Preview
Preview

Economics and the Foreclosure Crisis Essay

No Works Cited
Length: 2009 words (5.7 double-spaced pages)
Rating: Blue      
Open Document
Need writing help? Check your paper »



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Throughout the last three decades, the United States experienced a substantial economic expansion. With more spending power than ever before, people began to seek larger purchases. Most of these significant purchases require the use of credit, and real estate is perhaps the most notable market which uses credit. Banks saw the great potential for profit, and sought to grant as many home loans as possible during this period of great wealth. Gradually, banks began granting loans to less qualified customers. After all, this inflationary period would continue forever, right? This is where the foreclosure problem began. The expansion ended, and a recession began. Suddenly, thousands of lower-income loan clients found it impossible to make payments on loans they should never have been granted to begin with. This problem must be resolved, and the nation must restructure itself so as to ensure that a similar event never occurs again.
To begin, one must examine the roots of the foreclosure problem. Like most issues, it is two-sided, and both sides must share the blame. Lenders know very well when to grant loans and when not to. This was certainly the case throughout the 1990s, when most of these problem loans were given. However, for some reason, the basic guidelines for lending were ignored, often on a massive scale. Why? Most people would point to the blind desire for profit. This is at least partially true, but it was certainly not blind. Banks were noticing that during this time of success, lower-income people were becoming more able to make larger purchases. Everyone was getting wealthier. So why not grant loans to these people? For the answer, one must look ahead. Surely, a recession would come eventually. A Capitalist economy fluctu...


... middle of paper ...


...t be resolved through an individual's drive to succeed in life. Once the economy is back on its feet, which should take only a year or two at the current rate, it will be time to prepare the nation for long-term success. The time is here to restore confidence in the private sector. The time is here for people to realize their own ability. It is time to toss out half a century of increasing government control over economy, and allow the greatest nation in the world to express its desire to achieve in the form of productivity. It is time for people to regain the desire to determine their own fate, and to have full control over their personal finances. This system, which was once the United States of America, requires a great deal of personal initiative, but it constructs, without fail, an economy which is built upon a foundation of stability, wealth, and prosperity.



Click the button above to view the complete essay, speech, term paper, or research paper

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »







This essay is 100% guaranteed.


