Wyatt
Let me try to make it less confusing.
The power from the transformer (at the street ) is as Q.E.D. and engineer describe it. There is also a wire from the neutral from the transformer at the street into the earth at the street which makes the surrounding earth at the street at the same ground potential as the neutral itself. This means that current seeking ground at the street (all current seeks ground) would not find any one path “easier” than any other. So someone touching a wet power pole doesn’t find him/herself becoming the easiest path to ground.
Now, at your house, say 100 feet from the transformer (remember, the transormer has a nice happy ground [sub]at the street[/sub]) in come the three wires. - the first 120v phase (the term “phase” is used colloquially here) the second 120v phase, and the common neutral. Let’s also assume your house and its electrical system is all happily grounded. But let’s say that the neutral wire from the transformer is not grounded at your house, only connected to your house’s main neutral wire. Your house therefore, may not be at the same ground potential as the transformer/pole/neutral wire at the transformer. Which path would a hot wire seeking ground take?
The real answer is all paths , but the easiest path will get more of the “load”. The easiest path could be anywhere in the system, including your water pipes, which if metal, are bonded to the grounding “system”, or through you when attempting to wash the car.
So, in a properly connected home, the 2 hot and one neutral from the transformer are connected to the meter base. From the meter base, three equivalent wires are connected to the bus bars in your main panel one for each of the 2 hots one for the neutral. All electical wires in your house (consisting of a hot and a neutral) are connected to one of the hot bus bars and the neutral.
As for the grounding, the meter base is connected to the main panel enclosure. The neutral bus bar is connected to the main panel enclosure. Each device in your house is connected (this is the green or bare wire) to the grounding bus bar in the panel which is connected to the main panel enclosure. The metal water pipes are connected to the main panel enclosure. The main panel enclosure is connected to an 8 foot solid copper rod driven into the earth within X number of feet of the panel. (There are local variations and exception to the Electrical Code for some of this, but in the main this is accurate).
Now, what we have is everything from the transformer at the street, to the cabinet of your microwave all connected together groundwise and all at the same ground potential. Current seeking ground will not find any part of the path easier than any other part of the path.
A loose neutral in your panel means that the neutral not only is not at the same ground potential as the rest of the system, but that the ground wire is carrying the neutral load - a bad thing (you don’t expect current in a ground wire).
A disconnected ground means the same kind of thing. The neutral is acting as the ground and all parts of your house are not at the same ground potential as the neutral - a bad thing (The neutrals in your house are only grounded at the panel).
Either of these two bad things happening will often still allow your system to work to some degree or other, which makes them, um, worserer.
A loose or disconnected hot wire comes to your attention because things stop working or go up in flames.
This last thing is worserest.
A floating ground at the Power Co.'s end indeed means that the easiest path to ground for the transformer, and everything connected to it, may well be at your house.