After a frantic weekend that shook Wall Street to the core, Lehman Brothers filed for bankruptcy Monday under the weight of $60 billion in bad real estate holdings and Bank of America moved to buy Merrill Lynch in a $50 billion deal. Continue reading
The drive to own more homes and renovate old ones in the U.S. fueled the number of bank loans that underlie the country’s meltdown. In the first in a series of interviews on the economic downturn, Daniel McGinn, author of “House Lust,” details his take on the factors behind the housing and credit crises. Continue reading
The city of Baltimore has lately seen skyrocketing foreclosure rates and slumping home prices. The housing shake-up led the city to sue its largest lender — Wells Fargo — over allegations that it gave black homebuyers higher loan rates than white buyers. Ray Suarez examines the impact of the housing crisis in Baltimore. Continue reading
As home foreclosures reached a record high Thursday, President Bush announced a deal with mortgage lenders to freeze interest rates on some subprime mortgages due to move sharply higher soon. Treasury Secretary Henry Paulson discusses the details of the proposal. Continue reading
Question/Comment: Housing prices skyrocketed to double in 3 years and everyone thought they were rich, and went out and spent the money. Now the market corrects 30 percent and everyone discovers that it wasn’t real. Why should the taxpayers bailout … Continue reading
- When can we expect to break even, or at least recover some of the value that we lost due to the declining real-estate market?
Question/Comment: Everyone mentions all of those unfortunate people who are defaulting on their home loans due to the sluggish economy. Nobody mentions, however, the many hardworking Americans who saved and struggled to buy their dream homes and they are now … Continue reading
After many years of unprecedented growth, the housing industry’s fortune is changing as various indicators show a significant downturn in the market. Economics correspondent Paul Solman investigates what the shifts in the housing market may mean for economic growth. Continue reading