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Following the money in a global recession
The report begins with a family struggling to keep up repayments on the mortgage for their home after the lender suddenly raised the repayment amount. An unemployed banker explains how he used to deal in bundles of these kinds of mortgages while working at collapsed bank Lehman Brothers. When thousands of people failed to repay their debts, these investments became worthless leading to a financial crisis in America. Due to the international nature of the financial system, banks all over the world found they were liable for the bad debts built up in the US. When recession hit the West, people in China suffered as demand for goods fell. In Britain, the recession even claimed Woolworths - a famous high street chain - which went out of business in 2008. This BBC News clip is published as part of BBC News Online and was first broadcast on 26 January 2009. Please note this clip is only available in Flash.
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