Solving the Foreclosure Crisis and Greed

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There is a perfect storm brewing in America that could ultimately destroy our economy, as we know it. The storm envelops four massive financial areas essential for a stable economy including: home foreclosures, bankrupt businesses, double digit unemployment and runaway inflation. These storms have been formulated by greed from the highest government levels, continued down through the corporate level and ultimately joined in collusion by greedy investors and uneducated buyers. All parties hoped to cash in on a skyrocketing real estate market.

The foreclosure crisis in America began with a chain of events that has depreciated home values across our nation and added to an already suffering job market by increasing unemployment levels. Before this dramatic escalation developed, many investors who turned houses for a profit were busy fixing multiple properties. They were buying new construction materials, fixtures and supplies from retailers. They were also employing contractors, and handymen to repair or renovate these homes. As the housing bubble inflated homes beyond their value, many home owners with substantial equity, sold existing homes for large profits, and then hired contractors to build the homes of their dreams. There seemed to be a shortage of workers and homes to keep up with the demand, as new homeowners (mostly first time, sub prime borrowers) flooded the market. Everyone wanted a piece of the American Dream, Americans as well as immigrants.

An influx of immigrants from all over the world kept the buyer’s market flooded for existing starter homes. Unfortunately, a side effect occurred in a job market overwhelmed with cheaper labor competing for existing jobs. This negative effect caused a lot of hard working, higher ...

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...h higher interest penalties, late fees, and other excessive charges has never solved a creditors collection problem

There is no single answer to solving the foreclosure crisis. All these problems must be addressed and resolved. Lenders, as well as the government, should read the writing on the wall and plan ahead by retaining larger numbers of paying customers. Unemployed people cannot pay mortgages or taxes.

Individual, working taxpayers and thriving businesses are the only hope for solving this problem. Reduce taxes, institute a flat tax or a fair tax as a consumption tax, and abolish the IRS. The tax burden cannot be absorbed only by the few, while the many enjoy the benefits. Without income from taxes by all consumers and thriving businesses employing the masses, we are only increasing the debt and feeding the strength of the coming Economic Perfect Storm.

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