | | | national news and dominated the congressional |
| While many major financial institutions began to hand | | | | agenda for weeks as lawmakers debated the |
| out these risky mortgages, there were others in the | | | | reasons that taxpayers should bear the burden of the |
| industry dividing up these mortgages and selling them | | | | financial meltdown. The middleclass citizen was asking |
| to other banks with what they called derivatives. | | | | all the right questions but in most cases it was too late |
| However, the number of these failures was woefully | | | | to avoid the problems for thousands of families across |
| underestimated and the capitol to back them up was | | | | America. Anger, disbelief, and more questions about |
| nonexistent. Still others took out insurance policies on | | | | how the richest country in the world could be facing |
| these derivatives, which were designed to pay the | | | | financial ruin were reported from those on main street |
| claims for the holders of these notes when these | | | | as well. |