there s decent aspects. it s an effort to reach people whose credit isn t as good. an effort to give them the ability to move up and reach the home ownership dream. but like so much else, it starts as a good idea that eventually gets perverted. the history of the modern age of finance is that. washington has failed miserably for the last 10, 20 years, as the mortgage market has changed, but washington has been concerned about, is for lenders to makediligence. it became possible to buy a house with no provable income, no assets and maybe not even using your real tiname. people are saying, you re going to give me a mortgage when i don t have a job, i can lie on my form and sign it and you give me the money anyway, give me the free option to buy a home, i ll do that all day long. people love free options. one company considered an
successful. and a darker secret that fed his need for success. madoff allegedly had been using new investment money from cloonts clients to pay profits. under the weight of a tumbling stock market the scheme collapsed. desperate investors and lawyers scrambles to madoff s eastside offices friday looking for their money. they were turned away in the lobby. there has never been a ponzi scheme on the scale of madoff ever. we are talk thousand of people who thought that they had millions of dollars socked away for retiermrementtirement. rose and jack say they invested every penny of savings with madoff. we started to sell our furniture. some of our thing that we value. so that we should have some money immediately. then there is 91-year-old ian fearman. he had to take a job at a grocery store after losing $700,000 to madoff. the human offering that
insurance, it would be regulated. aig essentially facilitated a lot of the mortgage securities by essentially providing an insurance policy should they go bad. but because the derivatives market had been deregulated, aig could do this without any requirement to put up reserves. it s like an insurance company selling you a life insurance policy and not having money when the time came to pay off. and the time came to pay off. aig must raise at least $40 billion and fast. you had a full-scale run on aig. and there was a real view, by the way, that if aig went under, the game was over. aig does business with every major financial institution and in 130 countries. aig will destroy much of the capital formation process in the western world. paulson, bernanke, tim
low-income pliers to overcome this hurdle. this is everything that americans were supposed to want. the security and instability of owning their home. you were supposed to por rborro money. on average, nation home prices had gone up. the house market, a hot market, in hopes that real estate will continue to gain value. john and camille carter are joining the group of first-time home buyers. we prequalified a weekend ago. everyone was talking about property. they all saw buying a house was the main way to get wealth. house prices kept going up. this seemed like a no-risk, no-brainer thing to do. mortgage applications hit a
wall watched washington with shock and package went down, the dow went down like a sub. there s mo americno american not feeling this one way or another. wiped out everyone s 401(k). there s pure disgust with the politicians. paulson called me that night, stunned and scared. people were days away from not being able to take money out of the atms. it was a very dangerous, global crisis in scope. we were out of ammunition. two days after the house killed the financial rescue package, the senate leadership is determined to pass it tonight, and pressure the house into taking action. to democrats and republicans who oppose this plan, i say, step up to the plate. let s do what s right for the country at this time.