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Foreclosure crisis in america
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During the time of this economic crisis, many people are foreclosing on their homes because of inflation in the housing market. It is said by the Mortgage Bankers Association that one out of every 200 Americans will have a foreclosed house. In America, that is a lot of homes that are unoccupied. In this time of crisis, there needs to be a way so that people can stay in their homes for just a little bit longer to conjure up the money to pay off their bills during this recession.
Today, millions of Americans are suffering lost jobs and cut hours because of the recession. Because of this loss, those people cannot afford the monthly bills the bank sends out for mortgages, therefore making people foreclose on their homes. A home is where people live, cook, sleep and sometimes work. If that is taken away, their lives are taken as well. The foreclosure crisis needs to be solved.
One possible way to solve this crisis is to teach Americans how the economy works. Without an education of what is going on, people are clueless as to what their money is going to. Some people excessively spend money on things that are not needed, and because of inflation, their money quickly is gone. Educating people about how to use and store their money and how the economy works could help the crisis. It should scare people that inflation is occurring and jobs are being lost. Sooner or later, those people who spend money mindlessly could be living with a family friend or even out on the streets. I believe learning helps people to do what is best for them because they learn from past mistakes and possible future outcomes.
Another way that could solve the crisis is to have the banks modify all loans and lower interest rates to whatever it takes fo...
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...ecting not only those who are foreclosing, but the nation around them. It leaves open space that could be used and wasted money sitting on land. The banks could be making more money if they do not foreclose than if they do. Giving people opportunities to pay off their mortgage helps America as a nation and helps people grow and learn from their previous mistakes. Giving people rights to their property and then taking it away because of unemployment and possibly excessive spending makes our nation looked down upon. In the constitution, we have rights as citizens to many different things, and that includes property. Taking away property, or foreclosing, is against what the ancestors of our time have said. By using any of these plans could help our nation become a more positive place and people of those circumstances can grow and influence others to do what is right.
-1. How could the Federal Reserve prevent and solve financial crisis? – The function of Federal Reserve.
If the Federal Housing Authority (FHA) and the United States Treasury Department would implement some radical new programs to help the people affected by this crisis, not the companies responsible for it, the FHA could turn this crisis into an opportunity to help.
To solve the foreclosure crisis we must take a multi-pronged approach that tackles the issues making the situation worse and that caused the problems in the first place. Our goal is to do this in an efficient and time conscious manner. Any solution is going to have its positive and negative aspects but we must try to maximize the former and minimize the latter.
...t want more CDOs on their balance sheet in return. This panic caused the Crisis.
While no one likes the idea of turning people out of their homes, when you buy something you can’t afford, you have to return it. When you make a bad business decision, you have to take the consequences. Capitalism doesn’t work when there is no downside to risk – that downside is there to make sure that the system works properly. The most sensible, soundest and, ultimately, kindest solution to the debt crisis caused by the real estate bubble is foreclosure – expedient, easy, simple foreclosure. This is the best way for the housing market to grow again, which in the end will give people the opportunity to enjoy the piece of mind that comes from knowing they own a home they can afford and can really call their own.
In essence, the problem leading to the foreclosure crisis is the recent decrease in people’s ability to make their loan payments due to job loss and lower wages brought on by the economy’s weak state. Rather than throw billions of dollars at big banks in the hope that they find ways to help the homeowners’ loans, the government should attack the problem through the individual. Simply, the government aid being spent in the hopes of stimulating the economy should be funneled toward reducing the balance of home loans to make the monthly payments affordable for the owner. By funneling the government aid directly to the American home owner in need, the economy would greatly benefit as homeowners regain their footing with their budget because the economy and foreclosure are directly related. When one hurts, so does the other; when one prospers, the other does as we...
Financial crises are a constant theme through generations. People can lose all their savings and somehow the richest 1% of the country will stay above the cumulative distributive mean of average earnings. It seems that everyday working middle class people are effected through these catastrophes losing all of their savings and future generations are now forever. Through evaluating the similarities and differences between the Great Depression of the 1930’s and the Great Recession of 2007/2008, we can learn how future financial crises can be avoided.
Which leads us to the million dollar question, what is our government doing about the crisis? Our government has just began to take a stand. This crisis needs attention brought to it and people need to take a stand. Enough is enough, it’s time we stand up and end this crisis. This crisis hits very close to home.
All of those bad loans and bonds are now becoming subprime mortgages and at alarming rates, the big banks and even smaller banks are targeting people who can’t afford them and other members of the working class. They began to persuade them in with low interest rates but with only the intention to hike up the prices after a short grace period. The worst part about this hole dilemma isn’t totally about loans themselves either, it’s about the people who are being taken for a ride. The people paying for these loans
... should device ways of eliminating the causes of global financial crisis so that the effects of this crisis may not be experienced again in the world.
Foreclosure in America has been a rising and prominent problem recently, and has destroyed many Americans hopes and dreams. Over 2.3 million homes were foreclosed in 2008, and an estimated four million homes will be foreclosed by the end of this year. Despite the efforts of many banks and lending companies, over half of homes will foreclose that have received their help. I believe that we have only started in the right direction in solving the foreclosure crisis. Giving money and lowering mortgage rates will help, but I believe we should find out why Americans are in this situation in the first place. We are being too stereotypical when we think the only reason someone is foreclosing is because of irresponsible payments or buying a home out of a person’s capabilities to pay for it. If we understand their situation, we will be better enabled to help and solve their crisis.
Credit card interest rates need to drop so mortgages can get back to where they were. It is more expensive for the people, but it would compensate for credit cards. The foreclosure crisis has no simple solution since so many things affect it, but fixing each thing one by one will help. Incentives for people to buy are fantastic ideas. The $8,000 tax credit for first time homeowners is a good start.
This paper provides an overview of the crisis, outlines the major causes of the crisis, examine alternative solutions to the problem
In a nutshell, debt crisis should be treated immediately with actions such as providing sufficient training and courses, improving individual’s personal finance skill, and filtering the recruiting of employees’ process in order to prevent it from extent. The upcoming generations should have given more awareness towards this issue. If no immediate actions are taken, I believe in future the debt crisis will get worse.
In 2008, the world experienced a tremendous financial crisis which is rooted from the U.S housing market. Moreover, it is considered by many economists as one of the worst recessions since the Great Depression in 1930s. After bringing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It ruined economies, crumble financial corporations and impoverished individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers and AIG. These collapses not only influenced own countries but also international scale. Hence, the intervention of governments by changing and expanding the monetary and fiscal policy or giving bailout is needed in order to eliminate and control enormous effects of the financial crisis.