Assembly Bill to Offer Bailout to Homeowners Facing Foreclosure

The sub-prime lending market was a product of the housing boom that’s now cooling off in California and the rest the country. Many homeowners are now faced with foreclosure. They can’t keep up with increasing payments on loans with variable interest rates—which means they started out low and they’re now going up. Should California create a pool of money to help avoid those foreclosures? Democratic Assemblyman Ted Lieu proposes a bill. We hear from Lieu as well as from economist Jack Kyser.