Foreclosure: A Loss for AllSummary: Although foreclosure has always burdened market participants, in recent years it has slowly collapsed the economic infrastructure of the United States. Although many government solutions have been attempted, including the Housing Affordable Modification Program (HAMP), they have failed in many ways due to lack of transparency. Including transparency, many banks and lenders have participated in foreclosures in the United States due to their inability to identify who is a subprime and subprime lender. If there is no distinction, I fear that miscalculated loans will be made to the average American. Fixed rates and strict banking regulations have left even the most creditworthy lenders in the dust, leaving home sales at an all-time low. Finally, it is important to examine the ethical behavior of banks and lenders, as it appears that the ethical areas of business have become invisible when it comes to dealing with the real estate market. Despite these problems, however, I am optimistic that with the right solutions and leadership, the real estate market can get back on its feet. There is no such thing as a free lunch: as the famous American economist Milton Friedman once said: “There is no such thing as a free lunch.” Despite Friedman's pessimistic view, there has always been evidence of generosity. As a child, for example, when you forgot your lunch money, there was always someone around to help: a friend, the lunch staff. No, however, suppose for a particular child forgetting their lunch money is a daily occurrence, it is more than likely that people will stop lending them money. One way or another, nevertheless, the child would not be hungry, it is more than likely that someone would start...... in the middle of paper...... . Home. Financial Services Commission. Subcommittee on Housing and Community Opportunity. Financial Services Commission. Foreclosure Prevention and Response: The Importance of Loss Mitigation Strategies to Keep Families in Their Homes: Hearing Before the Subcommittee on Housing and Community Opportunity of the Committee on Financial Services, House of Representatives United States, One Hundred and Tenth Congress, First Session, November 30, 2007. By USGPO Washington DC: USGPO, 2007. Print.United States. Government Accountability Office. Risk-based capital [electronic resource]: Banking regulators must improve transparency and overcome obstacles to finalizing the proposed Basel II framework: report to congressional committees. By the Accountability Office. Washington DC, 2007. Print.Zandi, Mark M. Financial Shock. New Jersey: FT, 2009. Print.