Subprime Nightline

Maybe it was the holiday shortened week or maybe someone slipped something into somebody's coffee, but Nightline reporters Vicki Mabrey and Eileen Murphy seem as clueless as subprime "victim" Edward Jordan in this Nightline report from last week.

Come on Nightline, you're supposed to be one of the smart ones! What is this?

In another sad story about another homeowner who might lose their home due to the ever-widening mess that is the U.S. mortgage market, these Nightline reporters merrily skip past the "elephant in the living room" in Mr. Jordan's housing story:

The man paid $30,000 three decades ago and now he owes $375,000!

Yes, they were probably just looking for yet another story about the subprime mortgage mess, but, jeez, maybe it would have been appropriate to say a word or two about the irresponsibility of the owner who has clearly lived beyond his means for many years.
The opening segment of the report makes clear where the blame should not lie - after all, when you think about it, everyone is entitled to their own goldmine as long as they own their own home.

Edward Jordan should be sitting on a goldmine. Thirty years ago, when others saw poverty and crime in the Bedford Stuyvesant section of Brooklyn, N.Y., he saw opportunity. He bought a four-story brownstone at auction for $30,000; since then, he says, property rates have gone "through the roof."

Jordan should be set for life, with his investment now appraised at $750,000. Instead, he's holding a financial time bomb that threatens his golden years and his only economic asset.

The difference between a goldmine and real estate is that, unless you sell your house, the only way to get at all that money is to take out a loan - an important distinction that seems lost on both these reporters.

It seems that about 90 percent of the comments for the online version of this story point out the personal responsibility deficiencies in this report. It's actually kind of refreshing to read through some of these comments - maybe there is some hope.

In a partial defense of Ms. Mabrey's work, she did do a good job of bashing Angelo Mozilo of Countrywide Financial and, during a discussion about incentives with a former Countrywide employee, asked whether there were ever any contests to see who could sell "the most fixed rate loans that were best for the customer". It sounded like she was joking, but, then again, maybe she wasn't.

Vicki and Eileen - you two may have some 'splainin to do when Martin Bashir and Terry Moran get back from their holiday break.