This is how you take over the physical infrastructure of a credit/debt based economy: get everyone up to their ears in debt (greenspan’s megabubble) and then stop bank lending. The foreclosures transfer ownership to the counterfeiters. The fed did the same thing in the great depression and it completely changed the US economy from decentralized, rural-based land owners to tenant farmers and urbanized renters (localized and locally empowered to centralized and enslaved), in keeping with the business interests of the robber barons. The shock doctrine has been in use for a long time.
Note: this was originally posted in july 2011 but the graphs are “live”, pointing to the latest numbers from the st. louis “federal” reserve.