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tv   Real Money With Ali Velshi  Al Jazeera  January 8, 2015 6:00am-7:01am EST

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e story weekdays at 5pm et / 2pm pt only on al jazeera america sirs [ bells toll ] you are watching al jazeera. we begin in france where a minute's silence is being obvioused to remember 12 killed -- being observed to remember 12 killed in an attack on "charlie hebdo." this is the scene where the bells of notre dame are tolling as part of a national day of mourning.
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[ bells toll ]
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bullets. a policeman lied injuries [ bells toll ] . >> you are watching al jazeera, this is the scene in paris, where a minute's silence is being observed to honour 12 killed in an attack on satirical magazine "charlie hebdo." the bells of notre dame are tolling. today is a national day of moung for france. flags are flying at half mask across the country. police have issued arrest warrants for two brothers accused of carrying out wednesday's shooting. the kouachi brothers are accused of killing 12 people at the
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office of of satirical magazine "charlie hebdo" on wednesday. french president francis hollande chaired a crisis meeting with ministers and his predecessor nicolas sarkozy who heads the main opposition party. let's go to jacky rowland, joining us from the place de la republique in paris, where thousands gathered to hold the vigil. you are there right now on this day of mourning. give us a sense of what the mood is like there? > you may be able to hear that the two minutes ended and people are clapping. it was subdued and emotional. people stood in a circle for two minutes, linking hands. standing in a circle it's importantly the statue is of the simple marial. the symbol of the french
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republic around the statue. around the statue freedom, equality, the three planks of french society. it is people celebrating solidarity unity and determination as they stood in remembrance of the 12 killed on wednesday. >> indeed this is an attack that shocked the country and reverberated around the world as well. earlier on we saw french president francis hollande there, also asking the two minutes of silence. he has had a security meeting as well with his cabinet. what has come out of that. >> well it was a security
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cabinet meeting. francis hollande together with most senior ministers and the heads of security and intelligence agencies and also very significantly the leader of the main opposition party, the former president saabing cosy the -- sarcozy, the two men political rivals making it clear that it is not the time for politics but a government of national unity. the message coming out of the meeting is that it views this as an attack against france an attack against democracy and in the words of former president nicolas sarkozy, against civilisation itself and a clear message that every tool at their disposal is being used in the hunt to bring those suspects into custody to track them. we are getting information that that hunt for those suspects
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appears to be closing in on them according to reports we are hearing. >> jackie as we talk we can see now that it's raping where you are. -- it's raining where you are, and it's adding to the sombre mood of the nation. give us an idea of what the mood is like in the aftermath of the attack? many said it's not an attack against france but an attack against freedom of speech. >> yes, in fact people very much in shock, and still emotional. we were in many ways surprised at the level of feel that people expressed, people that didn't know the journalists and cartoonists personally but nevertheless feel personally touched by what happened. one woman who we spoke to in the
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square who worked as a psychiatric nurse was shaking as she spoke to us. she felt very deeply affected by what has happened. other people we spoke to said that these are 12 lives lost. hundreds of trends and that an attack on the newspaper is an attack on the freedom of speech an attack on the value central to the ethos of france and it was the message when i was here a few hours ago the thousands of people 10,000 or so people in the square on wednesday night. they were saying "we are charlie dash all of us are "charlie hebdo." if you attack the newspaper, the freedom of speech the fundamental french republic you are attacking every one of us
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civilized people." a sense of security and sombre mood. almost a spirit of resistance in this attack that took place in central paris on wednesday. >> as we said to jackie. it's not just in france itself but felt around the world. after that the twitter handle "jes suis charlie" went around the world and trended for some time. jacky rowland speaking were place de la republique in paris. let's go to lena the director at the carnegie middle east center. thank you for being with us. i want to get to news that broke while we were on air. we are getting unconfirmed reports that two suspects in paris in the shooting have been found.
