ABC: Stock Market 'Crashing,' 'Legalized Gambling' Ruins Family's Mortgage
In the media frenzy over housing and the markets, ABCâ€™s Chris Cuomo broke new ground August 13. His â€śGood Morning Americaâ€ť report about the â€śdrama on Wall Streetâ€ť disparaged the stock market â€“ a market he said was â€ścrashing.â€ť
â€śTo a certain extent the stock market has always been a form of legalized gambling,â€ť Cuomo said, â€śwhere Wall Street tries to cash in on bets made on the right companies. But for many financial institutions the chips were the mortgages of hard-working American families, in danger of losing their homes, or now never getting a chance to live the American dream.â€ť
The result of this â€śgambling,â€ť Cuomo later said, was that â€śA slight increase in a rate can be a burden, or it can mean that they literally cannot afford to buy a home, and that will be a tragedy that goes far beyond the crashing of the stock market.â€ť
â€śCrashingâ€ť? Markets arenâ€™t in recession, let alone a crash. Thursdayâ€™s triple-digit drop (213 points) came only a few days after a triple-digit increase (505 points from August 6th â€“ August 8th). On top of all of this, the three big markets are up for the year. The Dow is up 6.2 percent, while the S&P 500 is up 2.5 percent and the Nasdaq is up 5.4 percent.
Still, Cuomo presented the tale of Gary and Heidi Cecere, a couple in upstate New York who had their mortgage pulled when attempting to purchase a house. Although a mortgage isnâ€™t a constitutional right, Cuomo played on viewersâ€™ emotions with interviews of the Cecere children lamenting how nice it would have been to â€ścome home to my own room, my own bed, and a big yard.â€ť
Gary Cecere went on to talk about the grand plans they had for the house: â€śWe were gonna put a pool â€¦ right here â€¦ maybe a little front porch.â€ť
The Cecere family was trying to purchase a $410,000-dollar home and then add a pool and a front porch. The median price of a home in New York State is $250,000 as of June 2007, according to the New York State Association of Realtors. Yet Cuomo didnâ€™t question the price of the home the family was seeking.