bank investment groups just cited to repackage those mortgages create layers of them and they then resold to investors here's what happens there are three defaults on mortgages. the bank holds. sells goes at ten cents on the dollar to a second back that frank puts together with three other defaults and three other defaults makes a second package and sells to a third bank the third bank sells six of these things for countries and dangles them and sells them to some investor no idea what he has. they are really against those layers which is the real crime they would take a little piece of a layer of a security i don't need which somewhere there was a bunch of home buyers and they would take it and they would borrow three times the amount of money that it represents a five big investment banks dominated wall street it is really who took the subprime loans purchased from banks package them as bundled investments to be sold worldwide there were reports that there was what was called sanction from wall street other words wall street investment houses as they began to make billions on these secu

problem the reason higher fees up front and billions more when mortgages were turned into securities resold by wall street . sixty percent of the subprime borrowers could have qualified for less costly prime rates but most were told their homes would go up in value many accepted onerous terms to give their families a piece of the american dream. many would load into believing they could afford houses with no money down and low introductory interest rates to watch the cost of the just the bill rate mortgages or the ones shoot up when i first got it i got a one percent introduction loan and my mortgage came down the second month and went up to seven point nine zero and now it's up to nine point nine and it just keeps on going up if i'm paying twenty eight hundred dollars a month for my home i wanna live next to j. lo and marc anthony. now where i did say. we should not have to leave our homes dream i mean even us because you know. the rates are going up so high and we don't even understand why it's going up it's going in somebody's pocket but not out of it should have been no surprise to anyo

resolder family. unfortunately. throughout history religion and nationalism not just judaism have been a part of the problem they've been part of what leads to. bloodshed. and. countless from my point of view desecrations of god's name. the judaism that i grew up with. teaches me something different judaism has to be part of the solution. when i first spent time here. and started to realise that the vast majority of religious jews in this country understands judaism in a way so different from what i learned from my rabbis and my teachers my parents my family. you know there were times there are times i said well maybe i'm the crazy one but then you go back to the sources and you see what's there. and. now it is true of course that if you look in the bible you cannot escape the fact that god. promises the entire land of israel including the west bank the occupied territories to the jewish people in perpetuity but that same difficulty ology makes very clear you see that in the bible you see it in the prophets and the

grease is being captured and resold. we're putting water saving technologies into our businesses. the water revenue goes down, the sewer tax goes down because they raise the rate. we have a catch-22, consumption declines, revenue declines, so what does the water department do? it raises rates. we are being penalized year. what i would like to investigate further is, our small businesses paying too much? are we subsidizing mcdonald's, those larger users? are we subsidizing them? are we paying too much? how do you slow down the rate of increase in the still make the investment in the infrastructure that we need? we just had a large rate increase in stores, we have businesses looking to move. that is how this came to my attention and why i would like to put it on the agenda. we have a bakery that wants to expand in our district, but when they find out what these two were the and the charges are, the ongoing charges, this might make san francisco not attractive to them. and again, another reason to move out. i would like to look at this issue from a small business perspective. street

they're often resold often to unexpecting buyers often here on the west coast.an check the government's new data base. a flood title warns future buyers about the damage. we have a link at abc 7 news.com. and just click on 7 on your side. >> are you sharing less of your life on facebook? the "wall street journal" says new rivals are challenging facebook status as the king of social networks. sites like google plus gives more freedom to customize their privacy settings and some folks are posting less on facebook. >> and if people stop sharing on face, -- facebook, the magic is over, they're just lurking or reading other peoples posts and that doesn't keep the community flowing. >> and facebook says it plans to unveil more changes incoming weeks giving user morz freedom to tailor settings. and ratings compiled by zag yat don't do a double take if you see those same ratings soon at fast food restaurants. it's rated subway, mcdonalds and wendy's the best fast food restaurants. best burger suggests in and out, wendies and five dive which has locations in southern cal

is a broker he buys the contents of all recycling bins and resold it here where it can be treated by cheaper labor. like it would be. so newsline of business is doing well. the export of use plastic has been increasing by thirty percent a year in two thousand and seven from some seven hundred thousand metric tons of plastic a roll as you see the build up from france if you see from the label you may be able to identify a debacle that maybe you would think of a in the garbage bin me that come here now and it will be the i called and made again into valuable bottle more product which could be used again. the plastic recycle going to future comes through western countries quite legally the recyclers hope now showing us how we'll take our rubbish dealing come in just european consumers to send the movie. seats to the utopian customers utopian whole mourners are utopian men and women it's very straight and simple to put out all your stars is how to be associated in keeping them but aren't complete and good for the human to me for you have a weak lect north bottoms if you're throwing a jus

