Essay on Solving the Foreclosure Crisis

Essay on Solving the Foreclosure Crisis

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This foreclosure problem can be seen as an opportunity to solve more than one problem and help to stimulate the economy. Each foreclosure affects us all via the economy, since each foreclosure is a symptom of a decreased flow of assets within the economy. This flow of assets within the economy is what is generally responsible for growth or the lack of it. The flow of assets is directly related to the availability of funds/money. Currently there is a lack of both the flow of assets and the availability of funds. I believe this is because there are limited choices for individuals over a large portion of assets combined with no relief in times of financial difficulty.

The question is where to obtain these funds in order to make them available for individuals and increase the flow of assets to stimulate growth in the economy? Individuals do not have the resources, financial institutions are stretched to their limits, and the government is already overburdened with the current economic difficulties. Therefore, it is necessary to think creatively or at least with an open mind in order to solve the foreclosure problem and to prevent further economic crises.

My proposal may seem radical or reasonable depending on your point of view, but it does solve not only the foreclosure problem but will relieve another financial problem that is on the economic horizon. My solution involves the use of the Social Security Administration (SSA) retirement funds for individuals, financial institutions and the government/treasury.

The financial institutions need available funds to provide foreclosure candidates relief, but as I mentioned earlier there is a decreased availability of funds currently. Therefore, individuals who are fore...


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...for other loans and investments. This is a win-win-win situation for individuals, financial institutions, and the government. People are given choices over their impending diminished government retirement payments and foreclosure candidates are given time and options to solve their problem. Financial institutions profit from the being the middle-man in these multiple transactions, plus the government provides fiscally responsible solutions for two problems (the current foreclosure problem and the future potential SSA retirement funding problem). In essence, one government debt is traded for another, but with availability of funds generated by the increased flow of assets within the economy, which would stimulate economic growth.

This solution is not risk free, but it does provide for a better alternative to what we are presently facing as a nation/economy.

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