ABC: Stock Market 'Crashing,' 'Legalized Gambling' Ruins Family's Mortgage
In the media frenzy over housing and the markets, ABCâs Chris Cuomo broke new ground August 13. His âGood Morning Americaâ report about the âdrama on Wall Streetâ disparaged the stock market â a market he said was âcrashing.â
âTo a certain extent the stock market has always been a form of legalized gambling,â Cuomo said, âwhere 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
The result of this âgambling,â Cuomo later said, was that âA 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
âCrashingâ? Markets arenât in recession, let alone a crash. Thursdayâs 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 isnât a constitutional right, Cuomo played on viewersâ emotions with interviews of the Cecere children lamenting how nice it would have been to âcome home to my own room, my own bed, and a big yard.â
Gary Cecere went on to talk about the grand plans they had for the house: âWe were gonna put a pool âŠ right here âŠ maybe a little front porch.â
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 didnât question the price of the home the family was seeking.