Any one familiar with our work will easily remember that we told you - at the moment of the release of our documentary - that the impact of so much predatory lending would affect the practically everything. So we weren’t much surprised to read in the NYTimes as of 01/12 that the Mortgage Crisis Spreads Past Subprime Loans.

Until recently, people with good credit, who tend to pay their bills on time and manage their finances well, were viewed as a bulwark against the economic strains posed by rising defaults among borrowers with blemished, or subprime, credit. “This collapse in housing value is sucking in all borrowers,” said Mark Zandi, chief economist at Moody’s…

Was the ‘housing miracle’ synonymous with the Myth of Homeownership for all?

While it is understandable that stabilizing the economy ought to be a priority, we have concerns when reading headlines such as this one: The Six U.S. Banks Plan to Step Up Efforts to Avoid Foreclosures. Here is an excerpt:

Feb. 11 (Bloomberg) — Bank of America Corp., Citigroup Inc. and four other lenders will announce new steps tomorrow to help borrowers in danger of default stay in their homes, according to three people familiar with the plans. The banks will start “Project Lifeline,'’ offering, on a case-by-case basis, a 30-day freeze on foreclosures while loan modifications are considered, two people said on condition of anonymity. The companies met with Treasury officials over the past week to discuss ways to encourage homeowners to get in touch with their mortgage servicers, one person familiar with the deliberations said…

Where will the money be coming from?… The taxpayers again!