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This post is a response to the question ["What can American citizens do to prevent another housing bubble from occurring?"] (@mackenziejones/week-14-questions-the-bigger) posed by @machenziejones.

Trying to prevent another housing bubble goes both ways. The government needs to be watching the banks and the banks need to be watching who they are loaning money too. It goes all the way around. People should not be taking out loans on houses they cannot afford. Banks should be watching who they give out loans too. Specially, when they are variable interest rates that are super low now but will go up in the future causing the citizens to not be able to pay back their loans. This causes the government to have to bail them out.

Where Is The United States At Now?

Honestly, I think we are in the middle of building a bubble now. The United States is trillions of dollars in debt. The government has printed an extreme amount of money in the last year and the prices of everything from labor to gas keep rising. At some point, all of this has to balance out. The bubble has to burst, and I will be dreading that day.

Possible Solutions

I think one of the best ways to prevent another housing bubble is educating the citizens of the United States about personal finance and loans. In 2008, I know a lot of them just saw a fantastic deal so they took it not realizing what would happen when the interest rate went back up which inevitably the rate would. This was a learning experience for a lot of people. I think that we could be preventative about this if we required a personal finance class to our citizens. I am not sure what all has changed since 2008, but we could also have a stricter loan application process so that we could make sure the citizens would be able to pay it back. Overall, I think another housing bubble could be prevented. I think the last one could have been stopped as well, but we were not listening to the right people.