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we believe in the aisne region half an hour north-east of paris. these were reportedly two brothers. lena what do you know of them? >> two suspects have clear links to al-qaeda. the french gof has known about them for some time. and they have links to al-qaeda and yemen and al-qaeda in iraq and afghanistan and they expressed support for the rising in iraq in 2003. they are experienced terrorists with a history, and, therefore, it's not surprising that they would be able to conduct an attack on the scale in paris. >> as you say, lina the two were known to police and french
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intelligence. why do you think this attack occurred. should there have been more security on them. there was. and the police car was parked outside the office of "charlie hebdo" when it happened. the french government foiled at least five known attempts at terrorist attacks in france prior to this one happening. i think we have to be realistic about what intelligence services security services can do. they are faced with a network of loan wolf attacks, groups that are acting very often semi-independent across a large country like france. >> we know the kouachi brothers were french citizens. a lot of people are asking how
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is it that two french citizens can carry out the attacks on their own french citizens. >> well unfortunately for these kinds of people nationalism means very little. they obviously excluded from the society that they are in france. they feel a greater affinity to global jihadism and this is a danger spreading in europe as well as elsewhere, where individuals feel they do not belong to the nation but to global terrorist, you know sense of identity. >> people patching this lina probably ask why do they not feel part of the fabric of society in which they live. it is democrat ib allowing you freedom of speech and thought. >> absolutely. france was one of the country's
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opposing friendships, the u.s. invasion in iraq 2003. france is a leading country in the coalition against the islamic state and other jihadists in syria. for terrorists and extremists france was regarded as the western imperial slot against the middle east and elsewhere. that's why the people feel we should exact revenge, as opposed to feeling they belong to it. it's great getting inside. director at the middle east center in beirut more to come on al jazeera, including polls that have closed in sri lanka, in sri lanka's closely-fought presidential election. plus more violence in yemen as the power struggle continues, we are live in sanaa with the
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should exact revenge, as opposed the power struggle continues, we welcome back. the top stories here on al jazeera... [ bell tolls ] ..a moment's silence has been observed in france to remember 12 people killed in the attack on the satirical magazine "charlie hebdo" in paris. several have been detained in the hunt for two brothers suspected of carrying out the shooting. police issued arrest warrants
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for 32-year-old cherif kouachi, and 34-year-old said kouachi, who have not yet been arrested earlier the french president held a crisis meeting with his cabinet and former president nicolas sarkozy well the sadness and shock in france has been echoed around the world. >> reporter: fro across the globe came one voice. france - you are not alone. vigils held in cities near and far from the america's asia. with condolences, condemnation. >> those who carry out senseless attacks. we will stand with the people of france. >> the attack at this time is an
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act of terror against the news organization and the freedom to report. this is unforgiveable. for reasons we cannot forgive such cowardly attacks and condemn them. >> obviously this is a horrific atrocity absolute atrocity. sadly we can expect more of this. >> in major european companies, they were quick to show solidarity. >> and we stand united with the french people against terrorism and this threat to our value the rule of law, democracy, and it's essential that we defend those values today and every day. >> reporter: muslim nationsar spoking out, posting this message saying:
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strong words from the united nations. >> it was a horrendous unjustifiable and cold-blooded crime. it was also a direct sault on the cornerstone of democracy, on the bdm and freedom of expression. >> reporter: messages of unity pour in not just in sympathy but defending the right to speak out. >> cartoonists from around the world posted some emotional drawings of their own. now, hundreds of cartoons flooded the internet following the shooting at the paris satirical newspaper that killed 12 people. using the hashtag "jes suis charlie," meaning i am charlie, in french artists shared their powerful and satirical sketches. they used them to advocate for a
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free press. one that their colleagues the french publication used. one of the most popular drawings were shared 62,000 time, within 13 hours of using the internet. it was penned by cartoonist david pope. pens and pencils were used in many. drawings some depicting sharpened retribution against attackers. a police officer has been killed in a separate shooting incident in paris. emergency services are on the scene, 4km south of the city center. interior minister bernard cazeneuve said authorities are doing their utmost to find and arrest the attacker. it's too early to draw
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connection between the attack at the "charlie hebdo" and the latest latest incident. >> to other news and polls closed in the sri lankan election. there has been reports of violence at several polling stations due to the divisions. incumbent president is popular with the sepah lease ethnic group. many threw support towards the main rival. >> charles stratford is in colombo with the latest. >> the temple has been used as a polling station. we visited many polling stations and saw a steady flow of voters coming in. from the election commission in the capital cities until 12 noon they saw around about a 50% voter turn out. particularly in the north-east of the country, recording a 25%
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voter turn out. there are reports of one level of intimidation. according to the sensors of monitoring the violence. it was an explosion of grenade. no one injured and no one claiming responsibility for the explosion, and there was an instant of bus drivers in the central area. country that had gone to try to pick up voters and were prevented them from casting the ballot. it's difficult to gauge how free and fair it was, in the capital city it's been quiet. >> to yemen where more than 10 houthi rebels have been killed. it happened when tribesman backed by the fighters attacked the gathering. let's go live to the yemeni center with omar al saleh.
