#1 Bank implosions proof that Affirmative Action doesn't work09-18-2008, 03:32 PM
The banking failure we are seeing right now is actually a great example of Affirmative Action at work. Several years ago the banks teamed with inner-cities such as Cleveland and Detroit to create a way to "reach out to the community". In other words, to find ways to get people to move into the inner-cities and to give loans to people that could not otherwise get loans.
Every bank you could think of used this as a chance to look really "progressive" and "politically correct" and jumped at the chance. Lehman Brothers backed mortgage companies giving loans to minorities and others with horrible credit. NationalCity bank actually partnered with the city of Cleveland to essentially "guarantee" financing for someone willing to live within certain parts of the city.
In fact, the whole catalyst to "subprime loans" was actually an attempt by the banks to look hip and urban and progressive and reach out to the minority community that long complained about being ignored by banks.
And look where it got us.
When you have millions of people that previously could not buy a home suddenly in the home market, all home prices go up. Demand for homes skyrocketed. And just like a "rising tide lifts all boats", all home values surged as you suddenly had millions of new buyers in the market with no credit, no down payment, no steady income, and pre-approvals for $500k loans.
McMansion builders like Dominion Homes, MI, and dozens of others, advertised on Hip Hop radio stations non stop encouraging people to "buy a home for less than you pay in rent." That was a lie, of course, because it was only less for a year or so and then your mortgage payment shot up. But people wanted to believe they could be a homeowner, so they jumped in.
And just like in the dot com days, nobody wanted to be left out, so every investment bank and megabank jumped in and started backing these mortgage companies.
20 years ago the foreclosure rate among African Americans was higher than any other group. It still is, but now it is much, much higher than it was then. Much of the reason is because mortgage companies would help them get a loan, and even lie on the applications. They didnt care because it wasnt their money. They were underwritten by someone else. And the hedge funds and banks that were pumping money into mortgages because it was the "trendy thing to do".
And now, once again, all American taxpayers, and especially those in the upper-income brackets, get to pay to bail out the irresponsible home buyers and the idiotic banks. Both are equally at fault.**** Obama and **** you too.
EyelidsGuest09-18-2008, 03:36 PM
Of course, it all comes back to those fuckin' black people. Heaven forbid anybody in power is responsible for anything. Poor black people, the root of all our nation's problems.
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09-18-2008, 05:41 PMNothing helps a bad mood like spreading it around.
09-18-2008, 05:49 PM
My wife audits all the HMDA forms at the bank where she works. She says that if you turn down a loan to a minority, you damn well better have it documented for good reason. One of the main things they look at is how many minorities the bank turns down. It don't look good if the bank turns down alot of minorities. They focus more on hispanics than blacks. As a matter of fact one of the check boxes is Hispanic or non Hispanic.
I think what Owl is trying to say ain't that it's black people's fault. It's the fact that these loan companies have to meet there own "quota" of loans to minorities to keep the fed off their asses. So they have to give loans to people who ordinarily wouldn't qualify (at least here). That is where the problem lies.
EyelidsGuest09-18-2008, 05:50 PM
OwlMBA refuses to admit wealthy whites are at fault for anything.
09-18-2008, 05:55 PM
09-18-2008, 08:14 PM
I was pointing out the START of the problem. Then I mentioned how a "rising tide lifts all boats" and with the new spike in demand for houses, white people started selling for a profit. Then they started buying and reselling, and so on and so on.
All the morons that took out their 401ks to become real estate speculators are just as guilty. But that isn't want started all of this (nor is it what killed Freddy and Fannie).**** Obama and **** you too.
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