Money Problems

All the talk about money loss is hard to comprehend. Where does all the money go? This article discusses money loss and creation in beginner's terms:

http://baselinescenario.com/financial-crisis-for-beginners/

What I don't understand is if people are losing money, the money has to be going somewhere, but everyone seems to be in a tough financial situation. Someone or some company has to be receiving money from the losses, but who? Is the money just disappearing? I think the problem can be explained using the mortgage crisis. People have houses that are supposed to have a certain value. The value however, has been falling but the payments are still the same and may even be charging more expensive rates because of default. The default is a result of the losses people have incurred and have caused them not to have money to pay. Prices have increased on gas, groceries, etc., and people have been getting laid off. There is no money for people to pay with. The value is taken out of the home and the money built into the mortgage value disappears. What creates value is the ability and willingness of someone to buy something. When the ability as in this financial crisis is gone, the value does not exist. This article discusses the mortgage crisis causes and also touches on my last point of too much government intervention in monetary assistance:

http://www.americanthinker.com/2008/10/what_really_happened_in_the_mo.html

I also do not understand where the money is coming from to bailout companies or money for welfare type programs is coming from. The government keeps signing bills to help companies with more and more money being spent. On CNN the other day, it was talking about the actual magnitude of one trillion dollars. People used to not have a concept of a trillion. Now the deficit keeps getting larger and larger. The government is creating millions and billions of dollars out of nowhere to help these companies and making the deficit, or overall economy worse. The article below gives insight on the concept of a trillion dollars:

http://www.museumofhoaxes.com/hoax/forums/viewthread/8765/