Mind Still Reeling; Just saved 16mo old boy from being on the 11pm news

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This just happened 20 mins from the time I am writing this post. Me and my mother left my sisters apartment on the way to drop me and my children off, then her to go home. We turn out of the parking lot and pull down to the traffic light not ten yards from the complex. All of a sudden across the street from the back of the corner house, a little boy, couldn't have been older than 16mos old, walked out of the yard and onto the sidewalk. We sat still at first, waiting for the "Big person" to come out behind him. But none came as this little boy crossed the street that we were on (luckily there was a red light, and that side of the street wasn't busy) and walked through the yard across the street. At first I was so stunned I didn't know what to do. I urged mama to pull up before he crossed the street, but we were at a red light that in the heat of the moment, I didn't notice. After he crossed the street I jumped out of the car and, since the cross street was busy and I couldn't cross, yelled to the neighbors that were on the porch nearby, "Who does this child belong to?!?" After a few descriptors, they figure out who the child belonged to. At the same time, we got the light and both my mother and I crossed the intersection. Some man stuck his head out the upstairs window and said to my mother the child was his. I scooped the child up and walked back to the house with him. Another little girl, couldn't have been more than four, came outside and grabbed what I assume was her little brother. The man came outside as well. I didn't know him at all, but I couldn't resist saying to him "You need to keep a closer eye on your son man!" I am still shocked and reeling over this incident. Had we not left when we did, he could have continued on into the busy street and gotten hit. The family that was sitting on the porch, at their vantage point, would not have seen him until it was too late. I HAVE to get your opinions and comments on this one MyLot. What would you have done in this situation. Would you have gone as far as to call the police? What do you think that family was doing in order for this boy to get out of the house and into the street? Why are parents getting so lax with their children these days?