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tell us about the latest attack what do you know about it? >> we know the attacks started wednesday when al qaeda fighters attacked a number of houthi targets in and around the checkpoints, as well as a few houthis taking them on the bases. the death toll is 10 a field commander from the houthi group has been killed in the attack. four vehicles were burnt. it belonged to the houthi fighters. witnesses said that they have heard loud explosions. heavy gun fire and it continued well into thursday mourning. so the situation is volatile. i have to give you an idea about whether it was a strong hold for
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al qaeda, and when they wept this last -- went in last object and the other allies retreated to the outskirts and they started a war of attrition to weaken the group. >> we are getting reports that the information minister's office - what can you tell us about that? >> yes, certainly it has. one of our producers spoke to the minister. she is not available, but said a number of armed houthis stormed the entire ministry of education, and said they were sitting in the office running. the entire lot. two days earlier they had a meeting and they were complaining about an editor for one of the state's newspapers.
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they demanded her to sack him. she said she can't. the houthis said "we can" and they went with their arms to that perp's house and asked him to resign. they told her that they would not be able to go to any one in the state, that is a member of the houthi group. it's testament to the political power. dumping their will on everyone here. >> omar al saleh, speaking to us from the yemeni capital sanaa. >> five have been killed 20 injured in a suicide bomb attack. three police men are among the dead and happened outside samarra city. it's understood the attackers were targetting police. thailand's former prime minister yingluck shinawatra is
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set to face an impeachment hearing before the country's military appointed government. she is accused of political corruption over a controversial rice scheme. there's concern the impeachment hearing would reignite tension. scott heidler reports from bangkok. yingluck shinawatra has been out of thailand's political scope since she was kicked out last may. weeks before the coup she is was disqualified as prime minister by the constitutional court over her selection of senior servants. a court saw it as politically charged rule. on friday she steps into the spotlight in which she faces impeachment. yingluck shinawatra faces charges linked to a rice subsidy programme for a subsidy launch. the idea to use rice to control prices. >> translation: the rice scheme
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of the government aims to help the poor and reduce the gap between the rich and the poor. the programme failed and cost billions of dollars. she has been accused of ignoring corruption within the programme. critics knew it would fail and push the programme through to gain support and rural ties. one of the top goals of the government is to bring the people of thailand back again. welcoming celebration between those that supported the yingluck shinawatra government. impeachment could be it in gaol. it's a test for thailand's reconciliation process. it's a dilemma. on the one hand they had to come up with answers or goods. i arrived at the post. the government ceased power. corruption they say, they have
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to come up with the proof. >> reporter: if the government feels it has the proof. it can impeach yingluck shinawatra and can take it to the next level, criminal charges. if this happens, reconciliation in the deep political divide in thailand would likely be erased seen electronics giant samsung is making a show in las vegas. they introduced new tvs and smartphones during the event, and its chief executive gave the keynote. it's been reported now. >> reporter: it is the big annual party, consumer electronics show. showcasing the gadgets set to become part of daily life. among the giants samsung
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launching a new range of internet enabled tvs, operating on the samsung system. the chief executive making clear in the keynote that his and other company's rely on making all sorts of devices internet enabled as the internet of things becomes a reality. >> each of us is at the center of our own technology universe. it constantly adapts and the changing shape as it moves through the world. >> reporter: for all its array of products samsung is recognised for market-leading smartphones. in the core area it's been hitting hurdles. samsung is by war and away the smart phone. it is losing market share, down from 32% in 2013 to 4% in the same period last year. a key problem is increasing competition in emerging markets
