Matt Towery

The same goes for those who want to take advantage of great deals in the housing market, and sellers who desperately need those purchases to take place. Look, when this housing and credit bubble started, it was because banks and lenders would give credit to anyone with a pulse. Houses were being grossly overvalued for lending purposes. People were buying up second homes in hot markets, often just to "flip them" before the project was even complete. They sold them to eager buyers who would pay an even higher price for what the seller had purchased the property.

America was drunk on borrowing, and gambling with mortgages and credit. Don't the banks and our government now realize that there is a happy medium and that there are millions of small businesses, potential home buyers and responsible people who could put their dollars to work keeping their company doors open; who could buy that distressed house and allow its panicked and heartbroken owner to pay the debt off; people who could continue to buy merchandise in our stores and from our auto dealers?

We are a nation frozen by fear. In my new book, "Paranoid Nation: The Real Story of The 2008 Fight For The Presidency," I chronicle how this whole mess started. And readers of this column will recall that for years I was critical of Alan Greenspan's manipulation of the free market system. But I wrote of a nation that was forced into paranoia by circumstances beyond its own control -- or at least that was under the control of a select few individuals.

It's time to end the paranoia. One way to do it is to demand that these banks share the wealth with the common person. There may be some risk. But the greater risk would be the total collapse of economy, which will take place if someone doesn't shake up this banking system in a hurry.

Matt Towery

Matt Towery is a pollster, attorney, businessman and former elected official. He served as campaign strategist for Congressional, Senate, and gubernatorial campaigns. His latest book is Newsvesting: Use News and Opinion to Grow Your Personal Wealth. Follow him on Twitter @MattTowery