I finally decided that I disagree with most of what you said, there is this erroneous assumption that every American bought a house that they could not afford, spent beyond their means, and didn’t put anything away in savings, 401ks etc.

From where I sit, I see people who worked hard to buy houses that they could afford and live a lifestyle they dreamed about, only to have it all taken away via downsizing, outsourcing etc.

People who aren’t working and can’t find jobs are more likely to utilize the money they have saved for years just to live. What happens when the money is gone?

OK I’m rambling because I am so sensitive when it comes to this issue. But my main point is that I’m talking about human beings down here on Main Street and I think you may be talking about the guys in the glass towers on wall street.

As the U.S. has since learned, houses aren’t an investment because it is not a productive asset. What needs to happen now is for there to be a hard crash, yes, harder than what it has been so far, so that everyone’s secrets come out. Who’s solvent and who’s not? Who’s been spending beyond their means and who has been saving for a rainy day? Who’s income increase was due to funny money investments and who’s increase was due to genuine improvements in productivity?

Only after the day of reckoning has come, and the truth has come out that every player in the economy will feel confident enough to start building up again. The economy will not regain steam until there’s a solid and known foundation for it to rebuild from.