Know how american banks collapsed and bailout package

Know how american banks collapsed and bailout package
who is responsible this great losses ?
know it step by step.
From this incident its sure american future is not safe .
why all this american banks,financial companies who made profit suffereing lossess.

First reason neglience of politicians and higher finanacial authories.
second reson is indirect fraud, relaxing rules of banks.

Now we go to the year 2000 ,in that year usa faced the problems of dotcom bubble.
so goverment reduced the interest rates this is the begining of this collapse.
that time reducing interest rate help the american goverment but it sow the seeds of destruction.
american goverment is not trying to increase the salaries,income of people but they trying to
fool the people by reducing interest rates. it is impossible to keep the interest rates low forever and every educated person knows it .low interest rates means the benefits to the richer class .low interest rates means bad times ahead for lower class,middle class.

If u purchase the properties o r make investments on the peak of price height thenas you are lower class you are traped .as the interest rates wil go higher your properly value is reduced and you suffere losses.as you are not rich person you can not play gamble like suffere 10% losses and sell itand again purchase it.as a lower class ,middle class honest person its your life time dream to have a good nice
home .
so goverment reduced the interest rates in a year 2000 and again american markets felt
good.

2nd mistake what happend is change in traditinal banking system.
when you take loan from bank the bank gives u loan and keep the home as security.
so bank is responsible to take care that bank is paying loan to good honest people.
and if bank do not get loan back ,bank can sell the property and recover money.
and suppose i f bank pays loan to bad people ,or for bad property bank wil get nothing.
so banks were very carefuly when dealing in loans.

Now after year 2000 and later goverment made new change in this traditinal banking
system.
the mutual funds, and other rich financial comapnies were allowed to purchase this loans
from the banks.and banks slowly realise new profit making system.give the loans to anyone no need for security checks or anything and sell this loans tothis financial companies,mutual funds,investment banks. and make profits to the banks.
In the begining these companies got good loans then slowly they purchase any loan from
the banks without paying any attention to which type of loan they are purchasing from the
bank. this loan is sub-prime loan ,the risky loans.

And there was no check nor banks checks nor financial instituins check nor your goverment
because of this loan was availabe to begger also and slowly it help increase the prices of
everything, as if you do not have job then also you got the loans to spend as interest rates were
too low like nothing.home rates kept increasing , went beyond comman mans dreams but still he got loans. and this again help to increase prices. and side by side started to make rich people more
rich as they played in stock markets or got milions of salaries as Ceo or excutives or in
forms of bonuses.

As prices going to sky heights goverment federal bank increase the interest rates andnow there was slowdown in purchasing power of people .
and there were no purchasers , and this financial companies started to suffere losses.
and declared or started to file for bankrupt status.

Who benefited from all this ?
the rich class who plays in stock markets, the ceo and higher rank executies who got
millions in salaries and bonouses.
suffre is tax payer as goverment is helping to rebuild this lazy,negligent financial
corporations by givening them 700$ billion package.
we hope that this money is spend properly and not utilise in such a way that again politicians
friends or childeren or rich people benefit, the package must see that american tax payer is benefited only .

the best solution would have been to help directly people who can not pay loans by giving them jobs, or extending there loan terms .
eg. is
if bob has taken loan of 100 dollers and he has to pay 100 dollers in next 10 years.but bob can not pay 100 dollers in next ten years.so make this 10 years 25 yearstell bob that he can pay his loan in next 25 years. without charging him extra interest or fines.as he has to pay 100 dollers in next 10 years now he wil pay 100 dollers in next 25 years.
ps.
loan = Mortgages
First time have to say GOD SAVE AMERICA .