Paul Barry’s report “Mortgage Meltdown”, originally broadcast on 17 September, 2007. Length 44′ 08″.
Last month an unfamiliar expression appeared in the Australia media. A “subprime mortgage crisis” was unfolding in the United States. Homeowners across America were defaulting on loan payments and economists warned of major financial fallout occurring anywhere from Paris to Beijing to Melbourne. But why should a foreclosure in Cleveland affect a hedge fund in Sydney?
As Four Corners reports, Australia, along with the rest of the world is at risk of a virulent economic virus thanks to financial globalisation where everything is interconnected through a sophisticated form of pass the parcel. And even more alarmingly, no-one knows just how bad it might get.
In “Mortgage Meltdown” Paul Barry reports on the fallout from the US subprime mortgage crisis and asks what impact it will have on Australia.