Fixing The Housing Crisis

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The Housing Mess Must be Fixed, Now!!

According to Realtytrac.com there is close to 2 million homes in various stages of foreclosure. In Illinois alone, one in every 314 housing units is in foreclosure. The national average is one in every 381 units. That is astounding. Currently, a number of lending institutions have sidelined their foreclosure process due to clerical missteps. The fact remains we have a terrible housing crisis on our hands. What is Congress’ answer to the problem? A financial re-regulation act. Not the solution.


One source I visited with indicated that the housing mess would not abate until 2013. That comes from someone in the real estate business for over twenty years and quite successful. Others have said maybe 2015. Now that is a serious problem.

In order to move towards a great housing recovery three economic components are urgently needed; job growth, income growth, and population growth are what are necessary to lift the crisis. Given the current administration’s policies and congress’ inaction, the lack of recovery will be further prolonged.

Stimulate Job Growth
(1) Cut corporate taxes to free up monies for investment and hiring.


(2) Cut personal income taxes and spread the brackets.


(3) Cut the payroll tax to 5% for employees and employers. Financial planners encourage people to pay themselves first often floating a goal of 10% of ones gross pay. Why should working people be compelled to put more than that into the ponzi scheme know as Social Security?

The tax cuts during the Kennedy years and the Reagan years had a stimulative effect on the overall economy. The same could be done during these hard economic times.

Income Growth
The tremendous effect of the tax cuts would spur stronger economic growth, create more jobs and cause incomes to rise. It becomes basic supply and demand classical economic equation. As more job openings are created there will be more demand for the best hires. Consequently, incomes will be bid up. The tax cuts alone will allow people to have greater disposable incomes.

Population Growth / Immigration Reform
While it is true that there has been a baby boomlet over the past few years, we will have to wait another twenty-five years before those youngsters enter into the housing market. We probably don’t want to wait that long for a housing market recovery. What is needed is top to bottom immigration reform. Begin by protecting our borders, which is in our National Security interests. Beyond that we need to re-examine who gets granted visas. Provide the undocumented incentives to: a) either become US citizens, or b) obtain the proper work visa. Correlating consequences should be made for those who do not abide. All criminals must go.

Until we turn around our moribund education system we need to attract the best and the brightest from other lands. In this regard we offer incentives to attract those highly skilled immigrants. Put them on a fast track to US citizenship if they invest in a house. Create a little demand for housing.

This trifecta of solid economic moves will have a healing effect on our current housing crisis. If acted upon in an urgent manner, perhaps we can see the housing market recover before 2013.