Racism caused the housing crisis.

[Recliner Pilot 61]

I knew it wasn't Strike's fault.

 

.Racial predatory loans fueled U.S. housing crisis: study

.

 

By Nick Carey

 

CHICAGO (Reuters) - Predatory lending aimed at racially segregated minority neighborhoods led to mass foreclosures that fueled the U.S. housing crisis, according to a new study published in the American Sociological Review.

 

http://finance.yahoo.com/news/Racial-predatory-loans-fueled-rb-1069330785.html?x=0

[drobeski 3,061]

Thank pickle smooching barney

[RLLD 4,203]

The government compelled the banks to use the subprime vehicle to enhance minority access to home ownership, eventually that compulsion gave way to recklessness which ultimately led to the ponzi scheme the banks created.

[TimmySmith 2,782]

Sounds more like racism could have prevented the housing crisis.

[DankNuggs 305]

Funny because it was the federal govt and HUD that targetted giving loans to minorities despite having to reduce underwriting standards to do so...

 

 

Now it is racist predatory lending... What a crock of BS... Just another example of govt tinkering causing trouble in the free market system...

[DankNuggs 305]

The government compelled the banks to use the subprime vehicle to enhance minority access to home ownership, eventually that compulsion gave way to recklessness which ultimately led to the ponzi scheme the banks created.

The compulsion WAS the recklessness!!!!

 

 

Einhorn IS Finkel

 

Finkel IS Einhorn!

 

 

[GettnHuge 2]

but according to pelosi, reid, osama, frank, etc, this was all Bush's fault. They haven't been able to explain how it's his fault, but trust them, it is.

[MedStudent 56]

but according to pelosi, reid, osama, frank, etc, this was all Bush's fault. They haven't been able to explain how it's his fault, but trust them, it is.

 

http://www.youtube.com/watch?v=GkAtUq0OJ68&feature=related

[cbfalcon 825]

Sounds more like racism could have prevented the housing crisis.

 

underrated post.

[GettnHuge 2]

http://www.youtube.com/watch?v=GkAtUq0OJ68&feature=related

 

He's talking about what Fannie & Freddie were trying to do back when they were cooking the books and making everything look rosy.

I asked what Bush did.

[Recliner Pilot 61]

http://www.youtube.com/watch?v=GkAtUq0OJ68&feature=related

 

 

You liberal Demwits have cried wolf too many times with the "It's Bush's fault" mantra. Now you clowns are falling back on the racism card.

 

Try to keep up, Medstoopid.

[RLLD 4,203]

You can blame Regan a little, Clinton alot, Greenspan every day and twice on Sunday and Bush a little too.....plenty of blame to go around (but for gods sake don't you dare hold seller and buyers accountable!)

[Recliner Pilot 61]

You can blame Regan a little, Clinton alot, Greenspan every day and twice on Sunday and Bush a little too.....plenty of blame to go around (but for gods sake don't you dare hold seller and buyers accountable!)

 

 

Of course you can blame those guys, they're all white.

[DanXIII 8]

You can blame Regan a little, Clinton alot, Greenspan every day and twice on Sunday and Bush a little too.....plenty of blame to go around (but for gods sake don't you dare hold seller and buyers accountable!)

 

Gubmint programs to expand minority home ownership have been around for decades. Anyone who thinks this is what directly led to the subprime meltdown is probably retarded.

 

I agree with you about Greenspan. Interest rates were kept way too low in the aughts.

 

[peenie 1,915]

damnit, i missed out on some free money! i'm black, why didn't i get my free loans?!

[RLLD 4,203]

Gubmint programs to expand minority home ownership have been around for decades. Anyone who thinks this is what directly led to the subprime meltdown is probably retarded.

 

I agree with you about Greenspan. Interest rates were kept way too low in the aughts.

 

 

You need to go back and review the The Community Reinvestment Act of 1995, anyone who thinks government was not directly behind what eventually transpired is missing an important facet of this entire thing. But first read the Home Mortgage Disclosure Act (HMDA) of 1975 and then the Community Reinvestment Act (CRA) of 1977.

 

Government is solidly behind this, its rather silly to suggest otherwise.

