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| 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.
Tags : USA home repossession Stockton California "subprime crisis" housing boom US financial system banks Journeyman Pictures |
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Affichage : 23471
Durée : 1413 s |
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