Proposed Solution to the Foreclosure Crisis

Today’s America is in crisis; we are in a recession. The greatest factor driving this major recession is Foreclosure many Americans are forced to face every day. In simple terms, the foreclosure crisis was caused by greed in the banking industry and too much optimism of the American people. This resulted in a bubble of subprime mortgage lending, which eventually collapsed once leading mortgage firms in the banking industry such as Fannie Mae and Freddie Mac needed to be bailed out by the government. A great panic was caused in the Stock Market, resulting in job losses and companies going out of business. Mortgage was unable to be paid, thus causing foreclosure on many houses.

The foreclosure crisis has not only caused the banking industry to lose Trillions of dollars; it has also played a role in decreasing home value on an international level. Despite the Obama Administration and Congress having taken many steps to stabilize the economy, like the Emergency Economic Stabilization Act of 2008, Wall Street Reform and the Consumer Protection Act of 2009, America has not seen many concrete results. But we must not lose hope. There are still several ways to solve the foreclosure crisis.

Proposed solutions of great magnitude can sometimes be very liberal or very conservative, but on issues like the one we are facing currently, only a moderate solution can work because of its ability to satisfy both parties. It will act as a solution and at the same time be supported by the majority of U.S. citizens, giving it greater stability and increasing its chances to work as a long term answer to the crisis. To solve the foreclosure crisis, it’s important to tackle the problem in two steps: “stop and prevent”. The “stop” solution would accou...

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...isis is one which most people agree on. The solutions that I proposed today are very moderate because they consist of some liberal as well as conservative ideas. The ideas that I have proposed can be broken down into sections, and even hold the capability to be modified. These ideas are flexible, but with any changes, no matter how drastic, we must keep in mind that the base structure of my proposal is what will result in its success. To dig our country out of this hole that we know at the foreclosure crisis we must work together and combine ideas; if they work we keep them, and if they don’t we replace them. President Lincoln once said, “failed, failed, failed, and then persistence passed on”. There have been numerous failures that lead to the foreclosure crisis, but with great enough effort I think persistence will result in a solution that will pass on in time.