The Growth of Solid Investments and Solving the Foreclosure Crisis

1010 Words 5 Pages
Solid investments grow. This is obvious, I know, but it lies at the heart of my solution to the foreclosure crisis. Housing is normally a fairly solid investment, and a temporary downturn has caused thousands of Americans to resort to giving up their investments, their homes, in order to feed themselves. Allowing these people who have done nothing wrong, but are merely victims in a crisis, to give up their investments for less than the actual worth or even for less than they bought the property for can only make the economy worse and strain already overtaxed welfare systems. Volunteers and charities have been chipping in, working as much as their poor overworked bodies can endure. It is not enough. The tax cuts under President Bush, TARP, …show more content…
This direct help could be implemented in a few different ways. The first implementation is the easiest to work out some basic numbers on, though may be a tough sell to state welfare proponents. Direct payments from the federal government to homeowners who would otherwise have to file for foreclosure would be no small help to the people. RealityTrac's “2009 U.S. Foreclosure Market Report” demonstrates the severity of the problem in its claim that one in every four hundred forty homes filed for foreclosure in February 2009. According to the website, the median house price in America for 2008 was $232,100. All of the following math is conducted assuming the government would need to bailout the average person for the entire 232 thousand dollars, which is a safe overestimate of the actual price to the government. Two hundred thirty two thousand times one in four hundred forty results in approximately five hundred twenty-seven dollars. This is what a direct, property-bailout on the middle class of America would require in taxing per person. Taking the 305.5 million person population estimate and multiplying it by the five hundred twenty-seven dollars results in a total cost of approximately 16 billion dollars. This initially sounds to be a substantial amount of money, but the benefits it offers have to be weighed. The most obvious

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