Solving the Foreclosure Crisis and “Wealth and Poverty” by George Gilder

Solving the Foreclosure Crisis and “Wealth and Poverty” by George Gilder

Length: 1092 words (3.1 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

In the bestselling book, “Wealth and Poverty”, economist George Gilder predicts the collapse of the housing market. This book was first published in 1981 and it is simply incredible how accurate his analysis is to today’s predicament. If Gilder had predicted this scenario over twenty years ago, surely there are some solutions already developed. As different ideas and remedies are presented, the one thing to always bear in mind is that there is no quick fix and no matter what option is chosen, the recovery of this nation will take time.

Working at a regional bank has allowed me the opportunity to observe the damage dealt to the American economy firsthand. One major difference differentiates the banks that have failed and the banks that are still in operation. The financial institutions that have survived have and continue to discriminate wisely toward those seeking to borrow funds. One of the main reasons for banks failing was due to loan default. Evaluating the creditor’s history and capacity to repay has become even more of a priority for banks and other lenders. These agencies should continue on this course of scrutinizing loan applicants in order to prevent losses.

Loans should not be impossible to obtain however and for those who already have mortgages, help should be readily available. Lending agencies should consider extending the payback period in order to make monthly payments smaller for the borrowers. Interest will increase accordingly to compensate the lenders for not receiving funds as expected. Decreasing payment size assists the borrower with being able to complete payments on time. Smaller payments over more time will be more practical for people in an unstable economic situation. Instead of standing by and...

... middle of paper ...

... Some places of business offer tuition reimbursement for students attending college. Workplaces should also form a partial reimbursement for employees who are in their first years of home ownership. Not only will this promote home buying, it will alleviate stress for those who already have mortgages and are subject to fall behind on payments. When companies and corporations show their support, people tend to respond positively and we will start to see change for the better.

Falling victim to a foreclosure is devastating. Lives are ripped apart, credit is destroyed, and reputation is ruined. It seems as though all legislation is working hard to amend the damage done to our nation and its homeowners. Red-blooded Americans we are, we will not give up the fight and one can only pray that we see a solution rise out of this pit of despair as we ring in the New Year.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Solving the Foreclosure Crisis Essay

- How to solve the foreclosure crisis. Not an easy question to answer, nor is there a simple solution. I am among many skeptics of the notion that we can truly “solve” this crisis without addressing several systemic issues of the housing market. There is not a single solution to the crisis, but a myriad of different approaches that can collectively remediate the housing market. First, a few short-term fixes need to be implemented urgently in order to prevent the crisis from getting worse. Of priority is stemming the frequency of the foreclosures in the current market....   [tags: Foreclosures, ]

Strong Essays
1123 words (3.2 pages)

Solving the Foreclosure Crisis Essay

- I have always been taught that education is the key top solving almost any problem. The current foreclosure crisis is not any different. There are many reasons cited as to why this crisis happened. Some reasons are obvious whereas other may require inside knowledge of the actual mortgage approval process of individual banks. Greed has been cited by many as the most obvious reason. Greed on the part of the banks, realtors, loan officers and yes even homeowners. Homeowners who wanted to get much more house than they could afford just because someone approved them for it....   [tags: Foreclosures,]

Strong Essays
1061 words (3 pages)

Essay on Solving the Foreclosure Crisis

- In order to solve the foreclosure crisis it is necessary to understand what caused it and how it developed. After September 11th the government was worried that the already present recession would amplify due to American fear and economic instability. The Bush administration and the Federal Reserve established sharp cuts on interest rates to propel the faltering economy. As a result we saw the lowest interest rates in decades. These low interest rates made it easier and more affordable for people to become homeowners....   [tags: Foreclosures, ]

Strong Essays
2115 words (6 pages)

