Sub-Prime Loans and the Economy
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The subprime mortgage crisis may force 2 million people out of their homes and a
small army of Wall Street executives out of their jobs. Will there be a
recession? Would government intervention make things better or worse? Also, the
US turns another province over to Iraqi control, and Christina Fernandez de
Kirchner succeed her husband as President of Argentina. What that could mean for
other women in politics?
Joint Economic Committee Chairman Charles Schumer (D-NY) talks about the joint economic committee report during a news conference on Capitol Hill, October 25, 2007 in Washington DC. Photo: Mark Wilson/Getty Images
Suicide Bombing in Iraq as Security Handovers Continue ()
In Iraq, the US has turned over Karbala, south of Baghdad, to Iraqi forces. It's the eighth of 18 provinces now in Iraqi control. At same time today, a suicide bomber on a bicycle killed 28 police officers in Diyala Province and wounded another 20. Christian Berthelsen is in Baghdad for the Los Angeles Times.
- Christian Berthelsen: Staff Writer, Los Angeles Times
The Sub-Prime Mortgage Meltdown Continues ()
When housing prices were going up, lenders were approving low interest loans to borrowers with questionable credit. The interest rates were "adjustable"--scheduled to go up, but before higher rates kicked in, homeowners could sell at a profit or re-finance their loans to get better deals. Banks and investment companies packaged the sub-prime loans and issued hundreds of billions of dollars worth of bonds. Now, the head of Merrill-Lynch is among those losing their jobs as Wall Street pays the price for over-investing in sub-prime mortgages. America's biggest home lender is helping borrowers to restructure their loans to avoid foreclosure, but home prices are still going down. The sub-prime debacle may cost $400 billion, twice as much as the savings and loan crisis of the early 90's, and two million people may lose their homes. Will there be a recession? Should the government step in or let borrowers and investors live with the consequences of risky decisions?
- Kevin Hall: National Economics Correspondent, McClatchy Newspapers, @KevinGHall
- Allen Fishbein: Director of Housing and Credit Policy, Consumer Federation of America
- Stephen Moore: board member and economics writer for the Wall Street Journal
- Peter Morici: Professor of International Economics, University of Maryland, @pmorici1
Does Victory for Argentina's First Lady Put Hillary Clinton in New Light? ()
Cristina Fernández de Kirchner will be the next President of Argentina, taking over from her husband Nestor and joining Chile's Michelle Bachelet as South America's second sitting female head of state. Fernández de Kirchner was the likely winner the moment she announced her candidacy, but it's still unclear if her policies will be much different from those of her husband. What does her election say about the viability of women as politicians? Lois Hecht Oppenheim is Professor and Chair of Political Science at the American Jewish University in Los Angeles, California.
- Lois Hecht Oppenheim: Professor of Political Science, American Jewish University
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