The government doesn't recognize this and instead uses our money to bail out a problem that is the product of corporate greed, further throwing our economy out of control, and making this "recovery" much longer than it has to be. As said in this article the housing market plays a gigantic role in a healthy economy. When people can barely afford homes, or leave their homes to move in with others, that's a lot of money that is bypassing potential consumption. If I can barely afford my mortgage how am I going to pump money into the economy by buying products from businesses? The housing market has restricted our buying choices, increased our cost of living, made business firms lose money(further depressing the economy, no money for businesses, no jobs for people), decreased our standard of living, and had the government get policy gridlocked trying to deal with the deficit they're in because they dished out billions of dollars to war and the failing banks and housing market, as well as people getting government aid because they can't afford their rent!
The corporate greed is inevitably going to backfire on itself. What is the point of having those billions of dollars in your company when the dollar dies and becomes essentially worthless? Congratulations, you'll have billions of slices of paper that have no more value than a god damn penny. Time and time again we could have used the wisdom of the past to get over our problems today, if the government and the people had the capacity to analyze mistakes that other nations have faced throughout the history of the world, instead of arguing that times are different now. TIMES AREN'T DIFFERENT NOW, the only difference is that now there's a lot more houses for our population than there has probably ever been in any societies before us. Know what that means? That means we're even MORE dependent on the housing market than any other nation ever could have been. For every person who gets a roommate instead of mortgaging a house that costs at least 50% of their income a month, the prices of houses continue to go down and the interests the banks put on people continue to go up, as they want to meet that inflation premium and not lose money.
Fact of the matter is there is no way they AREN'T going to lose money if they aren't willing to stop oppressing people with unbelievable rates. As more houses are made, houses become cheaper, that's just basic supply and demand! As less people invest in a house because they'd rather have that extra spending money at the end of the month or at least enough money to feed themselves, the more the housing market suffers because those potential house buyers are now lowering their standard of living(owning a house independently) by moving in with roommates. This idea of sharing costs does indeed work for the individual, but it hurts our economy. All of that money that consumers aren't spending(consumers being people who pay utility bills, mortgage, etc) is money that isn't being pumped into the economy. So you have these mass amounts of homes that no one is living in because people would rather wolf pack to have more money for savings or to do what they want with.
All of this is provoked by greedy bankers and ignorant politicians. Sharing the costs of living doesn't help the economy as much as owning your own house would. Sure if you and your friends are sharing a house, you all split up the bills so your cost of living is lower, and you can go and buy that nice widescreen TV you wanted. But as more individuals live together and less people actually own houses themselves, this causes all that money that could be spent on housing to be spent on other things, further reducing the prices of homes, and in the end, screwing the banks over as their investments in these houses are deflating. "Forcing" the banks to increase interest on individuals in order to make up for the losses that they've caused themselves for being imbeciles. In the end the banks are causing their own demise in the long run.
All of these people that are having a horrible time affording mortgage while still maintaining enough income to pay bills and feed themselves are going to do one of a few things. 1, they could commit suicide because of the amplified amount of depression in their lives due to the financial crisis they're in, and not being able to afford medical help. 2, they could move in with roommates, further killing the housing market, forcing the prices on homes to go down, and making the banks worth less than they actually claim to be worth. 3, tough it out and never spend money on "wants" such as the nice TV, which in turn hurts businesses because this individual can't afford to spend money on what (s)he desires. As you can see none of these options really is beneficial for the economy. One is lethal to the individual, two is beneficial to the individual but not the economy, and three isn't really beneficial to anyone in the long run and is bad for business firms who specialize in consumer demands which further makes the economic vortex spin downward into the ground until it crashes.
It is plain to see that the banks are the ones to blame in this area, and that nothing the consumer can do will truly fix the economy. It's out of our hands. It's up to the banks to "bite the bullet" AKA stop being greedy bastards and "forgive" these people in debt, who are in debt because of the banks' greed in the first place! From my point of view I think WE need to forgive THE BANKS, but economically that wouldn't work. These conditions our economy is in is the product of corporate greed, specifically banks and war profiteers. When the super rich stop preying on the poor-middle class, that is when we will see true economic stability and prosperity. Having all of the money at the top isn't good for anyone, not even the top! Think of it this way. As the top makes more money, and the bottom makes less money, eventually it will get to the point where the top can't make money because the bottom has no money to give.
What happens when all the money is at the top and there is no money at the bottom? People don't buy products, and consumption is one of the biggest factors when it comes to money the government gets from us. Businesses go under as people aren't buying their products, the 1% that everyone is talking about becomes the 99% because they aren't making that money anymore. The top 1% own politics, but as there is no money in politics that power they have over government is pointless and ineffective as the government has no resources to instill their supremacy in. In short? The economy collapses. The dollar dies or is nonexistent. The American dream is crushed and shattered by corporate greed and the blissful ignorance of the government and the top 1%.