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Today's Stories March 8-9, 2008 Weekend Edition JoAnn Wypijewski The Only Way to Fight the Clintons Mike Whitney Sorting Through the Rubble in Post Bubble America Peter Morici Fed and Treasury Fiddle as Economy Plummets Jonathan Cook The Meaning of Gaza's Shoah Steve Niva Behind the Israeli Escalation in Gaza Bill and Kathy Christison Crisis over Teheran's Alleged Nuclear Plans Nearing Climax Hervé Do Alto and Franck Poupeau Bolivia: Morales is Checked Eric Walberg To Leave and Stay at the Same Time: Putin to Medvedev to…? Scott Johnson City of A Thousand Foreclosures Mark Scaramella James Brown's Gate Bill Clinton President Clinton's Remarks on Naming William M. Daley as NAFTA Task Force Chairman Poet's Basement St. Thomasino, Engel, Davies and Willson March 7, 2008 Patrick Cockburn Why Iraq Could Blow-Up in John McCain's Face Robin Blackburn Question for Barrack Obama: Why Afghanistan is the 'Right War'? Saul Landau The Stupid Economy Binoy Kampmark When Competition is Good: McCain and the Muddled Democrats Chris Floyd Crushing the Ants: Admiral Fallon and His Empire Andy Worthington Spanish Drop "Inhuman" Extradition Request for Guantánamo Britons Will Potter Before the Smoke Even Clears in Seattle: Bringing Out the T Word Eric Walberg To Leave and Stay at the Same Time: Putin to Medvedev to…? March 6, 2008 Vincent Navarro The Next Failure of Health Reform Forrest Hylton High Stakes in the Andes: Colombia's Cornered President Peter Morici Why the Dollar is So Cheap George Ciccariello-Maher Counter-Attack of the Bureaucrats John Ross Taxi! Taxi! The Dark Side of the Oscars Jacob Hornberger No Standing to Lecture on Justice Paul Watson Illegal Japanese Whaling by the Numbers Dan Bacher Off the Deep End Website of the Day A Katrina Reader Online   March 5, 2008 Cockburn / St. Clair A Great Day for John McCain (and Maybe Nader) Joanne Mariner After Guantanamo Fidel Castro The Raid on Ecuador: Underestimating Rafael Correa Christopher Brauchli The Turkish Invasions Steven Sherman Obama and the Prospects for a Renewal of the Left Dave Lindorff Busting Bush & Co. in New England James Murren Bombing Somalia Adam Engel Necropolis Now Website of Day Remember Song   March 4, 2008 Wajahat Ali Mumbo Jumbo: Naming Names with Ishmael Reed William Blum How Could Hillary Have Known? Bill Quigley The Cleansing of New Orleans Ralph Nader The Prince Harry Solution Patrick Irelan Oil and Health in Venezuela James J. Brittain / R. James Sacouman Uribe's Colombia is Destabilizing a New Latin America Norman Solomon The War Election Jacob Hornberger Hillary in Waco: the Missing Apology Andy Worthington Guantánamo and the European Parliament Mike Averko Kosovo and the Press Website of the Day Tex-Mex Primary   March 3, 2008 Jennifer Loewenstein Gazan Holocaust Alan Farago American Politics and the Faltering Economy Richard Gott Colombian Deaths in Ecuador Wajahat Ali Who Speaks for a Billion Muslims? Analyzing the World Gallup Poll with John Esposito Paul Craig Roberts The Mukasey Conspiracy: a Bi-Partisan Attack on the Constitution Robert Weissman When Multinationals Say Adieu Uri Avnery Good Morning, Hamas Martha Rosenberg When Your Meat is a Downer Eva Liddell Leave the Next Dance for Bill Michael Donnelly Will Ferrell Does Flint Website of the Day Muddy Waters: Train Fare Home Blues   March 1 / 2, 2008 Alexander Cockburn The Race Card Paul Craig Roberts The Political Trial of Don Siegelman Kathleen and Bill Christison Nader the Best Antidote to American Imperialism Nelson P. Valdés Cuba After Fidel Christopher Brauchli Meet Mr. Nursultan Nazarbayev: Friend of Bill, George and Dick Ron Jacobs Inside the Secret City: Bomb Making at Oak Ridge John Ross The New