"And certainly don't pay for other people's mistake to do so."

yes, exactly right. that's the crunch - right there.

America has been unable to return to sensible policies based on common sense,. We can't get there until the country stops the Federal handouts and the massive insurance payouts.

If you look back at previous generations .e.g. the Americans who lived during the years 1900-1950, they were a very practical and highly resourceful people. Because they HAD to be. There was no other option. Therefore, that old economy was based on real work, and sensible outcomes for people who avoided risks.

America is having enormous problems because of greed - a failure to return to this COMMON SENSE SIMPLE option. The country will literally go bankrupt if we don't.

ONE PRACTICAL OPTION
that would move us in the right direction - if Fed funds only pay for part of the damages. For example, if Federal funds only cover 30% of losses, then home owners and businesses must pick up the difference. That would put an end to the "financial racket" very quickly.