. >>> the tainted shipment gets resold and they are not sure where the cantaloupe ended up. health officials say if you have the fruit in your home and are not sure where it was grown, throw it out. 16 people have died from the outbreak, several others were sick including here in california. >>> he is forced to force food a patient, he is accused of a double murder and stopped eating. woo tried to commit suicide by starvation and it is his job to keep the inmate safe. they feel woo has no mental health problems. he was found to stand trial and he was found competent. they prosecutors will review that decision. >>> leaders from police fire and three other union unfailed their -- unveiled their plan. they signed up for reduced retirement benefits, limited cost of living increases and raising the retirement age. it will save the city nearly $500 million over the next five years. 25 new officers will be joining the oakland police department. they were just given a grant to put more officers on the streets and they are going to be cracking down on violent street gangs. >>> voters

they made shipments to 25 states but because the product gets resold, it is not sure where it ended upave cantaloupe in your home and not sure where it is grown throw it out. 16 people have died several others have gotten sick including one person in california. >>> today prosecutors will once again focus on the moments after michael jackson was found unresponsive. coming up at 5:45 what jackson's personal assistant said when the singer was discovered. >>> the obama administration wants the u.s. supreme court to get involved in the battle, to overturn a ruling in atlanta. that court said part of the law that requires all adult americans to obtain health insurance is unconstitutional. they will require them to have health insurance in 2014 or pay a penalty. people say it violates people 'constitutional rights. it could come in the ruling of next year's campaign. >>> recording the city's largest minority, 13 attend in chinatown and there was same attainly -- simultaneously speakers who came to hear from the candidates in american. answer no questions which i think could be very pointed,

sometimes they are resold to unsuspecting buyers.s car history database and we have a link at abc7news.com, look under "7 on your side". >> you are seen ratings at the finest restaurants. and see the same ratings at fast food restaurants. they have rated mcdonald's and wendy's as the best fad fas food restaurants. best burger, they suggest in and out and wendy's. >>> just ahead at 6:00 a.m. more on the scare in the skies, problem that forced a flight from sfo to make an emergency landing overnight. >> also, a limit to giving. unusual donation that brought a bomb squad to one bay area salvation army location. >> reporter: i'm terry mcsweeney live in hayward where the suspect in the michelle le homicide is expected in court today. police have a mountain of circumstantial evidence but i'll tell why they feel their job is only half done. ab

risk any one person would pay back a loan was divorced as risk itself was monitorized and sold and resold in an increasingly complex but increasingly insane anti-common sense game that drove the housing bubble, of course, and that made wall street very rich. who was one of the great champions of that game? glenn hubbard. hubbard teamed up with chief economists at goldman sachs to write about how wall street's new gain was enhancing the stability of the u.s. banking system. as for the impending threat of economic calamity, according to mr. hubbard, recessions are less frequent now and milder when they occur. so if you're wondering whatever happened to the guy who came up with the post-iraq war fiscal tax plan and wall street risk is fun casino action before the financial collapse, actually enhancing the stability of the financial system, if you're wondering whatever happened to a guy like that, wonder no longer, he has a new gig as the chief architect of mitt romney's new economic team. mr. romney's new economic plan unveiled today, calls for more tax cuts, he is now running mitt romney's

equity interest in them so the tax payers can get something back when those buildings not only are resold but also it improves the entire neighborhood, that's worthwhile to do but that also, like a lot of other infrastructure projects, is going to take a little bit more time to get done. >> ifill: matthew slaughter, what do youhink about those two pieces of this, the schools and the foreclosed properties? >> you know, there's many needs to improve america's educational system. some kids in america do need to be in higher-quality schools so i see the value of that. i would stress though the value of the transportation and broader pieces of infrastructure that touches american business. the jobs crisis we face today is predominantly a job crisis of private sector job creation. we have about 109 million private sector jobs in the united states today. that's the same number we had 12 years ago in the fall of 199 and to build millions of private sector jobs linked to the dynamic globally engaged companies that traditionally have really played a big role in helping to grow the american economy

