In 2004, two citizens of an average town in America made major purchases. Joe put $10,000 down on a $100,000 house for his family; Tom put an equal amount of money down on 20 acres of undeveloped property on the outskirts of the city for $100,000. Both men were now saddled with basically the same mortgage amount owed to Megafund Bank. Megafund’s CEO was more than happy to collect their loan origination fees and interest while vacationing in the Bahamas.

By 2006, the borrowers were amazed by their financial good fortune. Houses like Joe’s were selling for five times what he had paid and Tom’s land, thanks to housing developments springing up near his land, was appraised at 3 million dollars.

Joe went to Megafund and took out an equity loan of $50,000 to supplement his son’s college education. Tom also went to Megafund and negotiated an equity loan of $300,000 which he used for a down payment on an office building in the commercial center of the city.

Joe now owed Megafund $140,000 and Tom was indebted by $390,000. Joe’s collateral was his home and Tom now had the land and a building.

After another inflationary period, Tom arranged another equity loan for $500,000 on the land and the building. This money he wisely used to buy a home next door to Joe - free and clear with no mortgage. Megafund Bank was doing so well, the board of directors gave the CEO a 15 million dollar raise.

In July of 2008, foreign imports had so undercut the domestic market that Joe’s company had to downsize and he was fired. He went through his meager savings, his son was forced to quit college and came home to work a minimum wage job to help the family, and finally, Megafund foreclosed on his mortgage and Joe’s family had to leave the home. The family moved in with relatives and prayed that it would only be temporary.

In the same month, Tom heard on the golf course that the growing economic crisis was expected to be so bad that the government would have to step in and do something. There was speculation of a “bailout” of the banking system. He stopped making mortgage payments on his land and building - both of which were rapidly depreciating. The Megafund men threatened foreclosure and Tom said, “Fine!”

The Megafund CEO shrugged his shoulders when the board of directors asked him what the company should do with all of the land, houses, and buildings they now owned but which were not worth what they had loaned on them. He quickly excused himself from the meeting to deposit this month’s salary check for 5 million dollars.

During the last weekend in September 2008, the Megafund Bank CEO and board of directors held an unprecedented three-day session. They phoned lobbyists, Senators, Representatives, and Washington D.C. madams. They waited with baited breath as Congress hammered out an economic plan that would be “fair and just.” And then, they popped open the imported French Champagne.

Congress would sign a check in the name of the American People (and probably the next four or five unborn generations) to bail out Megafund Bank.

Joe’s family still doesn’t have a house and even though Megafund Bank will be able to stay afloat and begin making loans again, there’s no way Joe will qualify - he still doesn’t have a job - he will in no way benefit from the “bailout“ even though he and his family will continue to pay for it in the future.

Tom has a free-and-clear home to use as collateral for a loan to start his speculation cycle all over again.

And the Megafund Bank CEO and directors? We don’t know yet. They’re all aboard the company jet flying to Tahiti for a well-earned and deserved vacation.

Any question as to whether this is a nation “Of the people, by the people, and for the people” or a nation “Of the corporations, by the corporations, and for the corporations?”