well, if the goal is ignoring and not talking about it is definitely not the goal.
In 1980 I would have been a suspect applicant for a mortgage. Today they offer me mortgages left and right. I can see the progress.
Capitalism has and will take care of this problem. A capitalist is only motivated to make more money and could care less about skin color. That is how Jackie Robinson got into the major leagues. Some white dude saw he was an asset. A lender wants to make loans. In fact the reason we had a Real Estate debacle in 2088 was because lenders gave too many large loans to unqualified minorities who then defaulted on the loans. The greed motivated the banks to be real sloppy with the qualification of the applicants.
I seriously doubt that story. Furthermore a Real Estate appraisal is sometimes moot. The price of a house is whatever the potential buyers are willing to pay for the home. It is easy to get down on these stories and overlook the positives. Honestly, I think it is propaganda, a Jussie Smollet type story to make a point.
That is an assumption by you.
I do not blame the unqualified minorities for the 2008 debacle. The problem was greed and the idea the banks could give loans left and right to all comers with no worries about loan defaults. The concept was that Real Estate would appreciate forever and repossessing a home back was a win win situation because they could resell it at a profit. Thanks for pointing that out. My main point was to point out that unqualified minorities got loans that ultimately were very damaging to them as they owned homes that were much less in value than the outstanding balance on the mortgage.
I agree! But, my point was that capitalism does not care about skin color as long as there is a profit to be made. Thanks for the clarification!Here’s a snippet of a conversation about the issue, please notice how all sorts of people were involved. It’s from Wharton. Emphasis mine.
The Real Causes — and Casualties — of the Housing Crisis
Misperceptions about the key drivers and impacts of the 2008 housing crisis persist — and clarifying those will ensure the same mistakes aren't repeated, Wharton experts say.knowledge.wharton.upenn.edu
“According to Wachter, a key misperception about the housing crisis is that subprime borrowers were responsible for causing it. Instead, investors who took advantage of low mortgage finance rates played a big role in fueling the housing bubble, she pointed out. “There’s a false narrative here, which is that most of these loans went to lower-income folks. That’s not true. The investor part of the story is underemphasized, but it’s real.”
It is no secret that homes in black neighborhoods are appraised for less money. However, I suspect the story that is running around in the media was fabricated.
www.reuters.com
Sub-prime loans were definitely a factor in the housing bubble in 2007, as was housing speculation. They were both significant contributors to the crash, but what really caused the markets to seize up was caused indirectly by those 2 factors. What happened was banks were leveraging assets in mortgage backed securities, many of which became worthless and caused a massive crunch when home prices started dropping and many people were upside down in their LTV. Meaning their home values dropped below what people owed on their mortgage.As for blaming “unqualified minorities” for the housing bubble in 2008, I would REALLY love to see your proof for that statement. Good grief.
Here’s a snippet of a conversation about the issue, please notice how all sorts of people were involved. It’s from Wharton. Emphasis mine.
The Real Causes — and Casualties — of the Housing Crisis
Misperceptions about the key drivers and impacts of the 2008 housing crisis persist — and clarifying those will ensure the same mistakes aren't repeated, Wharton experts say.
“According to Wachter, a key misperception about the housing crisis is that subprime borrowers were responsible for causing it. Instead, investors who took advantage of low mortgage finance rates played a big role in fueling the housing bubble, she pointed out. “There’s a false narrative here, which is that most of these loans went to lower-income folks. That’s not true. The investor part of the story is underemphasized, but it’s real.”
The evidence shows that it would be incorrect to describe the last crisis as a “low- and moderate-income event,” said Wachter. “This was an event for risk-takers across the board. Those who could and wanted to cash out later on – in 2006 and 2007 — [participated in it].” Those market conditions also attracted borrowers who got loans for their second and third homes. “These were not home-owners. These were investors.”
You have explained this better than I could, thanks.
There was a single cause. The greed of the people running the banks.I fully admit that the Real Estate debacle of 2008 was much more than giving mortgage loans to unqualified minority applicants. It would be foolish to assume there was just a single variable or cause. All these problems tend to be due to multiple factors. However, there were loans that should have never been approved.
Racial predatory loans fueled U.S. housing crisis: study
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.Subprime Crisis Lingers for Minorities
squaredawayblog.bc.edu
In any event the point I was trying to make is that capitalism does not care about skin color if there is a profit to be made. If there is money to be made they will lend the money.
Yes, and no. Greedy banks, yeah, for sure. But, a lot of people, including some banks lost everything because of that greed. One of the largest investment banks went under, and if not for the bailouts, whether you agree with them or not, literally pulled the entire financial system from the brink. I don't think many people realize we were literally days, maybe even hours away from a complete collapse of the financial system. It could have been a whole heck of a lot worse, and it would have been without the bailouts. In a way, I wanted to just let it happen, but, our country would have looked very different after 2008.There was a single cause. The greed of the people running the banks.
Credit default swap - Wikipedia
en.wikipedia.org
The banks and traders were going to profit whether the loans they made were paid off or not. Tricks like credit default swaps were 100% to blame for the 2008 financial crisis.
The top 1% screwed us and then we bailed them out.
If it helps you accept the truth, i am sure a handful of those bankers were non whites.
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