This essay shall not be like any other you receive for this competition. The others will seek to impress the judges, and use whatever means they find necessary to do so. I choose to be honest in this essay, and tell answer the question posed with full justice. The answer I give to you will be the one which I know to be best, with all of the knowledge that I possess. With this little disclaimer, I must now move on to answer the question posed: how to solve the current crisis of foreclosures. The solution is simple, effective, and proven: get the government out of the market.
The erosion of the housing market began with the creation of government run institutions like Fannie Mae and Freddie Mac. These institutions relied heavily on governmental funds and grants to operate, and even heavier on the insurance provided by the Federal Deposit Insurance Corporation, or FDIC. With the help of these government fallbacks, they engaged in irresponsible lending and questionable loan practices. People who should have never been able to qualify for a loan before were now able to do so, because someone sitting in Washington decided that everyone was entitled to a home. Fannie Mae and Freddie Mac have failed, and the citizens of the United States have now inherited a five trillion dollar debt. Thank you.
Yet even before the creation of this program, a bigger problem was started in the midst of Washington. I hinted at it just above, and it is the belief that everyone is entitled to home, which is to be provided for them. This is false and irresponsible economically. True, everyone on this earth that can call themselves human has the right to own a home, but the not for one to be provided for them. They...
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... sacrifice of even another man. This is no way to run a society, and no way to expect a productive civilization to live.
Foreclosures happen because the banks need to get back the value which is owed to them. They may have committed the first injustice of irresponsible lending, but the regulations put on them to make them do this are the only fault. The government is entirely to blame for every foreclosed home, and will be for every other one until they realize that government and economics are not in the same sphere of study, nor does one have any authority to effect policy in the other. The solution I provide for the banks: Foreclose on government intervention, and lobby for a better business environment. The solution I provide for President Barack Obama and Congress: Get your hands out of the economy, and allow your citizens to live their lives productively.
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