Helping The Nations Economy From Experiencing A Housing Market Disaster

Statistics shows that due to foreclosure murder rates, homelessness, and vacant properties has increased dramatically this year alone. The financial crisis is affecting the health of the economy and is fueling in recession.. This has created much problems

There is by no means a simple solution to solving the home foreclosure epidemic but there are many changes that can be made to help Americans across the globe. The first, I believe starts

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

In Conclusion, the world is not what it used to be. The government is eventually going to control the whole world and nobody will have a say on anything. The housing market is slowly coming back up, but are the people going to be able to get a new home and afford it later down the line? The United States is not promising that it will not get back into another recession so the person better only hope that they have a safe, secure job. The Affordable

The U.S. government borrows large sums of money in times of national emergency, such as times of war. The U.S. entered many wars that greatly contributed to the national debt. The government also engaged in multiple social programs that increased the debt, such as the bailouts during the housing crisis in 2008-2009. To keep the economy from collapsing, the government borrowed enormous amounts of money. Half way through this housing crisis the deficit exceeded one trillion dollars. The deficit decreased to under $500 billion after the massive spending cuts deal in 2011.

The housing crisis in America is a major problem plaguing the United States' economy. Before a solution is formulated, one must consider the history of the market and the causes of the problem. And after a solution is formulated, one must present an idea for prevention of the problem for the future.

We now know that we have the power to prevent another financial crisis in the future. The oversights of many different groups all led to the chaos of 2008. Looking back, if one or two of these institutions had changed their practices in response to red flags, the growth of the housing bubble could have been dramatically slowed, or even fully prevented.

What I find ironically funny is the statement quote used for this essay topic, “Those who do not learn history are doomed to repeat it”. This is something our government needs to take heed to, because they are the ones repeating history. Right now as we speak banks are again selling houses to people that cannot really afford the payments, they are signing contracts without reading the fine print of the balloon rates that are going to make it impossible to keep their

For the last several years, the one issue that has been bringing the United States into a state of trouble that it has not been seen since the great depression has been the monstrous Foreclosure problem. Thousands of people have lost their houses. Thousands of people have faced the dangers of debt and chaos. Thousands of people lives have been ruined because of the mistakes that Americans have done in this nation. In order to solve the problem, one must take a look at how it started and how this depression began. Around eight-nine years ago, the market in housing caused many people to chase after it. This caused a mistake of creating a domino affect that has hurt banks from lending out the high amount of money to people and finding out

In unison with freezing foreclosures, new jobs need to be created. The President needs to work with Congress, and leading experts to set up a work program in which tax-dollars trimmed out of the budget are allocated to the Refurbishing of American Infrastructure. Our roads and bridges should be repaired, our water and sanitation systems should be made state of the art, and significant incentives should be given to private companies to build Nuclear power plants and windmill arrays across the nation. All these things are fully feasible, and would provide jobs for thousands of unemployed Americans.

The foreclosure crisis in America has impacted everyone- even those who don’t own homes. Our nation is currently struggling with high unemployment, a relatively illiquid credit market, and a deficit that raises serious concerns about the value of the US Dollar in the not too distant future. With interest rates already at historic lows and the government pursuing an unprecedented policy of quantitative monetary easing, options for government intervention are limited. While there is no simple solution to this problem, I think that we must look at the reasons the housing market went into crisis, and based on that develop a regulatory system that will allow us to avoid another situation like this in the future. If Americans believe

The demand for houses, along with a belief that home values would continually soar, fueled the building boom that would eventually result in our demise. Once the grace period on mortgage loans ended, and house prices began to decline, many people found themselves unable to escape the high monthly payments and began to default. Increasing foreclosures continued to lower the prices of homes, by 2008 it was estimated that 23% of all homes were worth less than their mortgages. 2.9 million vacant homes later, it is safe to say the consequences of short-sighted expenditures were severe. Since then, more than 6 million Americans have lost their homes to foreclosure. Much of the blame for the housing crisis can be traced back to rumor in the stock market. While homes are not typically viewed as investments under speculation, statistics show that this was not the case during the mortgage crisis. 22% of homes purchased in 2006 were for investment purposes.

Free market indicators of the housing market have many economists thinking that a housing recovery cannot survive without government support. Yet the real 800 pound gorilla in the room that no one is discussing though is that the government is really not in any position to help support a housing recovery. At present, the Federal debt is approaching almost 100 percent of GDP and the Federal Reserve continues to maintain interest rates at a 0.00 rate. This means that the resources are very limited that are available to the government to help support a housing

The 2008 housing market meltdown in America created a ripple effect that had a negative impact on multiple real estate and stock markets throughout the world. Also, many people who were investors in the America market have never recovered from this financial disaster. So, one must contemplate how this event could have transpired in a country with such a strong economy with governmental regulations designed to protect the average investor. Nevertheless, it is simple, it took brokers, real estate appraisers, realtors, Wall Street, and mortgage companies combined unethical behavior to allow greed to be his or her guidance in pursuing wealth form unsuspecting new home purchasers who could afford his and her recent purchase, a new house.

The Big Short is a movie that discusses the housing market crash in 2008. As you may know, the banks, the mortgage brokers, and the consumers were all affected by this collapse. On each level of the system, there were things that went wrong and that could have been changed that could have prevented the failure of the housing market.