The root cause is not the housing bubble.
We have been having such boom and bust cycles sense the 1920's. This is just one more in the long line. What makes this one so drastic is the monetary system is inherently flawed and this had 100 years in the making. This is why the gold standard was abolished, it would have failed then if they didn't unrestrain the amount of currency they can pump into the economy. It was then "debt" became so popular because more "debt" was needed to ward off the inevitable money shortage.
Today so much "debt" has been extended that the failure is emanate. This is why they had to do the "bail out". This is flooding even more money into the economy in hopes of slowing down its deterioration. And the more money flooding in the less valuable each dollar becomes.
So not only will this "bail out" line these bankers pockets who allow this to occur with the help of government of course holding everyone else responsiable for this new "debt" through taxation. The value in the dollars you have in your bank, stocks, bonds, etc... is also being taken from you through inflation because of this "bail out". So this "bail out" does nothing but move massive amounts of value to a chosen few in order to flood the economy with more currency created by "debt" to slow down the collapse. It is horrable for the average person using the currency to maintain their livelihood being they are not being slapped around once, but twice.
This is what happens when you have a "money=debt" monetary system. As history shows us time and time again, it is unsustainable.
