The housing bubble inflated by the Fed loose monetary policy, fiscal deficit and exotic financial Assets (better called financial weapons of mass destruction) caused the economic hardships we now find ourselves in. But this bubble is not bursting fast enough, again, aided by the Fed and Government policies. Soon they might run out of fictitious bookkeeping entries in the financial economy whose only action is to deliver inflation which threatens to drown us in an ocean of debt. That being said, all actions taken since the 2007 are deferring and making judgment day worse than it needs to be. There are already talks about 2013 being a year where many events will test the strength of the worldâs economic order. Three things need to be wiped out if we are to see a way out. Its called bursting the bubble. - Massive write off of Derivatives, CDOs and other inflated toxic liabilities. - Debt write off of governments, companies and individuals. - National Housing Saving Act. Put people back into their houses at affordable mortgage payments. The 700 billion they used for Wall Street would have been more than enough to accomplish this.