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like india and china. local bronze in the chinese markets have been making gains. in india, low cost phones - samsung is reported to be preparing to release a smart phone, the first after delays to run on tysan. >> i think tysan is for smart gadget like tv or cars. things like that so-called things. >> the man credited with making the global goint remains in hops after a heart attack the firm has plans for 2015 and will want to rebound from difficulties. a reminder you can go to the website and read all of our top stories, and that is the manhunt
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for the two brothers cherif kouachi and said kouachi, believed to be behind the shooting attack on the headquarters of the satirical magazine "charlie hebdo." that attack killed 12 people. stay was. -- stay with us. >> its been six years since the financial crash that sent the global economy into a tailspin. devastating the us housing market. predatory lending and a poorly regulated financial system were at the root of the crisis. but now, housing sales in some parts of the country have picked up. >> it really started in 2010 2011 in the wake of the housing bust and the foreclosure crisis that ensued. >> there were markets that were totally devastated. >> you had an unbelievable
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number of foreclosed homes. >> at foreclosure auctions like this one in georgia, competition has gotten steep. >> sold! >> what's the name of your company? >> we're private. >> but the recovery isn't quite what it seems. >> housing recoveries are typically led by buyers. and those buyers historically were typically homeowners. people who intended to purchase and live in the home. they weren't investors and it wasn't second homes. >> i don't want to be on camera >> but in 2011 2012 you started seeing firms that were backed by some of the larger private equity firms beginning to get into the market. >> who came in and bought houses by the block basically. >> we've been trying to talk to some of the investors here like invitation homes right behind me but they refused to talk to us. >> this has not been the ideal recovery. this is the only housing recovery we have right now.
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>> it's a landlord's market and rents are rising across the country. the question is: are investors jump-starting the economy or laying the foundation for a new crisis. >> right now the biggest landlords in the u.s. is wall street. >> tonight: fault lines investigates america's largest and most powerful landlords: wall street. >> atlanta is really rough right now, is very rough you know for a family to own your home. atlanta now is becoming lease and rental. >> atlanta georgia is a city that was gutted by the foreclosure crisis. six years after the crash, many residents here are still at risk of losing their homes.
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since 2008 almost 5 million u.s. homes have been lost to foreclosure. now, there are nearly two million more homeowners who are on the brink. >> eighteen years. over 18 years you've worked and poured your heart into where you live to make the house a home that you're children have grown up in. your memories are here. what do we do? we fight. >> tammy doe was fighting to keep her home of nearly two decades when it was foreclosed on and sold to a new owner at auction. >> they don't wanna hear nothing you have to say. they just feel like you just in this position because you refused to pay your mortgage. no that's not the reason. >> she believes the foreclosure was illegal, but to prove it - and win back her home - is an uphill battle. when we met,
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she was on the verge of eviction. >> you know people say the america dream is to own your own home and to have something to leave for your children. it's not that anymore. i don't see it >> if tammy doesn't win the legal fight, there's only one way she can stay in her home: to rent it back. >> do you know who owns your home right now? >> colony... colony america colony homes. >> colony american homes the home rental arm of private equity firm colony capital is now one of the largest landlords in america. >> "there's nothing more american than the dream of living in your own home. colony american homes is helping people right now to fulfill that dream." >> colony american when every home we went to it was fixed up, nice... >> the company owns over 16,000 homes in 10 states, purchased primarily from foreclosure auctions. >> "today there are fewer opportunities from strong investments, and even fewer opportunities to
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ma at colony american homes we will do both." >> now we have seen the recreation of the dream as well maybe you won't be a homeowner but we really need more people who are renters, because we over-stimulated home ownership. >> ... and for me to have to rent and never own my own home? no. can't do it. >> "we bought the house for a hundred and thirty two five." >> tammy isn't alone. her neighbors are also fighting for their homes in this predominantly african american suburb, 60% of all homeowners are underwater. predatory lenders disproportionately targeted african americans and latinos for riskier loans, including middle-income minorities who should have qualified for conventional mortgages. >> do you feel like you've been targeted? >> oh yeah most definitely. >> yes. >> definitely. >> yeah. bulls eyed out.
