Desperate Households - USA

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June 2008
This year, millions of homes in the US will be repossessed. Wall Street was aware of the risks involved with sub-prime lending but chose to ignore them. No ethics, just money- here is a story of greed and recklessness.

In California, the sub prime crisis has hit homeowners full on. Repossessions have become routine and the foreclosure rate is still accelerating. Neat façades and tidy gardens can't prevent houses being sold for almost half of what they cost a year ago. Pressed for time and money, owners are torn out of their homes: 'It's like leaving your children' says Rob. He is hoping the bank will accept a quick sale and forgive the loss, but this is unlikely. Most are made to wait until they default on repayment, which wrecks their credit record. Former bankers reveal how low interest rates were meant to boost the economy. Banks looked for ways to make profit despite low rates and chased high-risk mortgages that would pay 8 or 9%, ignoring the consequences for borrowers if prices fell and interest rates rose again: 'There's no perception of the guy in some tiny little house in Detroit or in Philadelphia or in Stockton who basically might be losing their home.' Now that the system has failed, banks are less ready to lend money and this impacts on the entire economy. Families lose their homes, businesses fail...Wall Street gambled and the world has to pay.

Channel: News & Politics
Uploaded: June 9, 2008 at 9:44 pm
Author: journeymanpictures

Length: 00:23:33
Rating: 4.73
Views: 26505

Tags: USA home repossession Stockton California "subprime crisis" housing boom US financial system banks Journeyman Pictures

Video Comments:
davidluk8 (November 17, 2008 at 12:53 pm)
Just walk away for the couple. Those greedy banks deserve to go bankrupt and some of their employee go to jail for fault.
plzIneedhelp (November 4, 2008 at 11:40 am)
why do you people keep posting these sob stories those houses are up for sale because the owner couldn't pay his bills

end of story
VideoGuyNC (October 25, 2008 at 12:34 pm)
People have just tried to live BEYOND their means for TOO long. Why spend your life paying for a huge box to have to pay to heat and cool? Small homes are the answer for America's future.
HughGQuipment (October 19, 2008 at 3:17 pm)
Watching Obama & his crooked Democrats try to evade blame for this is a real hoot.

Why can't he explain why he DIDN'T sign this letter, back in 2006, warning about the FannieMae-FreddieMac disaster.

tinyurl (dot) com/3q6dc9
(fix the "dot")

19 Republican Senators signed the warning, saying FannieMae-FreddieMac was a disaster and needed fixing NOW! And this was over TWO YEARS AGO.

NO Democrat signed it.

Why not, Obama? Just tell us.

Too busy cashing those six-figure FannieMae checks?
tacotony24 (October 19, 2008 at 3:08 pm)
"protestant ethic" is a joke and bullshit - the anglo-saxons became wealthy only by looting other people's land and exploiting other people's labor. Confronted by powerful economies such as that of China and Japan, their supposedly impregnable walls came tumbling down
lilze69 (October 27, 2008 at 9:47 am)
I agree!
Sefardi123 (October 13, 2008 at 6:19 pm)
*Take ONLY FIXED RATE interest for MOTRGAGE*
Do NOT be fooled!!!
ricoberto1 (October 13, 2008 at 3:54 pm)
These Folks are Illegal Aliens.... The fucking banks need to fail...
3ssay (October 13, 2008 at 9:37 pm)
Illegal Aliens don't live in $400,000 houses. Most of them if live in crammed & debilitated ghettos. In these homes, it isn't unussual to find multiple families residing in the same residence. These people are not Illegal Immigrants, they're just Immigrants.
ricoberto1 (October 14, 2008 at 10:57 am)
NOt true... I work for Wells Fargo, they have millions of homes financed to illegal Aliens... Open your eyes..... You have just seen a couple i this video... They pool their money and buy with phony documentation.... They make up a high percentage of bad loans we are now dealing with.