The Ripple Effects of The Recession.

We all find ourselves affected by this recession one way or another - the question is, how do we get through it.

I am amazed how quickly this happened and I still do not understand what actually caused it.

I read in the newspapers that the Banks have lent too much money to people who could not keep up the payments on their mortgages etc, the banks foreclosed on the customer - the house is then sold, quite often below the value of the original mortgage - everybody loses.

Why did'nt the banks help the client to stay in their houses by increasing the mortgage gradually, therefore allowing time for their clients to get a better paid job, or even a second job. It would have made a lot more sence - people would not lose their homes, the banks would still have monies coming in - everybody gains.

Greed could also be a reason this whole mess happened, insomuch as bank employees and bank managers get bonuses for signing up clients to mortgages and loans - if proper credit checks were carried out about potential clients salaries, some people would not have been lent money to buy houses that they really could not afford. In some cases people were lent money over and above the mortgage.

Proper rules and regulations need to be put in place to stop this madness happening again, because it's the ordinary people who are suffering now through no fault of their own.