Powerpoint slideshow for my ECON 492 Capstone Paper titled, "Why Are the Several States Experiencing High Foreclosure Rates?: An Analysis of Arizona, California, Florida, Indiana, Michigan, Montana, and Nevada. This presentation only discusses R Squared Analysis, and does not take into account other regression parameters.

1. Why Are the Several States Experiencing High Foreclosure Rates?: An Analysis of Arizona, California, Florida, Indiana, Michigan, Montana, and Nevada

2. Introduction: In 2009-2010 thousands of Americans are having their mortgages foreclosed. The credit markets are seizing up, and the housing markets are unstable. Similar to foreclosure crisis in the 1890s and 1930s, as long as confidence is lacking in the credit markets, and housing markets are messy, economic recovery is unlikely. Why are foreclosures occurring? My hypothesis is that we need a state-by-state solution, because different states are experiencing high foreclosure rates for different reasons.

3. Literature Review According to Haughwout, Okah, and Tracy (2009), mortgage delinquencies beginning in 2007 have led to policy attempts to solve the problem.

4. Economic Analysis The amount of housing counseling grants was substituted for foreclosure rates. Predictor variables were the 30 year mortgage rate, unemployment rate, high school dropout rate, and the CPI. The data was placed in Excel and a regression was run for the predictor variables as a whole, and then for each predictor individually. For the purposes of this paper, a high correlation implies that a predictor is the culprit in causing foreclosure.

5. Overall Correlation

6. Arizona Correlation

7. California Correlation

8. Florida Correlation

9. Indiana Correlation

10. Michigan Correlation

11. Montana Correlation

12. Nevada

13. Conclusion Unfortunately, available data was not optimal. More causes of foreclosure would have made the study more interesting. Based on results, though, thesis was proven; different states do have different causes of foreclosure. Therefore, any attempt to tackle the foreclosure crisis should be crafted on a state-by-state basis. Hopefully policy makers will come to the same conclusion, and realize a one-fix-all approach will be unsuccessful and wasteful.