[DanXIII 8]

You need to go back and review the The Community Reinvestment Act of 1995, anyone who thinks government was not directly behind what eventually transpired is missing an important facet of this entire thing. But first read the Home Mortgage Disclosure Act (HMDA) of 1975 and then the Community Reinvestment Act (CRA) of 1977.

 

Government is solidly behind this, its rather silly to suggest otherwise.

 

I don't think anyone is suggesting that government isn't behind the CRA. I think it's silly to suggest that we would not have seen this bubble much much sooner had the CRA been the sole culprit of said bubble.

 

You can have all the minority lending programs you want, if the level of capital in the market had not been where it was in the aughts, there likely never would have been a bubble. Speculation in the housing market also dramatically fueled the bubble and the eventual collapse as well...and speculators can hardly be classified as "minority first-time home buyers who don't know wtf they're doing."

 

I'm not saying these programs didn't contribute. I'm saying that they weren't the primary cause of the bubble and crash, and there is ample evidence to back that assessment up.

 

[RLLD 4,203]

I don't think anyone is suggesting that government isn't behind the CRA. I think it's silly to suggest that we would not have seen this bubble much much sooner had the CRA been the sole culprit of said bubble.

 

Oh, I didn't realize that anyone suggested that.

 

You can have all the minority lending programs you want, if the level of capital in the market had not been where it was in the aughts, there likely never would have been a bubble. Speculation in the housing market also dramatically fueled the bubble and the eventual collapse as well...and speculators can hardly be classified as "minority first-time home buyers who don't know wtf they're doing."

 

The access to financing opened up the prospect of home ownership to a wider range of people, which elevated demand, this then precipitated that elevated costs of housing. When this transpired speculation entered the arena and was like throwing gasoline on the flames, and the banks sought the implementation of toxic loans to keep the ball rolling. Eventually what arose was a Ponzi-style structure to the market.

 

I'm not saying these programs didn't contribute. I'm saying that they weren't the primary cause of the bubble and crash, and there is ample evidence to back that assessment up.

There is no single cause at play in this, did the creation of subprime expansion contribute....absolutely, but in and of itself it could not have created the Ponzi scheme nor done enough damage to bring our economy to the brink. What I find amusing is that this was originally hailed as great and an important step for minority home ownership, and now suddenly it was exploitative. If you are a loan officer your head has to be spinning at it all...

[PackYourNut 47]

Sounds more like racism could have prevented the housing crisis.

:lol:

 

So true!

[RLLD 4,203]

Sounds more like racism could have prevented the housing crisis.

 

Funny, but in a way very true.

 

The continued standard of making sure people could afford the home they wanted to buy was apparently "racist" and as such subprime was born and now its racist.

 

Anything that results in a negative outcome for a minority is racist, but if you don't try, you are still racist.....and since you can't win, there is really no point in trying....

[DanXIII 8]

What I find amusing is that this was originally hailed as great and an important step for minority home ownership, and now suddenly it was exploitative.

 

I agree, for the most part. However, I don't think the two concepts are necessarily mutually exclusive. For example, I consider home ownership (if it can be afforded by those purchasing homes) as a net benefit for the economy. I also think that it is entirely possible that the system can (and probably was) exploited by bad actors. Lending institutions who are also investment banks don't really care if a loan will be paid back...that mortgage is going to be packaged and sold to a hedge fund. In this way both situations could conceivably exist.

 

[RLLD 4,203]

I agree, for the most part. However, I don't think the two concepts are necessarily mutually exclusive. For example, I consider home ownership (if it can be afforded by those purchasing homes) as a net benefit for the economy. I also think that it is entirely possible that the system can (and probably was) exploited by bad actors. Lending institutions who are also investment banks don't really care if a loan will be paid back...that mortgage is going to be packaged and sold to a hedge fund. In this way both situations could conceivably exist.

 

 

Did 'bama really put 62 points on Duke?

[DanXIII 8]

Did 'bama really put 62 points on Duke?

 

Yeah but they gave up a TD

 

[RLLD 4,203]

Yeah but they gave up a TD

 

 

dayyyyaaaammmmm