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

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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...


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... 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.

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