The Fed exists to protect big banks from the free market

This sounds controversial, but it is not:

The Fed exists to protect big banks from the free market

Indeed, that is why the Fed was created. Banks can not be exposed to the free market, because a bank run can destroy the entire economy.

This is a bit more controversial:

The Fed exists to protect big banks from the free market, at your expense.

Who pays for the bailouts has changed over the decades, and who pays depends on how progressive or reactionary the politics of the decade are.

This is good:

Because buyers already borrowed too much money and cannot pay it back. They spent it on houses that are now worth less than the loans. This means most banks are still actually bankrupt. But since the banks have friends in Washington, they get special treatment that you do not. The Federal Reserve prints up bales of new money to buy worthless mortgages from irresponsible banks, slowing down the buyer-friendly deflation in housing prices and socializing bank losses.
The Fed exists to protect big banks from the free market, at your expense. Banks get to keep any profits they make, but bank losses just get passed on to you as extra cost added on to the price of a house, when the Fed prints up money and buys their bad mortgages. If the Fed did not prevent the free market from working, you would be able to buy a house much more cheaply.

As if that were not enough corruption, Congress authorized vast amounts of TARP bailout cash taken from taxpayers to be loaned directly to the worst-run banks, those that already gambled on mortgages and lost. The Fed and Congress are letting the banks “extend and pretend” that their mortgage loans will get paid back.

And of course the banks can simply sell millions of bad loans to Fannie and Freddie at full price, putting taxpayers on the hook for the banks’ gambling losses. Heads they win, tails you lose.

It is necessary that YOU be forced deeply into debt, and therefore forced into slavery, for the banks to make a profit. If you pay a low price for a house and manage to avoid debt, the banks lose control over you. Unacceptable to them. It’s all a filthy battle for control over your labor.
This is why you will never hear the president or anyone else in power say that we need lower house prices. They always talk about “affordability” but what they always mean is debt-slavery.