50 years ago The American dream to own a home got the politicians to broker with the banks. They developed policy to make home ownership affordable for nearly anyone. Special incentives were invented to encourage even folks who had no money for a down payment to seek homes through assistance programs—because “home ownership provides an opportunity to build equity and wealth.” No one questioned how these programs would build exponential wealth for the bankers and the politicians.

30 years later

The plot thickens. At just about the time the first generation home owners payed nearly three times their original loan amount (in interest) to finally earn the deed to their homes, a new idea was launched. Offer home equity loans at a low rate. Encourage home owners to buy big ticket items with their loans—things they always wanted but were unable to buy without saving. And to further discourage the…