Mortgage Crisis a '50-State Katrina'

Filmmaker Danny Schechter reflects on the extent of America's debt crisis, and wonders if we need something like the Oscars to help name and identify those responsible.

2 minute read

February 28, 2008, 7:00 AM PST

By Michael Dudley


"Fear of economic collapse is replacing fear of terrorism. The real homeland insecurity these days is to be found among the two-to five million (yup, the number has been expanded) American families who are in danger of having their homes foreclosed. Add in all their tenants and their neighborhoods-because when one house goes, property values decline next door and the tax base quickly erodes.

California is among the hardest hit states...650,000 foreclosed properties were for sale in California according to RealyTrac, the company that is tracking this slow-motion disaster. That was an increase of 177% over the year before. 9821 California homes went into foreclosure just this past January, says another research firm, representing about $8 billion in value. Over 25,000 homes are in pre-foreclosure in Los Angeles alone as of Oscar Sunday. Nationwide, 1.7 million homes defaulted last year.

Most of these homes were owner -occupied, so we are not just talking about an abstraction but millions of real people, disrupted lives and dreams for families affecting schooling and even voting because most registrations are residential. This problem has been called a "50-State Katrina."

And most of these homeowners are likely in deep debt now that they can't use their homes as ATM machines to pay off their credit card bills. Many of those who borrowed themselves into a modern form of serfdom didn't realize how much they would have to pay. They are the new victims of downward mobility. No wonder most marriages break up under this kind of stress. Late night TV is filled with commercials for debt consolidation because these companies know how much anxiety and sleeplessness afflict those in debt."

Tuesday, February 26, 2008 in Common Dreams

courses user

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges. Corey D, Transportation Planner

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges.

Corey D, Transportation Planner

Ready to give your planning career a boost?

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

Seattle Legalizes Co-Living

A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.

December 1, 2024 - Smart Cities Dive

Times Square in New York City empty during the Covid-19 pandemic.

NYC Officials Announce Broadway Pedestrianization Project

Two blocks of the marquee street will become mostly car-free public spaces.

December 1, 2024 - StreetsBlog NYC

Broken, uneven sidewalk being damaged by large tree roots in Los Angeles, California.

The City of Broken Sidewalks

Can Los Angeles fix 4,000 miles of broken sidewalks before the city hosts the 2028 Olympic Games?

December 5, 2024 - Donald Shoup

cars

Study: Automobile Dependency Reduces Life Satisfaction

Automobile dependency has negative implications for wellbeing. This academic study finds that relying on a car for more than 50 percent of out-of-home travel is associated with significant reductions in life satisfaction.

6 hours ago - Science Direct

Yellow San Diego Unified School District school bus.

San Diego School District Could Accelerate Workforce Housing Program

A proposal to build housing on five district-owned properties could yield 1,000 housing units for low- and moderate-income district employees.

7 hours ago - Governing

Red bus parked at transit station in Denver, Colorado with CO state capitol dome in background.

Denver Transit Board Approves $1.2 Billion Budget

The 2025 budget for the Regional Transportation District is the largest in the agency’s 55-year history.

December 10 - The Denver Post

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.