Conquistadores: Spain's Reconquest of Mexico Robert Fantina Posturing Over Patriotism: Obama and Those Lapel Pins Robert Weissman Hidden in Plain Sight: Human Rights Hypocrisy Mohammed Omer Fear in Gaza Remi Kanazi Barack Obama and the Politics of Xenophobia Bob Jackson Why is Yellowstone Destroying Its Bison Herd? Richard Rhames Casual Threats: Loaded with Mercury Franklin Lamb Lebanon Awaits the Arrival of the USS Cole Rannie Amiri Showboat Diplomacy: US Warships Steam Toward Lebanon David Michael Green The Three Faces of Hillary: the Politics of Flim-Flam Conn Hallinan Notes from the Southern Cone Faheem Hussain Prince Harry of Afghanistan and the Meaning of Normalcy Poets' Basement Gibbons, Orloski, Gardner and Ford Website of the Weekend The Palestine Chronicle Needs (and Deserves) Your Help!     February 29, 2008 Matt Gonzalez The Obama Craze Jonathan Cook Academic Freedom? Not for Arabs in Israel Joshua Frank Obama and Israel Anthony DiMaggio The Unilateral Presidency: Signing Statements and the Rollback of American Law Linn Washington, Jr. Cop Abuse in America Binoy Kampmark Hubris and Nemesis Robert Bryce Energy Efficiency May be a Good Thing, But It Won't Cut Energy Use Sonja Karkar Australia's Government Continues Its Love Affair with Israel Dave Lindorff A Manchurian Candidate in the White House? Obama or Bush? Website of the Day Olduvai George   February 28, 2008 Patrick Cockburn "Iraq" Falls Apart Fred Gardner The Birth of NAFTA Michael Levitin The Crisis in Kosovo is Just Beginning William S. Lind The Fake State of Kosovo David Macaray A Ray of Hope for Organized Labor Stephen Fleischman Nader's Latest Run: Monkey Wrench or Cattle Prod? George Wuerthner The Myths of Forest Health: Why Ecological Logging is an Oxymoron Laura Carlsen The North American Union Farce Carl Finamore Why the Delta-Northwest Deal Hasn't Taken Off Michael Dickinson The Day I Bombed the House of Commons Website of the Day Plane Stupid   February 27, 2008 David Rosen Playing the Race Card: Obama, Love Across the Color Line and Political Dirty Tricks Vijay Prashad Bomber John: McCain and the 100 Year War Harvey Wasserman Incident at Turkey Point: Did Florida Go to the Radioactive Brink? Andy Worthington Guantánamo's Shambolic Trials: Pentagon Boss Resigns, Ex-Prosecutor Joins Defense Wajahat Ali Pakistan for Sale: an Interview with Ayesha Siddiqa on Pakistan's Military Economy Peter Morici The Auction-Rate Securities Fiasco: a Drama of Greed and Betrayal Stephen Philion Conspiracy Theory, Fears of Betrayal and Today's Anti-War Movement Michael Donnelly Obama by Unanimous Decision Erica Rosenberg / Janine Blaeloch After the Land Deals: Will There be Any Wilderness Left to Protect? Website of the Day Dress Blues   February 26, 2008 Debbie Nathan Confessions of a Gitmo Guard Alan Dershowitz v. Frank Menetrez On Finkelstein Harvey Wasserman How Ohio Got Nuked Michael Colby Ralph Nader vs. the Fundamentalist Liberals Gary Leupp Condi vs. Putin on Bullying Belgrade David Orchard The New Conquistadors: Canada in Afghanistan Martha Rosenberg The Big HRT Fran Shor The Electoral Circus and Nader's Sideshow Serge Halimi The Dom Perignon Socialist Manifesto: Bernard Henri-Levy's Plan for the French Left Global Balkans Neo-Liberalism and Protectorate States in the Post-Yugoslav Balkans: an Interview with Tariq Ali Website of the Day Texistentialism   February 25, 2008 Roger Morris A Death in Damascus Anthony DiMaggio Military Bases, the Media and the Democrats Ralph Nader Why I'm Running Patrick Cockburn Iraq Broils Paul Craig Roberts Kosovo and the Empire Crazies Peter Morici Bernanke's Failing Policies: a Long Recession Looms Dave Lindorff General Welch's Whitewash: What We Still Don't Know About That Minot Nuke Incident Saul Landau / Farrah Hassen Fanatics, Mountebanks and Drillers: a Bloody Oil Film Heather Gray James Orange, Civil Rights Legend Robert Weitzel Accomodating Torture John Halle Kucinich Goes Down Website of the Day Do the Trunk Monkey! February 23 / 4, 2008 Alexander Cockburn The Mushrooming Clouds That Hang Over McCain Paul Craig Roberts Obama and Global Trade Wajahat Ali Omissions of the Commission: an Interview with Phillip Shenon on the 9/11 Commission Ralph Nader Neutering the FDA Jürgen Vsych "What Was Ralph Nader Thinking?" Fidel Castro Watching the US Presidential Campaign from Havana Andy Worthington Britain's Guantánamo David Macaray Unions Under Assault Jeremy Scahill The Real Story Behind Kosovo's Independence David Krieger Stanley Sheinbaum Caging the Cold War Monster Ron Jacobs Building for the Future Michael Garrity The Last, Best Hope for the Northern Rockies Brian McKenna Higher Ed's "Civic Engagements" Get Dumbed Down Missy Beattie Over the Hill with John McCain Fred Gardner American College of Physicians Takes Pro-Cannabis Stand (Mostly) Boris Kagarlitsky The Growth of the Russian Labor Movement Mike Ferner Kick That Barrel Dan Bacher On the Trail with the Border Angels Christopher Ketcham Hillary Goes Where Obama Fears to Tread Poets' Basement Davies and Buknatski Website of the Weekend Obama Mariachi   February 22, 2008 Mike Whitney The Bonfire of Capital Jason Hribal Elephants and the Circus: The Story of Janet Liaquat Ali Khan Arresting Musharraf Joshua Frank That Obama Glow: the Nuclear Industry's Golden Child Dave Lindorff Vicki's John: Ask Not What She Did for Him, Ask What He Did for Her! Liliana Segura When Torture is Old News: McCain's Blonde Diversion Robert Fantina Castro, Bush and Cuba: a Fiasco Waiting to Happen? Yifat Susskind The ABCs of Death: Bush vs. Africa's Women Norm Kent Pushing 60 with Pot Website of the Day Bush Gets Down in Liberia February 21, 2008 Saul Landau Fidel Steps Aside Elizabeth Schulte Left Behind, With No End in Sight: America's Long-Term Unemployed Helen Redmond Health Care as a Human Right Benjamin Dangl Undermining Bolivia Michael Levitin Kosovo's Dilemma Liam Leonard Fear and Loathing on the Emerald Isle Patrick Irelan Land and Food in Venezuela Linn Cohen-Cole Poor Ohio: a Second Letter to Hillary on Her Ties to Monsanto Michael Simmons Daydream Believer: John Stewart, the Miles Davis of Folk Music CounterPunch News Service A Message from the Women of Okinawa to US GIs Website of the Day Cop Abuse in Shreveport   February 20, 2008 Paul Craig Roberts Lies and Spies Paul Krassner My Brief Encounter with Fidel Castro Fawzia Afzal-Khan The Pakistani Elections Farzana Versey The Great Dictator: Musharraf, Peace and the Autumn of the Patriarch Allan Nairn Dying for a Second Round: Israel's New Plan to Attack Lebanon John V. Whitbeck If Kosovo, Why Not Palestine? Niranjan Ramakrishnan A Balcony Seat to Our Own Balkanization? Steve Eckardt Cuba Sans Fidel: No News is Big News Lee Sustar Union-Busting at Freightliner Mike Ferner How Sick of It are You? Website of the Day The US Military Index   February 19, 2008 Uri Avnery Blood and Champagne Paul Craig Roberts Paying Insurgents Not to Fight Gary Leupp The Independence of Kosovo Fidel Castro The Moment Has Come David Macaray Management's Dirty Little Secret Reza Fiyouzat Buck the Circus! The Left and the Elections Valerie Morse The New Zealand Terror Raids: Land of the Long White Lie Walter Brasch Bush on Safari Website of the Day Don't Think Twice, It's Alright   February 18, 2008 Wajahat Ali Free Pakistan: an Interview with Imran Khan Diana Johnstone NATO's Kosovo Colony Paul Craig Roberts What Do We Stand For? Andy Worthington Gitmo: "We're Making This Up as We Go Along" Debbie Nathan Bernie Ward's Sex Tapes Anthony DiMaggio Following the Money Trail: the Democratic Party and the Business of Elections Bill Simpich Ten Years Ago, People Power Stopped Clinton in Iraq Eva Liddell A Short History of Super-Delegates: Hope, Yes! But Pay in Cash Christopher Brauchli The President Who Couldn't Keep His Word: Short-Changing Veterans Stephen Soldz Wikileaks is Under Attack! Johann Rossouw The Ouster of Thabo Mbeki: South Africa and the Costs of Neoliberalism Website of the Day Sick of It Day!   