So let me get this straight:
Phase 1: People borrowed money to buy crap they couldn't afford, then they borrowed money to buy houses they couldn't afford, then they borrowed more money against those houses to pay off the debt they'd all ready run up buying crap to fill them.
Phase 2: Mortgage companies borrowed money to lend to the people in phase 1. Then they sold those loans to investment banks to pay off the debt they'd run up to make the loans in the first place, then they used the profit to make more loans snowballing until people were not able to make the payments and no one would buy the loans from them.
Phase 3: Investment banks now hold billions of dollars worth of bad loans from Phase 2. So what do they do? They borrow money from the Federal Reserve, who turns around and borrows money from sovereign wealth funds using Americans' collective productivity and assets as collateral.
Phase 4: Learn how to grow your own food and darn your socks.
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