In the housing sector, the foreclosure crisis can be viewed as the bursting of the housing bubble. Indeed, the economy as a whole around the turn of the millennium can be characterized by its bubbles, and any solution to the housing bubble must necessarily take into account the complex web of interconnections between each and every economic sector. The common denominator, connecting the housing, credit, and financial markets with both the people and government is the dollar. Being a fiat currency, the dollar is backed only by faith in the United States government. Because it is not pegged to any standard, the Treasury has free reign to create as many dollars as it wants. This, in combination with the commercial banks' intrinsic ability to create money through the interest generated on their loans and investments, serves to thoroughly destabilize the money supply, which is now capable of huge increases in short periods of time. New money introduced by the manipulation of the money supply and circulated largely through a "shadow" banking system of corporate entities specializing in over-leveraged, high-risk securities is largely responsible for fueling economic bubbles. Illusory wealth created by financial acrobatics and not tied to any real growth in GDP yields convenient booms; however its busts are reoccurring crises. Alt...
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... more substantial. This void has been in the making for quite sometime--perhaps it began with the Nixon shock, but it definitely accelerated with the loss of manufacturing and increased outsourcing during the Reagan years, and hit a feverish pace with the Clinton's NAFTA and modern globalization. During these past forty years, an economic drama has unfolded, one in which the middle class has found itself to be the main loser, and the foreclosure crises is the latest in this series of events which have chipped away at the security of the middle class. Now we must alter the course of this historical pattern, and in doing so alleviate the current crisis. The development of a Graduated Energy Standard will both purge the market of its worst practices, those which caused the current crisis, and the put the market on track to avoid similar developments in the future.
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- The foreclosure crisis is a very sensitive issue that needs to be acknowledged urgently. This particular issue has put a lot of people in danger by losing their homes. When being in a predicament like losing one’s home it is all about responsibilities. Once a person has been notified that their home is in the process of foreclosure and they only have but so little time to pay their mortgage, this is when compromising comes into action. It is imperative that needs come before wants when in a position of foreclosure.... [tags: Foreclosures, ]
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- Throughout history Americans have experienced many different crises. Today, one of several crises that are affecting the United States is the foreclosure crisis. I believe Americans are experiencing the worst foreclosure crisis of all time. The foreclosure crisis has been brought on by numerous factors, such as the state of our economy, job loss, and taxes, not paying mortgages, and lastly, owing the IRS. December 2007 is when Americans started to face some tough times. Many people were losing jobs and being laid off.... [tags: Foreclosures,]
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- 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,]
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