I noticed in the last presidential debate McCain mentioned home ownership Loan Corporation during the Depression Era. History is like a cycle, and now we are running into the economic crisis again. I wish the history could provide us with some profound insights toward this issue.
During the Great Depression Era, 1000 families were losing their homes each day to foreclosures. Then the HOLC (aka home owners’ loan corporation) was founded. They helped homeowners to buy mortgages from the bank and refinancing them so the homeowners could afford to pay the mortgage. According to Propaganda.com, when the Great Depression came to an end, HOLC rescued over 20% of the homes. In addition to that, HOLC made some profit from the rescue plan.
Actually, in September this year, Senator Hillary Rodham Clinton called for a plan to stop market crisis. She also called for a reform in HOLC to remove bad mortgage. She said during the speech “This is the greatest market upheaval during the great depression. We are indeed in a crisis, but in times of crisis, there are opportunities for leadership.”
Now it comes to the ongoing economic crisis. Some people believe McCain’s new plan will work well in saving such a crisis. “Investors will get an immediate distribution from the government’s cash,” said Yepper from a blog post. However, others think this time the crisis is different from the Great Depression in unemployment and international industrial economy. “The most important difference is the government’s role,” according to an article from Los Angeles Times.
We are not in 1930s. We people are moving forward, so is our economy and government system. What worked in the past may not apply to situation nowadays, because so much has been changed. McCain promised in the past presidential debate, “So, obviously, if we can start increasing home values, then there will be creation of wealth.” He might be right. I really wish it could be that simple.
What’s your reason for wake up in the morning?
6 years ago
2 comments:
I wish it was that simple too but its not. I am very interested to see how the next president tackles this problem because, at this stage each candidate is making it seem as though he is the light and has all the answers, but I agree that history repeats itslef and that the answer to our problem can be found in history books.
You are right that both presidents speak as if they can fix any problem. But we never know. We won't be able to see the result until one of them being elected.
And I believe history repeats itself too. The main problem will always be the same, however, there will always be some subtle differences such as background and cultural recognition. Sometimes a small change requires a lot to tackle it.
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