February 16 / 17, 2008 Alexander Cockburn The Terrorists Still at Ground Zero, 7 World Trade Tower, Lower Manhattan Ralph Nader We the Corporations ... David Macaray The Big Buy Out: Did GM Drive Another Nail in Labor's Coffin? William J. Peace Wheelchair Dumping Ron Jacobs War on the Psyche: Shellshock and Redemption Diane Christian War Corrupts Alan Maass Oil, Blood and Greed: Taking Upton Sinclair to the Big Screen (and Beyond) Ramzy Baroud Iraq and the US Elections Michael Donnelly Genitalia First! Old Guard Feminists Play the XX Card Cpt. Paul Watson The Art of Finding Whalers James L. Secor China Diary: Spring Festival and New Year 2008 Eve Bachrach Bush Returns to Africa Nikolas Kozloff Hugo Chávez's Anti-Imperialist Army Stephen Gowans Steven Spielberg, Faux-Humanitarian Missy Beattie To Vote or Not to Vote? David Michael Green Warming Slowly to Obama Wajahat Ali Attack of the Info-tainment Circus Poets' Basement Gibbons, Willson, Mickey Z., Orloski and Reuther Website of the Day Yellowstone's Bison Need Your Help--NOW!     February 15, 2008 George Szamuely The Absurdity of "Independent" Kosovo Patrick Cockburn Ground-Truthing the Surge: Is the US Really Bringing Stability to Baghdad? Wajahat Ali Pakistan is Burning: an Interview with Steve Coll on the Taliban, Bin Laden and the Bush Administration Mike Whitney Henry Paulsen's Wild Ride on the Economic Hindenberg Alan Farago God and the Democrats Chris Genovali Alberta's Black Gold Rush Jacob Hornberger Courting Injustice: Scalia on Torture Dave Lindorff Snoops Always Ring Twice: Bush's Protect America Bill Bull Website of the Day Live From the Land of Hopes and Dreams     February 14, 2008 Kathleen and Bill Christison Palestine in the Mind of America Mike Whitney Swan Song for NATO Clancy Sigal Strike Notes from a Screenwriter George Wuerthner A Bloody Sham: the Yellowstone Bison Slaughter Peter Morici Is Bernanke Headed for the Exit? John Ross Drug War Mayhem Boils Over from Border to Border Allan Nairn Mafia Rules in the Middle East: If You're Big Enough, You Can Whack Anyone Rannie Amiri Lebanon's Warmongers Niranjan Ramakrishnan The New Tractatus: Where Wittgenstein Meets Feinstein Donna Volatile Be Careful What You Vote For, You Just Might Get It Seth Sandronsky The Student Squeeze: Fighting California's Tuition Hikes Website of the Day Conventions: the Land Around Us   February 13, 2008 Nikolas Kozloff Meet John McCain: Mr. Big Stick in Latin America Alan Farago Hell to Pay: Warren Buffett on the Goal Line Christina Kasica King's Dream Foreclosed: the Subprime Crisis in Black America Vicente Navarro How to Read the U.S. Primaries Hall Greenland Australia's Finest Hour Lee Sustar Strange Stimulation: Too Little for Those Who Need It Most David Macaray The Writers' Strike Finally Ends Roderick Frazier Nash Celebrating Wilderness Patrick Irelan Hugo Chávez and High Anxiety at the NYT Anthony Papa Mean Mister Mukasey: AG Tries to Block Crack Cocaine Releases Carl Finamore Another Parade Passes Me By: Don't Let Your Movement be Coopted by Politicians Website of the Day John He Is   February 12, 2008 Frank J. Menetrez The Case Against Alan Dershowitz Paul Craig Roberts War Without End Dr. Trudy Bond The Elephant at Gitmo: Camp 7 and the Torturer's Shrink