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solutions to foreclosure problems
solutions to foreclosure problems
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There is a solution to the Foreclosure Crisis. I do not propose that this is my own answer, but that it is born out of Love. The love for all my family and friends and the country as a whole is the reason for this proposal. Their fates and indeed the fates of our way of life in America depend on what we do at this time in history. The admiration and love for the foundation on which this country was established is an additional motivating factor. Needless to say we can neither turn our backs on all those who have shed blood and even given their very lives for the principles of our America. To allow this jewel of freedom and prosperity to falter and deteriorate would be the most monumental political plunder ever recorded. We can not afford to blow this opportunity.
First we should ask ourselves, why are we giving money to the same greedy individuals that are responsible for the predicament we find ourselves in? If the people must pay this money back, why can they not benefit directly from this economic package? At this point the President fully expects the people to repay the borrowed money through taxes. Through the money changers it seems the citizens of the United States, will be allowed to borrow their own money back at what will no doubt be at ridiculous interest rates. It is the people’s money, for we are the ones who are required to repay the loans. So the citizenry must be permitted to benefit.
In order for this proposal to go forward and be successful there is one thing that is of most importance. Every citizen must acknowledge and accept the realization that we are all aboard the same sinking ship. Our financial fates are inescapably connected.
Now to insure that this concept is given an even chance to survive an...
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Patterson, T. (2008). American Democracy. New York, New York: McGraw-Hill.
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Allowing market participants to begin putting their resources back to work in areas they’d be most beneficial. President Obama’s fiscal responsibility summit last February indicated that he understood the urgent need for fiscal discipline. Congress’s enactment of the American Recovery and Reinvestment Act and President’s proposed budget makes the goals of a sustainable budget and addressing nations longer term fiscal priorities, such as entitlement liabilities, even more elusive. The administrations recently released midsession reviews from the office of management and budget that over the next 10 years the accumulated deficits will total $9 trillion which means that the debt held by public will be a staggering 77% of GDP in 2019. If the debt level continues to grow faster than our economy, the US will owe more than it makes.
This, therefore, is ultimately my solution: Since Americans are ruled more by their appetites more than by reason, and since I doubt that our politicians, because of their love of money, can be trusted to act solely in the interest of the citizens who put them in office, there must be legislation dictating that lenders lend at their own risk.
... main way to fix the foreclosure crisis; education. A concentration on education doesn't mean spend more tax dollars on public schools. I mean increase the quality and target of the curriculum in the schools that do exist. Americans learn of Paul Revere but do they know about Louis McFadden. We learn about capitalism and democracy but do we know how it is sustained. Do we teach and require from ourselves and our children the common sacrifice needed to maintain our way of life. Do we know and understand our rights, not in some superficial manner but in a substantial internalizing way. I think if we did, we would be greater demanders and defenders of such. Property, due process, legal vocational pursuits, and contract rights are such that if not protected, will not only foster more and deeper foreclosure and financial crises, but could end our democracy as we know it.
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. That is where the beginning of the solution lies. Our nation’s people need to relearn the value of patience, therefore we need to learn how to start saving again because although loans may pave a way toward homeownership, it is not valued as much compared to someone who has saved for a home.
Businesses and families borrow money to start up their business, to run their households and this amount has risen dramatically over the last two decades. According to John Miller, “in 1990 the household debt owed by families was 60.2% which has increased in 2010 to 92.5% and the total debt of businesses in 1980 was 53% whereas in 2010 it jumped to 74.3%” (2011, p. 36) Another words our budgets are not any more balanced than our governments without borrowing. Our government has borrowed and put money into our economy in order to try and give our economy a boost into the right direction. Miller states, “In 2008, the U.S. government spent $253.8 billion on expenditures that will boost the productivity of the economy and help to provide the tax revenue to service our national debt” (2011, p. 37) Our high school seniors need to be taught the appropriate times when to spend money and when they should invest to boost their future.
Cabral, R. (2013). A perspective on the symptoms and causes of the financial crisis. Journal of Banking & Finance, 37, 103-117
What the world needs now is Money Sweet Money"; that is not the way the song goes however that is surely the way our world and economy does. Money and its importance relative to the US Government have always been difficult to figure out especially when it comes to interest rates. Due to our Federal Reserve System, its chairman Alan Greenspan, and his Board of Governors dedicated to seeing that our economy blossoms, those doubts have become a thing of the past, for now.
The Committee on Public Debt Policy. Our National Debt : Its History and Its Meaning Today.
...rom falling into debt. People who are entrenched in debt, however, should employ a strategy of cutting down variable spending and putting the extra money towards debt payments. Akin to the proposed balanced budget amendment, this ensures that they lose less and make more money.
As of today America’s national debt is 18 trillion dollars and approximately 5 trillion of that is held by foreign countries including China and Japan. In the last few years we seem to hear more about balancing the country’s budget and politicians raising the debt ceiling so we can pay on this debt. How have we gotten into such an overwhelming and complicated problem with our nation’s money? Ironically the same can be said for our individual household debt as well as making the same mistakes and trying to find creative ways to be accountable to our financial responsibilities. Teaching the basics of personal finance n our schools can culturally change our financial practices, leading to a more financially literate public and a stronger, more stable, America. If the younger generations can become more financially savvy, then there is an opportunity for our nation as a whole to become less dependent on debt to survive.
... country’s political leaders to recognize that the spiraling level of debt is a problem that is likely to impact future generations.