Solving the Foreclosure Crisis

1198 Words5 Pages
Solving our country’s foreclosure crisis is both simple and complex. It has been my belief that I, and all people, must learn from history or be doomed to make the same mistakes others have made. This foreclosure crisis is not new. It has happened before and was solved and stopped by wise and strong action. It is those things that we must look to now to find the answers and bring an end to the financial problems we face today. In this paper, I will attempt to use the examples of others to find the answers we need.

“In this current crisis government is not the answer to this problem, government is the problem,” Ronald Reagan, “Money is at the root of all evil,” First Timothy 6: 10. “Power corrupts and absolute power corrupts absolutely,” William Pitt.

In 1977, President Carter signed into law the “Community Reinvestment Act” or the CRA, to make banks and loan organizations end the practice of, “redlining,” targeting only wealthier neighbor-hoods with their services. The purpose of the CRA is to provide credit and home ownership opportunities to underserved populations and commercial loans to small businesses.

The number one cause of foreclosure is negative equity, when the value of a house is lower than the amount of a loan. Number two is unemployment. After these risky loans were given out, it wasn’t long before, because of high taxation and government regulations, that the economy went into a recession that caused double digit unemploy-ment, double digit interest rates, double digit inflation, negative equity and foreclosure. The people who were hurt the most by this were the ones that the bill was supposed to help, the poor.

President Reagan, true to his promise, lowered the taxes and business regulations that had...

... middle of paper ...

...e price of medicine sky high. I can’t blame them for wanting to seek a better life. The real problem is the people who hire them. Drug cartels make millions of dollars and pay them very little for the dangerous work they do and people here will hire them and pay them next to nothing.

ACORN, SEIU, the TIDES foundation and their affiliates should be investigated and put on trial for tax evasion, illegal political donations, voter fraud and extortion.

A strict code of ethics for all elected officials needs to be implemented and enforced in every branch of government regardless of political party.

The way to stop the foreclosure crisis is the same now as it was in 1980, a robust economy. The things I have listed have worked in the past and they will now. As Ronald Reagan said years ago, “Government is not the answer to the problem, government is the problem.”

More about Solving the Foreclosure Crisis

Open Document