Andy Worthington The Guantánamo Six: Why Charge Them Now? What About the Torture? Col. Dan Smith The Psychology of Killing: Close In or Far Away? Ronnie Cummins Globalization: Standing at the End of the Road Ralph Nader Open the Government John V. Walsh Antiwarriors, Divided and Conquered Dave Lindorff Obama and Progressive Change: Let's Hope the Movement Transforms the Candidate Michael Donnelly Who's Pimping Whom? The Clintons' Selective No Talk Rules Ron Jacobs La Lucha Continua: Castro's "Life" Ben Tripp Beggars Collide Website of the Day Springsteen and Youngstown   February 11, 2008 Cockburn / St. Clair Lessons for Obama: When is a Delegate Not a Delegate? Wajahat Ali A Discussion with Walt and Mearsheimer on the Israel Lobby Ray McGovern Waterboarding for God and Country Allan Nairn The Shooting of Jose Ramos Horta Uri Avnery An End Foreseen? Chris Floyd American Psycho: the Meaning of Mitt Romney's Exit Speech Martha Rosenberg School Lessons in a Lunchbox: Lunchmeat from Tortured Cows Stephen Fleischman The Bonnie and Clyde of American Politics Marc Lamont Hill Not My Brand of Hope Liliana Segura Obama and Torture: the Sounds of Silence and Equivocation Peter Morici Challenges for the New President Christopher Brauchli A Drug Rant from a Former Taker Website of the Day Annie vs. the Blue Angels   February 8 / 10, 2008 Paul Craig Roberts Does the GOP Have Aces Up Its Sleeves? Patrick Cockburn Will Moqtada al-Sadr's Truce Hold? Mike Whitney The Great Bust of '08 Anthony DiMaggio How the Press Covers Waterboarding Andy Worthington The Guántanamo Trials: Where are the Terrorists? Linn Cohen-Cole Hillary, Will You Renounce Your Ties to Monsanto? Firmin DeBrabander Notes from the Foreclosure Front: Suing Your Way to Solvency Cpt. Paul Watson The Other Whaling Industry: How Greenpeace Cashes In on the Suffering and Deaths of the Great Whales Kenneth S. Pope Why I Resigned from the American Psychological Association Jacob G. Hornberger American Soldiers Will Pay the Price for Bush's Torture Policy Robert Bryce Beyond Group Think on Climate Change: If More CO2 is Bad ... Then What? P. Sainath The Last of the Buccaneer Editors Allan Nairn Give Me Back My Land Fred Gardner / Pebbles Trippet "The District Attorney of Shasta County Doesn't Know the Law!" Andrew Wimmer Growing Up Catholic: Ignorance is Death Robert Fantina America's Disgrace: the Case of Omar Khadr David Michael Green Partycide in Six Easy Steps: Watch the Democrats Destroy Themselves Kevin Zeese Is Dennis Kucinich Being McKinney'd? Peter Morici Wall Street Gives Bernacke a Vote of No Confidence Chris Driscoll Could Nader be the Come-Back Kid of 2008? Prairie Miller Black August: Bringing George Jackson's Life to the Screen Poets Basement Davies and Buknatski   February 7, 2008 Patrick Cockburn Why Baghdad Will Explode Again Bill Christison Potholes Bigger Than Ever for Palestinians David Anderson NBC's "To Entrap" a Predator: Perverting Justice for the Sake of Ratings Ron Jacobs Innocent Flesh: Recruiting Kids to Kill Nikolas Kozloff Hugo Chávez's Coca: It's the Real Thing Jane Rockefeller The Moral Economy of an Anti-Poverty Foundation Andy Worthington On Waterboarding: Two Questions for Michael Hayden         Subscribe Online

