Thomas Jefferson once stated, "If Americans ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children will wake up homeless." Although Jefferson’s accusation seems ludicrous at first glance, today’s foreclosure crisis lends itself well to such resonant words. The current disarray of the United States’ economy and housing market is terrifying. With banks going bankrupt and fewer Americans being able to pay their mortgages, the question must be posed: how will we ever survive this foreclosure crisis in America?
An economic plan that will first stabilize, then elevate, the housing economy is necessary at this time. Stabilization is key. Without a decent foundation, any fine plan is destined to fail.
To stabilize the housing market, the United States first must face the problem of citizens in danger of losing their houses. Those citizens who meet several criterion shall be allowed to "squat" on their own property for one year. Section one of the fourteenth amendment to the United States Constitution support this proposition:
All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.
The third clause of the first section deals with the deprivation of life, liberty, or property without due process. When the banks were bailed out earlier this year, due process was not upheld. Why did major banks have the ability to bypass due process of their state when they were bailed out by the government while American families must humiliatingly file bankruptcy daily? Because the banks were so readily bailed out, it is only fair that American citizens be able to squat on their own property for one year before foreclosing on their home. This one year grace period allows for the homeowners to secure funds and possibly avoid foreclosure.
Avoidance of foreclosures is the first step in stabilizing the economy. Next, there must be an attempt to elevate the housing market.
As former President Jefferson warned, bank control of the economy is not helping the current crisis of foreclosure in America. With bank executives having so-called ‘guaranteed bonuses’ in their already lofty salaries and corruption among the banking and housing industries, it is nearly inevitable that foreclosure is so common.
The first step on the road to recovery is to start fresh within the banking industry. Any banks having received bailout money must be required to produce complete accounting histories from the past three years, including salary...