An example.... A couple I know was in the construction business, contractors, in 2007/2008 when the crash hit. They built simple middle class homes. Their retirement plans involved 2 very high end properties they owned and had mortgages on. They had built about 80 homes and had very aggressive home building plans scheduled through 2008.
When the crash hit, their building plans went out the window. Families could not get loans and canceled home building plans. Because they could not build anymore and make a profit, the couple had to short sell their 2 properties...still vacant and now crumbling. All their contracts were cancelled and they had no income.
They ended up living in a small 5th wheel RV on a friend's property. Only this year, have they been able to afford to rent a tiny house. They were wiped out and so were all the people they employed. They struggled for 11 years to pay off their remaining debt, including some huge medical bills...I think the stress made their health much worse.
Multiply them by millions. People are just starting to dig themselves out of the debt left behind by the crash. Paying back debt does NOT build a healthy economy. Wiping out home builders and the average middle class home owners wipes out affordable housing for others. Banks still holding crumbling, dilapidated houses takes away affordable housing.
The rich recovered nicely what with their bailouts and all, but the middle class is just starting to recover and they were the ones building affordable housing.
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