March 8-9, 2008 City of a Thousand Foreclosures BY SCOTT JOHNSON For most of 2007, Stockton, Calif., -- once known as “Fat City” --  topped all lists of the American cities worst hit by the housing crisis. As of last summer, one out of every 27 homes in Stockton was in foreclosure--an increase of 256 percent over the previous year. The fact that Detroit -- a rust-belt city well known for its long-term economic collapse -- took the lead in foreclosures late last year only goes to show the depth of the crisis in Stockton. But the foreclosure crisis in Stockton didn't come out of nowhere. It's only the latest chapter in the roller-coaster ride that the city has been through over the past decade. I grew up in Stockton and lived there through the mid-1990s. When I left, the city was still struggling to revive after the early '90s recession, and was best known for its incredibly high crime rate. That hasn't changed--in 2005, Stockton had the highest violent crime rate in California, putting it ahead of Oakland, Los Angeles and San Francisco. What did change, however, was a sense that the city was getting back on its feet and In the late 1990s, the shopping malls often seemed desolate, with surprisingly few shoppers and storefronts closing faster than they were opening. More recently, though, business and development thrived with the arrival of more big box retailers, as well as a $500 million downtown revitalization project that included the construction of a new arena for live performances and a new stadium for the minor league baseball team. Downtown Stockton went from being notorious as a center of crime and poverty to a place where families went for weekend entertainment. But as it turns out, much of this resurgence was built on qucksand. Stockton's growth was based on the booming housing market, which was spurred large part by relocating Bay Area residents looking for a home they could afford. With Stockton within a 90-minute drive of San Francisco -- although it takes up to an hour longer during rush hour and bad weather -- the city's relatively low cost of living, combined with the relatively high wages for Bay Area employees, made it seem ideal for relocation. During the dot-com boom of the late 1990s, people from around the country flocked to the Bay Area to cash in on the new gold rush. But after the bubble burst, the early 2000s saw cities like San Francisco and Oakland shrink in size. Meanwhile, Stockton's population grew by 17 percent, from 243,000 to 285,000. Considering that the median home price in San Francisco in 2000 was $566,000, but only $133,000 in San Joaquin County, where Stockton is located, the attraction was clear. According to Stockton's main newspaper, the Record, "By 2001, Stockton real-estate agents reported that eight out of 10 home buyers were coming from the Bay Area." These Bay Area emigrants were people who mostly couldn't afford a half-million-dollar mortgage in San Francisco. For a generation of parents who don't expect to see their children to earn more than they do, home ownership means at least having something to pass on --  so for many Bay Area workers, the hot summers of the Central Valley and the exhausting commute were worth it. An increase in demand for housing due to an influx of higher-income homebuyers, along with an aggressive development plan aimed at attracting new buyers, caused a speculative bubble. By the end of 2006, the median home price in the county had nearly tripled since the beginning of the decade to $385,000. According to a study from November of last year, the average family in San Joaquin County couldn't afford 95 percent of the homes on the market in the county. Home ownership became virtually unattainable for them. Once prices maxed out and the bubble burst, there was a surge in defaults, and mortgage holders couldn't sell the homes they foreclosed on. Many homebuyers and developers are now thinking twice before getting into this mess, which puts Stockton's future growth plans in jeopardy. But this is only part of the story. It wasn't only an influx of outsiders that created the housing bubble. The root of the problem in Stockton is the same as everywhere else -- people were convinced to buy homes at inflated prices, reassured by a whole cast