Title Length Color Rating  
Solving the Foreclosure Crisis: Require an Economics Class to Graduate High School - My plan to fix the housing crisis would be a two phase plan. The first phase of the plan would be how to handle what is going on right now and what to do about the people that are already the causalities of this catastrophic failure of American free enterprise. The second phase would be on how to prevent this from happening again. The core of the first part of phase one would start in education I am aware that you need to take an economics class in order to graduate high school; a new requirement would be added to high school graduation requirement....   [tags: Foreclosures,] 1263 words
(3.6 pages)
Strong Essays [preview]
Essay Proposed Options for Solving the Foreclosure Crisis - Economics, we as a group have responsibilities to ensure there are checks and balances. The statistics are over whelming. Who should be foreclosed on, who are making an attempt to continue payment. Lenders whether they are a bank or mortgage company need more compassion not greed. Are the homeowner’s really bad people or people of misfortune. What are the available options, where can a homeowner go to receive them. Those who are irresponsible, non responsive should be held accountable to go forward with foreclosure and commend those who are responsive and responsible with compassion....   [tags: foreclosure, economics] 977 words
(2.8 pages)
Better Essays [preview]
How To Solve The Foreclosure Crisis Essay - "How to Solve the Foreclosure Crisis" The foreclosure crisis in America isn’t something I just hear about on television or in my high school Economics class. It is something that my family and I have been living through for the last few years. It is not just a problem for banks and mortgage companies and politicians. It is a problem for real people like me. According to the Center for Responsible Lending, 2,400,000 foreclosures are projected to happen this year. I live in Arizona, a state that has one of the highest percentages of its citizens in some form of foreclosure....   [tags: Economics, Mortgage, Housing Crisis]
:: 11 Works Cited
1094 words
(3.1 pages)
Strong Essays [preview]
Essay on How To Solve The Foreclosure Crisis - The current foreclosure crisis has affected a lot of people. I have relatives that were recently kicked out of their house. There are several reasons why this is happening and several ways to approach the crisis. My opinion is that a lot of problems are caused by lack of education. If everybody were educated about economics and marketing I believe most people would have been able to avoid foreclosure. High schools for instance should start offering courses in economics and handling finances. Financial education should start as early as possible....   [tags: Economics, Mortgage, Housing Crisis] 1076 words
(3.1 pages)
Strong Essays [preview]
Essay on How to Solve the Foreclosure Crisis - “I can see clearly now, the rain is gone. . .” This is the music that was playing in my mind when a solution to our foreclosure crisis took shape. I was in one of my electrical engineering classes and was thinking very deeply about my assignment. Simultaneously, my mind kept flashing the images of hundreds of homes in my county going into foreclosure. More homes went up for sale every week. Driving to school as the semester dragged on showed us all how hard our neighbors were struggling and failing in Oakland County....   [tags: Economics, Mortgage, Housing Crisis] 1799 words
(5.1 pages)
Powerful Essays [preview]
How To Solve The Foreclosure Crisis Essay examples - The foreclosure crisis in America is growing, and becoming less and less exclusive daily. At first, it applied mainly to lower income individuals and families, or those with subprime loans and other credit entanglements. It stands to reason that those looking to use credit to purchase a home must be mindful of their credit standing, and the direct effect it will have on their interest rates. If they acquire mortgages in this state, and cannot maintain the payments, the obvious result is a financial snare....   [tags: Economics, Mortgage, Housing Crisis] 1487 words
(4.2 pages)
Powerful Essays [preview]
How to Solve the Foreclosure Crisis Essay - Presently in the United States millions of homeowners are facing the prospect of losing their homes due to bank foreclosure. An event if allowed to occur has the potential of collapsing not only our financial system, but our social fabric as a nation. The unfolding crisis has prompted the US Government to enact aggressive monetary stimulus designed to reverse the downward spiral of home values. Unfortunately this approach has failed to achieve any meaningful results and perhaps has acted more as a red herring to conceal the real issues causing this debt implosion....   [tags: Economics, Mortgage, Housing Crisis] 1088 words
(3.1 pages)
Strong Essays [preview]
Essay about How to Solve the Foreclosure Crisis - The solution to the Foreclosure Crisis is the implementation of continual, mandatory education classes that must be attended and passed, or penalties will be applied to the homeowners. A little tough love from the lender and the government is necessary. Just as our parents follow through and continue to teach us throughout our lives, so must the lenders and the government take the time to “sit” every homeowner down to make them learn and realize that being a homeowner comes with big responsibilities....   [tags: Economics, Mortgage, Housing Crisis] 1090 words
(3.1 pages)
Strong Essays [preview]
How To Solve The Foreclosure Crisis Essay - Solving the foreclosure crisis is a vital step toward the country’s economic recovery. The sooner America can resolve this crisis, the more rapidly banks will recover financially, home values will begin to rise once more and American citizens will return to work. The purpose of this essay is to provide a viable solution to the foreclosure pandemic. This proposal will benefit the homeowners, taxpayers, businesses, and the financial institutions in America. It will not benefit every household experiencing a financial hardship; however it will enable numerous American families to keep their homes....   [tags: Economics, Mortgage, Housing Crisis] 1935 words
(5.5 pages)
Powerful Essays [preview]
Essay about The Foreclosure Crisis - The housing market should not be seen as separate from personal and family economics in general. To solve the foreclosure crisis, there should be public as well as nonprofit programs and courses in place to educate people and families such that they are motivated to remain economically sustainable and are skilled and supported in managing debt—and especially so if they are current or prospective homeowners. These courses would begin at the high school level and continue through college and adult school at limited to no cost....   [tags: Economics] 1109 words
(3.2 pages)
Strong Essays [preview]