English subtitles for clip: File:2012-09-29 President Obama's Weekly Address.ogv
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1 00:00:05,500 --> 00:00:07,233 The President: Hi, everybody. 2 00:00:07,233 --> 00:00:10,233 Four years ago this month, a crisis that started out on Wall 3 00:00:10,233 --> 00:00:13,166 Street almost brought down our entire economy. 4 00:00:13,166 --> 00:00:16,500 The nation's biggest banks were days away from failing. 5 00:00:16,500 --> 00:00:19,900 The stock market -- and millions of American retirement accounts 6 00:00:19,900 --> 00:00:21,532 -- were in free-fall. 7 00:00:21,533 --> 00:00:22,934 Credit froze. 8 00:00:22,934 --> 00:00:24,100 Lending stopped. 9 00:00:24,100 --> 00:00:27,033 And businesses large and small didn't even know if they'd be 10 00:00:27,033 --> 00:00:28,800 able to make payroll. 11 00:00:28,800 --> 00:00:30,834 It was a moment the likes of which few Americans had 12 00:00:30,834 --> 00:00:33,000 seen before. 13 00:00:33,000 --> 00:00:36,500 Today, we know the biggest cause of that crisis was reckless 14 00:00:36,500 --> 00:00:38,734 behavior in the housing market. 15 00:00:38,734 --> 00:00:41,967 Millions of Americans who did the right and responsible thing 16 00:00:41,967 --> 00:00:44,199 -- who shopped for a home, secured a mortgage they could 17 00:00:44,200 --> 00:00:47,166 afford, and made their payments on time -- 18 00:00:47,166 --> 00:00:51,032 were badly hurt by the irresponsible actions of others. 19 00:00:51,033 --> 00:00:53,400 By lenders who sold loans to families who couldn't afford 20 00:00:53,400 --> 00:00:56,833 them -- and buyers who knew they couldn't afford them. 21 00:00:56,834 --> 00:01:00,333 By speculators who were looking just to make a quick buck. 22 00:01:00,333 --> 00:01:03,733 And by banks that packaged and sold those risky mortgages for 23 00:01:03,734 --> 00:01:05,533 phony profits. 24 00:01:05,533 --> 00:01:08,400 When the party stopped, and the housing bubble burst, 25 00:01:08,400 --> 00:01:11,934 it pushed our entire economy into a historic recession -- 26 00:01:11,934 --> 00:01:14,934 and left middle-class families holding the bag. 27 00:01:14,934 --> 00:01:17,899 Four years later, the housing market is healing. 28 00:01:17,900 --> 00:01:20,066 Home sales and construction are up. 29 00:01:20,066 --> 00:01:22,100 Prices are beginning to rise. 30 00:01:22,100 --> 00:01:25,065 And more than a million families who began this year owing more 31 00:01:25,066 --> 00:01:27,333 on their mortgages than their homes are worth, 32 00:01:27,333 --> 00:01:29,700 are now back above water. 33 00:01:29,700 --> 00:01:31,800 So we're moving in the right direction. 34 00:01:31,800 --> 00:01:33,500 But we're not there yet. 35 00:01:33,500 --> 00:01:35,667 There are still millions of Americans who are struggling 36 00:01:35,667 --> 00:01:39,867 with their mortgages, even at a time of historically low rates. 37 00:01:39,867 --> 00:01:42,567 Now, I know there are some who think that the only option for 38 00:01:42,567 --> 00:01:45,133 homeowners is to just stand by and hope that the market has 39 00:01:45,133 --> 00:01:46,433 hit bottom. 40 00:01:46,433 --> 00:01:48,033 I don't agree with that. 41 00:01:48,033 --> 00:01:50,567 That's why my Administration teamed up with state attorneys 42 00:01:50,567 --> 00:01:53,467 general to investigate the terrible way many homeowners 43 00:01:53,467 --> 00:01:56,300 were treated, and secured a settlement from the nation's 44 00:01:56,300 --> 00:02:00,100 biggest banks -- banks that were bailed out with taxpayer dollars 45 00:02:00,100 --> 00:02:02,767 -- to help families stay in their homes. 