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No One Was Safe from the Mortgage Crisis

by Mark Wellborn

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Perhaps one of the last people that you would expect to fall victim to the sub-prime mortgage crisis would be a journalist that warned it was coming.

In 2004, NY Times business reporter Edmund Andrews bought a home in Silver Spring that he couldn’t afford and waded neck-deep into sub-prime mortgage hell. Two years later, he had a mountain of credit card debt and his relationship with his fiancée was falling apart.

Andrews (now seven months behind on his mortgage payments) wrote about his experience in a recent NY Times magazine piece, and the article reveals that the mortgage crisis affected even the most informed of people.

From the article:

“If there was anybody who should have avoided the mortgage catastrophe, it was I. As an economics reporter for The New York Times, I have been the paper’s chief eyes and ears on the Federal Reserve for the past six years. I watched Alan Greenspan and his successor, Ben S. Bernanke, at close range. I wrote several early-warning articles in 2004 about the spike in go-go mortgages. Before that, I had a hand in covering the Asian financial crisis of 1997, the Russia meltdown in 1998 and the dot-com collapse in 2000. I know a lot about the curveballs that the economy can throw at us.”

The full article can be read here. It is long, but well worth the time.

This article originally published at https://dc.urbanturf.com/articles/blog/no_one_was_safe_from_the_mortgage_crisis/928

5 Comments

  1. me said at 6:52 pm on Tuesday May 19, 2009:

    I read this article and I thought it was a very good read.  He bought a house he couldn’t afford and
    acquired credit card debt he couldn’t afford to pay back (almost $50K at one point).

    I feel bad for people who are in bad financial situations because of medical bills or something.  But this guy doesn’t get my sympathy at all.  He and his wife lived beyond their means, plain and simple (to the tune of $3000/month).

    And now Obama wants us to bail out this irresponsible jackass.  Great.

  1. Jan Johnson said at 10:45 am on Wednesday May 20, 2009:

    I can’t help but wonder if this is not an indication that Mr. Andrews doesn’t fundamentally understand a balance sheet. If that’s the case, why on earth does the times have him as economics writer?

  1. Tim said at 12:27 pm on Wednesday May 20, 2009:

    This whole mess goes far beyond numbers… Its a twisted tale of materialism, societal pressures and an “American” sense of entitlement. Knowing better does not necessarily equate to doing better.

  1. nobody said at 9:25 pm on Thursday May 21, 2009:

    Read Megan McArdle’s article from The Atlantic today for further insights.  He was not remarkably candid about his troubles, he left out two bankruptcies his wife filed to discharge debts.  The second one while married to him in 2007.

    http://meganmcardle.theatlantic.com/archives/2009/05/the_road_to_bankruptcy.php

  1. Kevin said at 12:34 am on Thursday May 28, 2009:

    Tim has it right.  His particular story was one of love and “re-starting” as it was of suffering through the financial crisis.  It does show that no one is immune though.  What was crazy about it - IMO - was how he just kept refinancing…I guess he, obviously, was not the only one though.

    http://www.housingbubblenews.com

Comments are closed.

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