of unscrupulous characters that everything would work out. The realtors, lenders and banks--and the corporate boards that oversaw the whole process and orchestrated hefty profit margins out of it -- are responsible for this debacle. A recently retired escrow manager at a title company in Stockton related to me how the industry set up new homebuyers for failure. "Almost every single day, I would see a young couple in their late 20s or early 30s who were buying their first home and were in way over their head," she says. "When I went over their contract with them, I would invariably find something they hadn't agreed to, like a variable interest rate or hidden fees that hadn't been explained." In fact, it wasn't uncommon for a homebuyer to have to unexpectedly come up with thousands of dollars in fees in order to close the deal -- even when they had been told that no down payment was required for the mortgage. Some of these were "garbage fees"--which included, for example, the lender charging hundreds of dollars for printing out the paperwork for the contract. But this was trivial compared to the unexpected rise in mortgage payments built into the contracts on variable rate loans. The former escrow manager told me that when realtors or lenders were called on to explain the full implications of the contracts, they always found a way of convincing buyers that it would work out in their best interest. As she explained, "They would say, 'Interest rates are going down, the price on your home is going up, your salary is going to increase, so this will all work out. You can trust me.'" Of course, none of these things about interest rates or rising salaries were actually going to happen. But for a lot of people, they were facing the final obstacle to getting their dream home and were therefore willing to believe the lenders -- and in any case, they were already committed to buying and couldn't see how they could back out. "The problem," the former escrow manager told me, "was always that it was a Tuesday or a Wednesday, and they had to be out of their apartment on Saturday or Sunday. So they were basically pressured into making a decision at the last minute that they weren't prepared for." Once the variable interest rates started climbing, homebuyers could no longer pay their mortgages and defaults ensued. Capitalist crises don't merely create wreckage in their immediate path. They also indirectly affect all sorts of people who never saw them coming. So while the worst hit are people who are losing everything because they are stuck with a skyrocketing monthly mortgage payment, renters are also facing new difficulties. Increased demand is driving up the cost of renting, making it increasingly difficult, even for those with access to vouchers for low-income families, to find an affordable apartment. There have also been stories about renters being evicted from foreclosed properties. With no power to stop the eviction, they face demands that they move within days, and may struggle to get a refund for paid rent and security deposits. Beyond this, the growing number of mortgage defaults in places like Stockton are causing an even deeper financial crisis, which is having an effect on the world economy. The mortgage crisis will, thus, cause the coming recession to be that much worse -- and the layoffs and wage cuts that are a product of the economic downturn will lead to further declines in home prices and put a strain on even more households struggling to pay off mortgages. It is a vicious circle--and the culprit is the capitalist free-market system. Scott Johnson writes for Socialist Worker http://www.socialistworker.org/ where this article originally appeared.

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