The financial crisis that is currently affecting the United States of America is the result of several factors, including the growing number of foreclosures, all of which converged into a “perfect storm” of a severe magnitude. The end result was not only the exacerbation of the already looming housing crisis, but the overall bleak outlook on America’s financial system. The integrity of the financial system was put into question along with the future of America’s economy, including its once thriving housing market. In my opinion, I think that like all crises that our great nation has faced, this too shall pass. The question is how quickly will it pass? One of the first steps that we can take toward solving the financial crisis is…show more content… The banks will be able to recoup some of their mortgage payments back, while also still owning the deed on the foreclosed property, both of which while receiving tax breaks. This will help the banks to rejuvenate their reserves and it will help loosen up credit to the free market. Once we have credit spilling over into the free market, we will have more spending which will in turn create more jobs and once again, a thriving economy. At the same time, the free market while acting in its truest form will help to create opportunities for those who wish to purchase foreclosed homes, whether it’s for investment purposes, or for their own personal objectives. Another potential bonus is if the banks decide that they would like to participate in the program, but would not like to have all of the responsibility of acting as a landlord. In this situation, even more jobs can be created by the outsourcing of these responsibilities to either another governmental agency or to the private sector. So as you can see, as vicious and continual the cycle can be when it’s spiraling down, it can also be just as positive and encouraging when it’s spiraling up.
Also of note is the fact that those facing foreclosure will be able to keep their homes, albeit in a different fashion. As they were most likely facing sky