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>> and... and i... you know basically i just refuse to spend 20 years in the military working my buns off from dusk to dawn 7 days a week for 20 years, and come home and just give my retirement away. i'm not going to do that. >> colony bought your house for 40,000 dollars. >> uhum. >> an estimated 7 trillion dollars in housing wealth was lost in the crisis. much of it from communities like tammy's. >> you work and you work and you try to be the upholding citizen, and to guard your integrity. for them to come in and just rip it from you? that hurts. don't tell me about the american dream because i don't believe in it. >> 60% of our wealth was in our home. and then we had the predators
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suck that wealth out. they came in and took it out. that wealth had purpose. it was the engine for small business in our community. it is what educated our children. >> if you are low income or lower middle income you probably don't have a stock portfolio it was your forced savings plan. >> with stagnant wages rising debt, and tight mortgage credit, buying a home is a dream more and more people just can't afford >> homeownership is stability. it's a stake in our nation. that's been lost. we've lost that. it's all been transferred to wall street and now they're our landlords.
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>> "consider this". the news of the day, plus so much more. >> we begin with the growing
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controversy. >> answers to the questions no one else will ask. >> real perspective. "consider this". monday through thursday, 10:00 eastern. only on al j
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>> wherever the foreclosure crisis hit the hardest the wall street landlords have moved in. in some parts of southern california one in every twelve homes was foreclosed on. >> como esta? >> bien, bien. >> so nice to see you, thank you so much, gracias. >> now what's this? >> oh, really? it's a big house.
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>> esperanza rosales was in tammy's situation not long ago. the home she lost is also now owned by colony american homes. she had eight days to pack up and move 22 years worth of belongings. >> what has been the hardest thing for you since you lost your home and became a renter? >> esperanza and her family now live in a rental home owned by another corporate landlord.
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>> the new landlords have moved into communities already plagued by housing instability. housing advocates and federal officials agree: we are living through the worst rental affordability crisis in u.s. history. now communities are concerned about wall street rents. we went with esperaza and her daughter to this community meeting in south la. los angeles already has the highest rent to income ratio of any city in the country. >> at the time not only had my mom just lost our house, that we lived in for 22 years, but she also lost her job.
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>> i didn't know what to look for what to see because we have never experienced or had to go rent anywhere else. as long as she would get a moderate payment that she could afford, she would've kept the house. >> ok. i myself am a renter. i'm a member of congress but i was a teacher for 24 years so i rent even in my own community. >> democratic congress members mark takano and maxine waters have also come to learn about corporate landlords in their districts. >> in order to force you to take out a long lease, they jack up the price of month to month.. >> my lease payment is much higher than my mortgage payment was... it's hard to reach the people when you need them. but when you owe them money. oh man. they email you they call you they put notices on the front door. >> the only time she called me back was um, i needed an extension on the
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rent and she said if you don't pay by the 10th, you're gonna be... the eviction is going to start. so i had to go out take out a loan a payday loan of all things, so now i'm stuck in even bigger crisis trying to pay that back on time. it just seems like it's a sinkhole of [power play]. i'm getting into bigger and bigger debt. >> like esperanza, ursula and jeannette are tenants of invitation homes. in just a few years, the company has grown to be the largest single-family landlord in the country buying up 45,000 homes across 14 markets at a cost of 9 billion dollars. the new venture is a subsidiary of the largest private equity firm in the world: the blackstone group. >> it's like a double jeopardy where... there were families that lost their homes and at the same time they're being taken advantage of in the rental markets. the connection there i was really surprised. i thought the crisis was over. now it's 2014, the crisis continues.
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>> we already know that the industry associations for builders for the real estate industry they pour huge amounts of money into campaigns at the state and local level to defeat anything that would protect renters. now you bring in blackstone and these equity firms to join the fight on that side and you can see what a goliath we're up against. >> yeah, a few years ago, the oecd ranked 32 industrialized countries on kind of tenant security and tenant protection. the u.s. came in last. as a nation, it's a landlord friendly place >> what we need is immediate protections for renters today in the form of rent stabilization just cause eviction protections, a whole basket of policies that would have an immediate impact. >> but rising rents and affordability aren't the only concerns. >> there are also additional questions around the quality of the housing, the maintenance of the housing.
