In order to accurately resolve the problem of the foreclosure crisis that the country currently finds itself in, it is necessary to examine the cause of the problem. To determine the cause, one must examine the seizure history. The questions: “How long have the seizures existed? In the past, what was the cause of foreclosures? How was the problem resolved before? What are the similarities between today and that time? All these questions need to be answered. Foreclosures have existed since the first public banking system came into effect in February 1791 (Cowen). The development of the stock market took place on July 4, 1791. The first banking panic occurred in 1792, when banks had to call in a large portion of the loans they had made, forcing speculators to sell their stocks; this caused the first crash of the American stock market. When people were unable to pay for their homes and businesses, banks were forced to foreclose on them. By foreclosing on a home or business, the bank could resell it, thereby obtaining the money it should have received, thus preventing the bank from defaulting on a payment owed to the federal government. A similar thing happened throughout the latter part of the 19th century, after the passage of the Homestead Act of 1862. The Homestead Act gave settlers up to 160 acres of land to live on for five years, as well as to improve it, while paying a nominal fee averaging around thirty dollars, but in some cases as low as ten dollars. Residency was required to own the land. It was later discovered that 160 acres was not enough on the plains, even though it was on the east coast (Freligh). As farmers had problems with insects, drought and erosion, they had to take out high-interest loans from the bank. , and when they defaulted, the farmers left the banks with... middle of paper......or the nation's working class. The only option is to get the jobs back. Having a major manufacturing industry in the United States again will give more people the opportunity to work, thus fueling the inevitable monetary cycle of supply and demand. The more jobs there are, the more revenue the government generates and the more money circulates in the economy. Knowing the history of banking problems and foreclosures, as well as what has worked and what hasn't worked in the past, is the only way to find an answer to today's foreclosure problem. In the past, finding or creating jobs for the unemployed helped revive the national economy and reduce the number of foreclosures because people could pay small increases to banks. Fixing the job market by finding more jobs is the only way to truly get the nation back on its feet and solve the current foreclosure problem..