Can Washington Contain the Mortgage Meltdown?

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One of the bright spots in the national economy had been the tremendous gains in home prices and construction. President Bush has declared that his ownership society policies have worked. Now foreclosure rates are soaring and even wealthy investors are losing billions of dollars. As the country gears up for an election, Washington is scrambling to calm the crisis, but will politics help or make things worse?  Also, President Bush travels to Baghdad to assess progress in Iraq and, on Reporter's Notebook, with North Korea backing away from nuclear confrontation, the US has to decide if this new cooperation is sincere. Jim Sterngold guest hosts.

President George W. Bush stands with Secretary Alphonso Jackson, of the Department of Housing and Urban Development, and Secretary Henry Paulson Jr, of the Department of Treasury, during a statement August 31, 2007, in the Rose Garden regarding homeownership financing. White House photo by Shealah Craighead.