CNN iReport

Why did people start losing their jobs, their homes, their health care and their hope? Their homes became worthless..or worth less. That's it!

The economic crisis was induced by bundling complex Mortgage Backed Securities (MBS) into derivatives that were sold to someone other than the bank where the loan originated.

So the bank which gave the loan to a homeowner was no longer directly responsible for it's success. Many banks, in collusion with unscrupulous appraisers raised the value of homes beyond their value to make commissions. Short term gain, long term pain.

The investors that bought the MBS took out insurance policies to protect their investments in these loans. These were called Credit Default Swaps. Banks sold commercial paper to buy MBS and everyone was making money.

Homeowners were confident in their net worth because their home's value were appreciating.

Now enter the Federal Reserve Bank. They saw "inflation indicators rising and too much "exuberance" in the economy. We were enjoying ourselves too much.  It was only oil but that didn't stop the Party Pooper Feds.

They began raising interest rates in 2004 and continued for 17 times till 2006 before stopping for a year.

This caused housing to come to a stand still in 2007 and then for a year, Bernanke did nothing to correct the crisis he'd caused.

In 2008, he "realized" the effect he had had and started lowering interest rates. This caused investors in commercial paper to want to sell and banks had to sell MBS to pay back these investors. The housing crisis was upon us.

Now by setting the clock back to 2006 and readjusting home values to that time, most homes would no longer be under water. People would regain the value they "lost" in their home.

Now set an "Intrinsic Value " to the homes with a certificate that would assure value. Add $40,000 in value to each home on paper, that home owners could use to repair their homes, send a child to college, start a business, or buy a car only.

People would be able to again draw an equity loan from their homes and start the economy going again.