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>> this is a brand new industry. and so there is not an easy template for the tenant side and for making sure that tenants are well served, and that the homes are safe and secure. >> did you know you wanted to live here the moment you saw this house? >> yeah. >> yeah? how come? >> because i saw my kids playing here. i think that was it. that's what sold me to this house. because i knew my kids would have a wonderful place to play. >> right out front? >> it felt like home you know? >> edit novshadyan her husband, and two-year-old son moved into this rental home in sun valley california in may of 2013. >> it's a nice little house. >> edith was 8 months pregnant at the time >> this is all your stuff that's still inside? >> yeah, that's, that's my stuff. that's my fridge my table my chairs, my home. it's still here. >> less than two months later,
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they moved out. >> our water was brown yellow i mean it was dirty. we couldn't shower. the molding inside my newborn's room the molding at the bottom, that had turned brown. i mean the pipes were leaking. they said leave for 2 to 2.5 weeks and you'll come back home. we're gonna change the plumbing. a few days later i got a call they found mold inside the house. >> they came to an agreement with their landlord that they would move. >> i don't understand. they said you could move but they wouldn't - >> release my property. >> why not? >> they were going to check my stuff so i can move it out. and they kept saying we're running more tests running more tests and they've never released it. >> the landlord changed the locks and their possessions - everything from furniture to wedding albums - were left inside. the weeks turned into 6 months of calls and emails, but no real answers. >> like after being exposed to the mold my children got sick. >> we started noticing a difference. like he would have like a runny nose
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and he would have this cough. and we were thinking "is he getting sick?" is he... he's a child and... it wouldn't go away. it wouldn't go away. and then my daughter had it. my daughter... >> your newborn daughter? >> my newborn daughter had the runny nose the cough and i'm like... is he giving it to her? i mean what are the chances? and then me and my husband have it. are we always sick? >> the family is suffering from chronic flu-like symptoms that they say are a result of mold exposure. >> time and time i kept asking - tell me what type of mold it is, the pediatrician wants to know just tell me. i kept asking. every phone call every email. please tell me what type of mold it is. i'm sorry, please tell me what type of mold it is. and nothing. >> edith's landlord was not a local slumlord. invitation homes owns this property. >> there's some things you're supposed to provide right, as a landlord: clean water suitable condition how about that? like a healthy environment for a family to live in. i pay rent you know it's not like i was living there for free.
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when i wanted my stuff they said i can take my stuff but i have to sign a release releasing them from liability. >> in response to our request to comment on the novshadyan's case invitation homes wrote that the company: "...provided the family with a clean renovated home that encountered an unexpected home maintenance issue that was quickly resolved..." invitation homes also told us they repaired house along epa guidelines after the novshadyan's initial complaints and the resulting mold and asbestos tests came back negative. but they refused to release the results despite repeated requests from the family >> some of these properties were left unmaintained or abandoned for months or in some extreme cases now years. depending on the investor depending on the quality of the investor depending on the integrity of the investor some of them will actually do a really good job of refurbishing the house, and others will sort of
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put up new sheet-rock, and make them look pretty from the outside to get a renter in only to find out later that the pipes are faulty maybe there are infestations that were never taken care of, and the property really still is a problem property that probably should've been raised. >> i don't think they cared. i think to them we were just a monetary value. we weren't people. that was it. we were people paying rent.
