The current financial crisis, which has its origins in the subprime mortgage crisis, began to worsen dramatically in September 2008. There has been significant economic turmoil in the United States alone. Major banks and financial organizations around the world are going bankrupt and writing down billions of dollars. Real estate markets are falling not only in the United States but around the world. This crisis is truly global and it is spreading like fire. Due to these economic crises, the US Congress proposed a $700 billion bailout package to buy out the distressed assets of financially distressed financial institutions. However, another rescue plan has been proposed: this is the owners' rescue plan. We know that the problem of foreclosures is getting worse and is not expected to improve. There have been a number of housing proposals to help people with questionable mortgages and to prevent foreclosures from increasing. But it seems like every proposal to save homeowners has problems. The major problem is that more and more foreclosures are being dumped onto the market, significantly reducing home prices. Falling house prices mean more and more homeowners are being burdened with bad mortgages, meaning their home is worth far less than the original price they bought it for. Homes have already lost an average of 20 percent of their value, but “most experts predict another drop of at least 15 percent” (Zuckerman, 2008). Additionally, as homes are abandoned by owners and left empty due to foreclosure, it decreases the value of the entire neighborhood and not just a single home. The fall in real estate prices will obviously harm consumers' insurance, their expenses and ultimately will not affect...... middle of paper ...... defaulting landlords are the cause of this financial crisis. The goal of any bailout is to balance the financial system and bring it to equilibrium. The financial system will not balance until house prices remain stable or increase, and house prices will fluctuate until the government finds a way to stop the increase property foreclosures. It's pretty obvious that the government isn't doing its best to keep people in their homes because it doesn't want to use the bailout to collect on homeowners' mortgages. If the U.S. government does not come up with a plan quickly and housing prices continue to fall, the economy is unlikely to recover. Even though the goal of the bailout bill was to protect the collapse of the American financial system, the government must understand that the only way to prevent this fire from spreading is to stabilize the housing market..