Solving the Foreclosure Crisis Essay

- The foreclosure crisis is a serious problem. Recessions are horrible for society to endure, but when people are losing their homes all around, the confidence in recovery needed to fuel the economy is eroded away until it seems almost hopeless to end the economic slum. Unfortunately there isn’t a simple solution to the foreclosure problem. The best way to solve any problem is to know what causes it. Foreclosure is the result of mortgage loans being given irresponsibly to people that can’t afford them....   [tags: Foreclosures, ]

Strong Essays
1114 words (3.2 pages)

Essay about Solving the Foreclosure Crisis

- Imagine you spent the past ten years putting money into a savings account. One day, you went to the bank, and found out your life savings could only be paid out in Monopoly money. It sounds ridiculous, I know, but that’s essentially what has happened to homeowners across the nation. People have been making their mortgage payments in good faith that one day they’ll have equity they can draw upon … and then one day – poof. - it’s gone. As I looked at the foreclosure crisis from this perspective, I noticed an uncanny parallel to the phenomenon of hyperinflation....   [tags: Foreclosures,]

Strong Essays
1588 words (4.5 pages)

Solving the Foreclosure Crisis Essay

- There is no painless solution to the housing crisis, any approach is going to cost money. But what is money. As the Brazilian song goes, “Money is just to spend.” And that is correct, money is inanimate with no feelings, and no emotions. Money needs no home, but the homeless do have feelings and emotions. Unlike money, the dispossessed suffer. It is far better to spend money than to make people endure any more hardship than they have to. Who wants to live in the street. Who wants to be cold and homeless....   [tags: Foreclosures, ]

Strong Essays
1521 words (4.3 pages)

Solving the Foreclosure Crisis in Low-Income Neighborhoods Essay

- In cities across the United States, the ongoing foreclosure crisis has caused the rapid spread of urban blight. The proliferation of foreclosed properties has consequences far beyond the hardships encountered by families facing foreclosure. Rising crime, unstable neighborhoods, and local budget problems are but a few of the external effects created by an overabundance of foreclosed property. Dealing with such property requires a two-faceted approach by local governments that focuses on acquiring abandoned properties and then creating programs to encourage responsible homeownership....   [tags: Foreclosures, Low-Income Neighborhoods, ]

Strong Essays
1180 words (3.4 pages)

Essay about Solving The Foreclosure Crisis

- On its surface, the current foreclosure crisis appears to have erupted from a volatile mix of debt, deregulation, risk, and over-leveraging within the economy. This; however, is a merely symptomatic approach to the recession, and does not address its underlying causes. In order to truly solve the crisis of foreclosures, one must address the systemic deficiencies which allowed the crisis to originally form. In the housing sector, the foreclosure crisis can be viewed as the bursting of the housing bubble....   [tags: Economics]

Strong Essays
1280 words (3.7 pages)

Solving the Foreclosure Crisis: Not the End of the Problem, but the Beginning of the Solution

- Our nation today has become spoiled with instant gratification. Loans and the borrowing system have given the idea that patience is no longer a virtue and that saving is no longer necessary. Material wealth is increased, but so is the idea of false wealth. People have become so bloated with it; therefore they take on more than they can afford. That is what has happened with our nation’s recent wave of foreclosures. Loans have led everyone to believe that they can own a home and it has omitted the practice of saving....   [tags: Foreclosures,]

Strong Essays
1079 words (3.1 pages)

Essay on Proposed Methods for Solving the Foreclosure Crisis

- The media has cast the shadow of blame for the Foreclosure, on several different sources. The first of these sources is the mortgage banking industry itself. The reason being it’s poor credit underwriting. Wall Street is also in the shadow of blame for its collecting these loans and then selling them on Wall Street. And of course, the borrowers are also largely to blame for this catastrophe. They buy properties hoping to flip the houses for a great profit due to the increasing property values. The Obama administrations have tried multiple refinance programs to reduce the amount of defaults, such as, Hope for Homeowners, and Secure for the Delinquent Borrowers....   [tags: real estate]

Strong Essays
1537 words (4.4 pages)