The implications of the housing crisis determines a lot of the future of America. If this situation is not resolved, it could result in drastic changes to the future of the world. Because of the gravity of this issue in relation to the world market, a lot of countries could be affected by the unchanging conditions. Not only would it affect the world, it would most importantly affect many different aspects of America. Unemployment, the economy, education, almost everything can be tied to the improvement or continual regression of the housing market.
If the housing market improves, people buying houses on good credit, less and less foreclosures and evictions, contractors building a fair amount of houses based on demand (not oversupplying) and a whole lot of other conditions, the American economy will improve along with it. In many cases, if the housing crisis improves, that will have meant that the economy has already improved. For example, employment might be going up, which results in more money for people and families, which might result in a higher demand for houses and real estate.
If the housing market declines even further, the issue will continue to be debated and argued over. Should government intervene and take a strong stance and action on the situation? Or should they allow the market to naturally come to a healing point and fix itself? This latter option is one that many economists, government officials, and consumers are scared about. If the situation does not improve, if foreclosures grow, houses decline in value, defaults and mortgages can't be paid, America will see very drastic changes. Loss of homes will lead to even more unemployment and companies going bankrupt (housing contractors, construction companies, interior designers, real estate agents, etc). An unimproved housing market will indefinitely result in a dire future for America, and the world at large.
The housing crisis is such a complex and sticky issue, not that any economic difficulty is easy to deal with. But I agree with your assessment and prediction. It is obvious that you have done much research into this topic, for your post is excellently constructed.
ReplyDeleteThough I want to expand on your analysis on the web-like intricate problems that challenge the American economy. Could you further explain the "ties" you see between the housing crisis and other factors that have played a roll in the tanking American economy? Do you think that the reshaping cultural behaviors (laziness brought on by long-lasting prosperity) and globalization have also twisted the housing issue and American recession?
This post surely contains some alarming implications. I had not previously considered how housing affects unemployment, education, the economy, and other markets. It seems that instead of letting the market run it's course, the government needs to step in and regulate. I'm not sure exactly what can be done about the issue, but it is clear that SOMETHING has to happen before we see a devastation in the housing market
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