How the Free Market Can Get Us Out of the Housing Crisis

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Recommended: Does history repeat itself

Mortgage, a term that comes from France in the 17th century, by a man named Sir Edward Coke. The term is broken up into two parts, mort meaning dead and gage which means pledge. The term implied that if the mortgagee could not fulfill the pledge to pay off the mortgagor than the deal was dead and the land was taken from the mortgagee. Just as they faced these problems in early France we see history repeat itself today. In my opinion the downward spiral of the housing market will not be solved by more government. We have seen other incidents in the past when the housing market along with the economy has taken a turn for the worst. My plan will show that the free capitalist market can get us out of this crisis and back on the upward track. In this paper I will tell you how we can get out of this by using not only our own market but also some assistance from foreign capitalist markets and I will also outline how we can prevent this from happening again.

During the Great Depression the housing market fell with the rest of the economy. At the beginning of it the government thought that their intervention would help it but it only stayed at the same level if not worsened. We saw many emergences of new jobs throughout and after World War Two which then helped people to be able to invest in real estate again. We are not in the same situation but we can be soon if continue the same approach that we have been taking on it. We have even seen in our modern day that government intervention only hurts the situation. When the house finance chief Barney Frank and SEC chairman Christopher Cox attempted to regulate Fannie Mae and Freddie Mac, which are two government mortgage lending organizations. Their attempt to regulate them failed miserably ...

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...n a good position is people taking responsibility for their actions. They have to be able to determine on their own if they can afford a house or if they should think of a cheaper option. Once they sign their name to that loan agreement that makes them responsible. They should know what they are signing before they put their signature on it. I would personally suggest having a lawyer read it over but if a person does not want to spend the money then they should read it over carefully themselves. If this plan follows through we should be able to contain a strong housing market.

In conclusion, I have outlined a plan of how to get out of this downward swing of the housing market and how to stop this from happening again. If we work together we can solve this in our great capitalist system. I hope that once we get out of this crisis we will not see this happen again.

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