If you want the keys to understanding the political reality in America read the following. This is probably the clearest thing I've ever posted to MemeStreams. If you've ever read anything I that I've posted to MemeStreams, you should read this.

The middle class faces a harder economic situation than they did 30 years ago. This is the consequence of US federal and state economic policies.

Read Elizabeth Warren:
The Over-Consumption Myth
The Vanishing Middle Class
The Middle Class on the Precipice
Whats hurting the Middle Class

The same financial regulatory framework that is crushing the middle class created the conditions that caused the housing crisis.

Read Barry Ritholtz:
The Big Lie
The Big Lie Part II
Big Lie Part II Supporting Economic Data

These financial regulations are being created because of the way that well funded private interests can manipulate both Congress and the people into believing in things that aren't true. Elizabeth Warren and Barry Ritholtz both touch on this aspect of the things they are writing about.

Here is a very clear example of hundreds of thousands of dollars being spent on whispering campaigns aimed at discrediting people who have the wrong views:
Lobbying firm's memo spells out plan to undermine Occupy Wall Street

Larry Lessig writes extensively about the corruption of Congress. I agree with a lot of his observations regarding the problem. I don't think his proposed solutions will work, but his observations about the problem and his work toward an answer are nevertheless important:
Democracy after Citizens United (Click Through to "There is no Pro")

The bottom line is that it is important to understand that wealthy interests have manipulated both the Congress and the people who vote for it into believing things that are not true, and that Congress has therefore created a financial regulatory framework that benefits those wealthy interests in the short term, to the detriment of the welfare of the American people in the long term and in fact to the detriment of the stability of the global economic system in the long term. These wealthy interests continue to be successful at controlling the political system in spite of the obvious damage they have done, because they have been so successful at convincing people to believe their lies. Our economy will not function properly again until those lies are dispelled and discredited.