During the conflict with Vietnam most of the American public wasn't even sure why we needed to send so many of our troops across seas. In past conflicts everybody had a side and wanted to support their decision. However with the introduction of the Vietnam conflict a large majority of the population was asking questions on why all this came up so sudden and for unknown reasons. When Japan attacked on the United States this came everybody the morral they needed and the reason to want to defend their country. However Vietnam was different in that the draft made most of these young men not even want to join the military and most were forced to support our country. How can you expect these men to be in the right state of mind after having to fight for unknown reasons? You can't expect somebody to change any of their morals and leave them asking questions. However having this common bond with the man next to you would really make feel to have a bond and want to help out the others who are in the same situation as yourself.

  Kyle Ouellette                                                                                                               1

  Professor Wallace

  English 1a-4

  April 27 2011

                                                    Fixed Finance?

                              

         It is very hard to say one person or one corporation is responsible for the major

global economic issues. However there are a few corporations and people who have

created major issues that have impacted the world in a negative way. Most future

homeowners will be provided a 30 year fixed mortgage. A large percentage of these

prospective buyers will be offered a loan which is more then they can pay due to the lack

of income. This would either require very difficult financial times or it would cause a

large number of homes to be foreclosed on. If such a large number of homeowners owe

the banks money in loans, this means the banks have a large portion of their value to be

based on the value of these homes.

           If such large numbers are walking away from these loans the value of the housing

market will crash. When the banks sell these houses they will usually will sell the house

in a “quick sale”. This means the banks won’t find the highest bidder on the house. They

won’t put the time, money or resources for finding a new suitable homeowner that should

have purchased the house in the first place. This means the houses are sold for a very low

price and brings the market down in a hurry. Investors who paid for multiple years on

their mortgage bring many issues. When the market value is declining a house can lose a

major portion of its value in only a few years. If these homeowners refinance or get

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equity out of their loan this means the profit margin is going to be made up for if the

homeowners that just walk away. This is often the case if the economy is doing very well  

and the housing market is on the rise. If somebody has taking equity out and then walks

away and the house becomes foreclosed on, the banks are forced to do what the can t

make a profit. However this more often the not requires the banks to rely on the

government for financial assistance. This being on such a large scale will cause more

then just the bank to be affected by their wrong doing.

                The banks don’t even try to work out some agreement with the investors that

they provided the loan to. The banks will only contact the homeowners to tell them that

their house is going to be foreclosed on. The banks don’t come in contact to try and work

something out with the homeowners with these unrealistic loans. Would we not be in this

major financial crisis because of this?  It would be difficult to say this is the reason for

the recession. However the banks are a major factor is our economy and if it does well or

not. Maybe it’s our greed or not being able to settle for less that got us here. According to

Alejandro Lazo who is a Los Angeles Times Staff Writer stated that “The Standard &

Poor's/Case-Shiller index for 20 major U.S. cities, released Tuesday, showed prices dropped

3.3% from February 2010 and 1.1% from January amid weak demand for abodes and as

foreclosures and other so-called distressed properties made up a large part of the market”.

Nobody ever said that we all need to get a loan that is the most possible that we can

afford. These are the type of ideas that are instilled in us at such a young age. Most of us

          

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live in a house that we don’t use all the rooms. We really don’t need to have such large

houses or live in such nice areas. On the other hand it really is the banks responsibility to

make it clear on what kind of loan you can afford. There should be much harsher

penalties for the banks when the proved buyers with the faulty loans.

                                                                                                                                          

               Finding the solution to the recession is almost impossible or it would have be

done already. But if our country can learn from these mistakes and prevent this from

happening again in the future that is our best option. Harsh laws should be in place and

future homeowners should be more educated about the pros and cons of receiving such a

large loan and owing a house. If all these homeowners didn’t just walk away and live a

whole new life our county would be in a much better place. However this up and down

process has to happen in order for our country to rebuild. If the cost of homes is

extremely high still it would be almost impossible for us to show any signs of

improvement.