Solving the Foreclosure Crisis: Require an Economics Class to Graduate High School

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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. The basic economics or government class that is now required would also need to cover a basic understanding of money management, personal finance and of course mortgage laws and vocabulary. This would give each person who graduates high school a foundation of knowledge in the management of finance and understanding the problems associated with overextending ones self in their personal finances. However, this education does not need to wait to begin in high school in could be incorporated in the basic math lessons, history lessons and reading assignments. Education is the key to ensure that this does not happen again. Once we make sure the American people are educated and are held responsible for any transactions that they sign for then and only then can we make the mortgage business strong again. After addressing education and personal responsibility we need to look at the real cause of the mortgage crisis. The first thought that comes to mind is greed. The more mortgages approved, the higher the dollar amount the more commission was made. Now, it is time to hold these banks and or mortgage companies responsible for the misinformation that they gave to people when ap... ... middle of paper ... ...anks need to take responsibility. They earned a lot of commission and revenue on these loans and if it costs them the money they earned, well then that is a lesson learned. Continuous monitoring of banks and loans is going to be required until we can ensure that they follow the more strict and stringent guidelines for loans. Last but not least is education. People need to be educated in money management, financial management and understanding the consequences of over extending themselves. As a country we do need to make all of these changes then the housing crisis would be a distance memory in the consciousness of the American people. This may not be the perfect solution and it will not eliminate all of the problems, but if the United States of America were to adopt this then it would greatly improve the situation.

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