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democracy1st Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 01:36 AM
Original message
60Minutes: The next housing shock
 
Run time: 14:07
http://www.youtube.com/watch?v=QwrO6jhtC5E
 
Posted on YouTube: April 03, 2011
By YouTube Member: CBSNewsOnline
Views on YouTube: 189
 
Posted on DU: April 04, 2011
By DU Member: democracy1st
Views on DU: 2581
 
As more and more Americans face mortgage foreclosure, banks' crucial ownership documents for the properties are often unclear and are sometimes even bogus, a condition that's causing lawsuits and hampering an already weak housing market. Scott Pelley reports.

http://www.cbsnews.com/video/watch/?id=7361572n&tag=rel... ;photovideo
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SheilaT Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 02:07 AM
Response to Original message
1. Wow.
This is a complicated problem to say the very least.

On one hand, I keep on thinking that the lower housing prices are a Good Thing, that now a lot more people can afford to buy.

That's true, but it leaves out the other part, the ones who have lost their homes in this debacle.
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pam4water Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 03:30 AM
Response to Reply #1
3. It's not an either or thing. Banks have been jacking up house prices since points
were introduced. And since they could off load the risk. Now they can only off load half the risk but they still don't seem to be making much better decisions. They got used to the points and the crazy over sided fees they charge. Open to many branches and get the executives to high pay. If they put back the banks laws form before Reagan, we could have low house prices and better banking system.
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 05:21 AM
Response to Reply #3
6. You noticed the excess of branches, too?
That was my first indication that the economy was about to crash.
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SheilaT Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 10:27 AM
Response to Reply #3
11. Except that banks aren't the ones jacking up
housing prices. That has very much been a supply and demand thing, coupled with the real estate industry pushing home ownership for everyone. In addition, the tax deduction for the mortgage interest also encourages many to take out a loan they otherwise wouldn't consider, or wouldn't qualify for.
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pam4water Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 06:51 PM
Response to Reply #11
14. Yes they are. They are the ones who decide how much money you can spend on a house.
I don't know why people still have the illusion there there is anything remotely resembling a free market left in the USA. Bank both artificially increased the prices and the demand. By approving loans to people they knew people did not have the means to repay the loans. And approving loan to people reasonably secure jobs that were much higher than they could after the initial teaser rates, saying they could refinance when the teaser rate ended.

Read The Big Short: Inside the Doomsday Machine by Michael Lewis.
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SheilaT Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 10:32 PM
Response to Reply #14
15. When they do their job right,
they make sure you don't try to get a larger mortgage than you can really afford. They are still not the ones setting the price. You could make an argument that the Realtors are the ones largely responsible for the huge run-up in home prices, especially in certain "hot" markets. Lending companies -- not all of which were banks, by the way -- lent the money.

This is not the only time this kind of thing has happened. Am I the only one who can clearly recall the "creative" financing of the 1980's? My husband and I backed out on a home purchase in 1989, because the loan we were offered (and to be honest we were really trying to buy a slightly more expensive place than we should have been buying) involved an ARM. The first three years would be low, but we realized we could not predict what would happen after that, and decided it just wasn't worth the risk and worry, so we cancelled that contract and a couple of weeks later bought a smaller,less pricy place with a 30 year fixed.
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Charleston Chew Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 02:12 AM
Response to Original message
2. I saw this when it aired earlier tonight
I am glad it is here, where I can easily refer people to it.

I hope to read or hear more about all the players in this game.

Kick & Recommend
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kimsarah Donating Member (290 posts) Send PM | Profile | Ignore Mon Apr-04-11 03:45 AM
Response to Original message
4. Prices for homes
can't get low enough for the shrinking middle and lower classes to buy one, after being cut off at the knees time and again.
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Sherman A1 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 04:31 AM
Response to Reply #4
5. Good Point!
and welcome to DU! :hi:
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Citizen Worker Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 05:57 AM
Response to Original message
7. This is fraud and forgery on a grand scale. Question, will anyone be prosecuted and if found guilty
sentenced to prison? My bet is not unless it's the $10.00 pseudo bank vice presidents. It certainly won't be those at the top of the food chain. How much will the taxpayers be forced to ante up to save the too big to fail banks, again? This is a fine example of what happens when regulations and enforcement are removed. Capitalism left to police itself destroys the host.
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spicegal Donating Member (617 posts) Send PM | Profile | Ignore Mon Apr-04-11 06:57 AM
Response to Original message
8. This was a great piece-shocking and infuriating.
People need to be going to jail over this scam.
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canoeist52 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 07:33 AM
Response to Original message
9. better link for sharing w/o the ads
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proReality Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 09:18 AM
Response to Original message
10. "...something we did not know..."???
That information has been all over the internet for at least two years.
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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-04-11 12:13 PM
Response to Reply #10
13. But the comments indicate how poorly informed people really are
MSM has been AWOL on the nuts and bolts of the "crisis."

The info has been available, but you had to have the desire to actually read the material. Kinda like the thirsty horse/water trough scenario.
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BEZERKO Donating Member (564 posts) Send PM | Profile | Ignore Mon Apr-04-11 11:39 AM
Response to Original message
12. Great story,
unfortunately for the rest of the country? Not so much...
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