46 00:02:02,767 --> 00:02:05,767 And that's why we announced new steps to help responsible 47 00:02:05,767 --> 00:02:08,400 homeowners refinance their mortgages. 48 00:02:08,400 --> 00:02:11,333 Already, hundreds of thousands of Americans who were stuck in 49 00:02:11,333 --> 00:02:14,266 high-interest rate loans have been able to take advantage of 50 00:02:14,266 --> 00:02:18,066 lower rates and save thousands of dollars every year. 51 00:02:18,066 --> 00:02:19,834 That's not only good for those families; 52 00:02:19,834 --> 00:02:21,834 it's also good for our economy. 53 00:02:21,834 --> 00:02:23,734 When folks are spending less on mortgage payments, 54 00:02:23,734 --> 00:02:26,166 they're spending more at local businesses. 55 00:02:26,166 --> 00:02:28,367 And when those businesses have more customers, 56 00:02:28,367 --> 00:02:30,566 they start hiring more workers. 57 00:02:30,567 --> 00:02:33,533 But we can do even more if Congress is willing to 58 00:02:33,533 --> 00:02:35,033 do their part. 59 00:02:35,033 --> 00:02:37,700 Back in February, I sent Congress a plan to give every 60 00:02:37,700 --> 00:02:41,533 responsible homeowner the chance to save about $3,000 a year on 61 00:02:41,533 --> 00:02:44,767 their mortgages by refinancing at lower rates. 62 00:02:44,767 --> 00:02:46,834 It's a plan that has the support of independent, 63 00:02:46,834 --> 00:02:49,033 nonpartisan economists and leaders across the 64 00:02:49,033 --> 00:02:50,533 housing industry. 65 00:02:50,533 --> 00:02:52,632 But Republicans in Congress worked to keep it from even 66 00:02:52,633 --> 00:02:54,133 getting to a vote. 67 00:02:54,133 --> 00:02:55,700 And here we are -- seven months later -- 68 00:02:55,700 --> 00:02:58,100 still waiting on Congress to act. 69 00:02:58,100 --> 00:02:59,700 This makes no sense. 70 00:02:59,700 --> 00:03:03,066 Last week, mortgage rates were at historic lows. 71 00:03:03,066 --> 00:03:05,600 But instead of helping more and more hardworking families take 72 00:03:05,600 --> 00:03:09,333 advantage of those rates, Congress was away on break. 73 00:03:09,333 --> 00:03:11,834 Instead of worrying about you, they'd already gone home to 74 00:03:11,834 --> 00:03:14,100 worry about their campaigns. 75 00:03:14,100 --> 00:03:16,733 The truth is, it's going to take a while for our housing market 76 00:03:16,734 --> 00:03:18,300 to fully recover. 77 00:03:18,300 --> 00:03:20,233 But it's going to take a lot more time -- 78 00:03:20,233 --> 00:03:23,500 and cause a lot more hurt -- if Congress keeps standing 79 00:03:23,500 --> 00:03:24,700 in the way. 80 00:03:24,700 --> 00:03:27,700 If you agree with me, I hope you'll make your voices heard. 81 00:03:27,700 --> 00:03:29,232 Call your Representative. 82 00:03:29,233 --> 00:03:30,633 Send them an email. 83 00:03:30,633 --> 00:03:33,266 Show up at their town hall and tell them that when Congress 84 00:03:33,266 --> 00:03:37,433 comes back to Washington, they better come back ready to work. 85 00:03:37,433 --> 00:03:39,100 All of you are doing everything you can to meet 86 00:03:39,100 --> 00:03:40,600 your responsibilities. 87 00:03:40,600 --> 00:03:42,834 I think it's time Congress did the same. 88 00:03:42,834 --> 00:03:44,467 Thanks and have a great weekend.