when my company that i sold 11 years ago was resold, this the car company was the other bidder.foundation owned a little stock, i watched it come in two years later they were rated. i have to tell you that is one where i have looked and said we need to make sure it is properly investigated, and i need to humorously save the owners are republicans and made a bid on a company that i founded many years ago, and yes, i want to make sure no one questions whether i am doing this because they were a bitter in the company. of the other hand, i hope they did not have this raid because they did on my company. host: how do you balance that? you have been noted as one of the wealthiest members of congress. how do you balance what you did in the past with what you're trying to do now? guest: first of all, what you do is you change. when i was a businessman i was hands-on, that was my style before i ever sold or gave to congress i made the decision to put the company up for sale. i was still running it until the day i was sworn in, but i made the disconnect of never being a operational manage

i left the board when the company was resold because i thought they gotten all the transfer knowledge they were going to get from me. i will miss it. i miss hearing directly what's going on in the company so you can understand the troubles that people have in the praste sector that -- private sector that companies see and government doesn't. i made a decision, we don't own any individual stock. our charityible giving is through our foundation. the mutual funds we hold are all widely held. i fake the advice of a brokerage company and the only individual assets i own are some pieces of real estate and we make it a practice, we b

the banks obliged by loaning money with little documentation of incomes and simply resold those mortgages to fannie and freddie leaving the federal government and, therefore, the taxpayer holding what officials estimate to be some $300 billion in bad loans. >> it's probably likely to be closer to $500 billion by the time all of this is finished. and you and i get to pay that. >> reporter: one reason the cost is so high is that fannie and freddie which were taken over by the government own or guaranteed the lion's share of all mortgages, a role that has been expanding. >> fannie mae and freddie mac, own or guarantee a little over half the mortgages in this country. >> they are buying about 90% of all the loans that are made in the united states, all the home loans that are made in the united states today. >> reporter: now, fannie and freddie also hold some 240,000 loans that are in foreclosure. when the economy collapsed into recession in 2008, it was both a financial and a housing crisis that drove it down. the new round of lawsuits may save taxpayers some money, but some argue it also th

federal government used tax dollars to buy some of the guns for the fast and furious operation and resoldred firearms to mexico's ruthless drug cartels that is brand new hour of starting "america's newsroom." glad to have you this morning on tuesday. i'm martha maccallum. bill: i'm bill hemmer. are you all right. martha: i'm fine. bill: story gets deeper and deeper. border agent brian terry was gunned down in mexico. martha: now local governments, law enforcement and civilians especially in border states like arizona are fuming at the feds for arming some of the world's most dangerous criminals. >> lo and behold, we now found out our own government has been facilitating and with the straw purchases of weapons, being placed into the hands of the most violent criminals in north america, mexican drug cartels. that is outrageous. martha: outrageous he says. william la jeunesse joins us live in los angeles. good morning, william. >> reporter: well, martha many would say it is bad enough to knowingly help sell guns to criminals or to knowingly to allow them to go across the border but the new d

when my company, that i sold 11 years ago, was resold, gibson guitar was the other bidder. it was interesting. my foundation on the little stock. i watched it. two weeks later, they were rated. i have to tell you that is one where i have looked and said if we need to make sure it is properly investigated, i need to humorously look and say the owners are prominent republicans and made a bid on the company i founded many years ago. i do want to make sure nobody questions whether i am doing this because they were a better on the company. on the other hand, i hope they did not have this rate because they did on my company. i suspect they did not. host: how did they balance that? you have been noted as one of the wealthiest members of congress. you made some money before you came here. how you balance what you did in the past with what you are trying to do now? guest: first of all, you change. when i was a businessman, i ran my business every day. i was hands-on. that was my style. before i ever sold, before i came to congress, and made the decision to sell the company. i sold i