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>> we wanted to hear directly from the industry: the financiers and business leaders who are now america's largest and most powerful landlords. >> the other thing i'd say about investing is when you go back to 08, 09 we, like most of the people in this room, we were suffering, right? because asset values had declined pretty significantly. >> many of them were gathered at this investors' conference in new york city. >> what i would tell you about the business overall you know what's gone wrong... people in this room would be shocked to hear: renovating homes costs more and took longer [laughter in the audience]. that... that definitely happened. but what went right was home price appreciation went better than expected. >> the industry leader - invitation homes denied our request for an
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interview. a new trade association - the national rental home council and several other companies, also said no. the one insider who would talk to us on camera was toni moss - a housing finance specialist who helped to launch the industry. >> there was a major shadow inventory of foreclosed homes and we thought it would be interesting to see if we could get private capital back into the market and acquire these homes and revitalize these neighborhoods. >> who is regulating this industry right now? >> well.. this... yeah that's the issue. it's not being regulated on a federal level. and therefore it's this massive granular situation where you have neighborhood regulations and then you have municipal regulations and then you have state regulations. i mean can you imagine? when you have all those properties and you're trying to pay attention to what the
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neighborhood association is requiring? so it's not that the industry is not regulated, there is a lot of regulation. it's that the regulation itself is not consistent. >> investor landlords aren't just building a new business model. they have also created a new financial product: rental backed securities. >> we are already, a handful of years after the crisis seeing the emergence of a new piece of the securitization market with weak standards just as the primary mortgage securitization market had been in the lead up to the crisis. >> so what is securitization? >> securitization is a financial tool. the bonds are backed by assets that have a cash flow. so anything where there are monthly payments coming in you can securitize. so when a tenant sends their rent check each month to their
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property management company, fees are taken out to pay for property management and other... other related fees and then what's left over is sent to the bond holders. >> mortgage securitization other kinds of securitization got really..., took a huge hit during the crisis yet you have this pent up demand... now you have this pent up demand to invest in those kinds of vehicles so lets create a new one. >> do you think securitization poses... rather creation of rental-backed securities pose the same risk as mortgage-backed securities? >> no. absolutely not. i think that mortgage-backed securities were much more complex. this is very transparent very straightforward and it's bringing a lot of players into the market. >> the first rental-backed security was introduced by invitation homes in october of 2013. since then 9 more bonds have hit the market valued at nearly 5 billion dollars.
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we reviewed the list of addresses on that first invitation homes security, and found that the sun valley home rented by edit novshadyan and her family was one of the 3200 homes on the list. >> edith do you know that this house is part of blackstone's security? >> i don't know. i didn't even know that it was owned by blackstone. i just knew that we were renting from invitation homes. >> do i see the real risk that we are heading down the same path? that the lessons learned - the wrong lessons learned - that you can cherry pick the best loans or the best rental properties to keep for yourself and securitize the worst is happening or can happen? i think that is a very real risk. >> if something goes wrong and bondholders aren't getting what they are supposed to get each month and the bond defaults, bondholders through their special servicer can seize the homes, so they can take the underlying
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collateral. >> that's not very secure for the tenants. >> we think there need to be more protections in that area. we think that's one of the risks and vulnerabilities here.. is that tenants could be displaced if things don't go as planned. >> back in washington, congressman mark takano, who sits on the house financial services committee is a lone voice raising questions about new corporate landlords. >> i represent an area that suffered through the subprime mortgage crisis of the mortgage-backed securities. i am concerned about how fast these new types of rental-backed securities are going to proliferate. is there anything wrong with trying to make a profit? certainly not. but i want to make sure that residents are being treated fairly. that the impact on my community is not negative.
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>> how powerful are these new institutional investors, companies like blackstone? >> one of the big problems we have with the functionality of our government is that the ordinary person doesn't believe they have as much say as these big financial interests. and they're right. >> we have voted numerous times to weaken financial regulations, the dodd-frank bill, the federal consumer protection bureau has been the subject of many pieces of legislation this past year. i'm not able to get one single hearing on this issue. >> if you've got lobbying powers who lobby 24 hours a day 7 days a week 365 days a year on behalf of banks on behalf of issuers and no one protecting investors
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or the consumer, you got a problem. >> the lack of change will allow them to do it all over again when people's memories fade and the dust settles. there's more to finical news than the ups and downs of the dow. for instance, could striking workers in greece delay your retirement? i'm here to make the connections to your money real. real reporting that brings you the world. >> this is a pretty dangerous trip. >> security in beirut is tight. >> more reporters. >> they don't have the resources to take the fight to al shabaab. >> more bureaus, more stories. >> this is where the typhoon came ashore. giving you a real global perspective like no other can.
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>> al jazeera, nairobi. >> on the turkey-syria border. >> venezuela. >> beijing. >> kabul. >> hong kong. >> ukraine. >> the artic. real reporting from around the world. this is what we do. al jazeera america. >> an intense manhunt underway for two suspects in the attack on the deadly satirical newspaper in paris. that a third suspect has surrendered and several more detained as the nation stops to mourn those lost in this tragedy. >> an outpouring of support from around the world vigil and rallies feature signs saying i am charlie banding together in the name of freedom of the press. >>