NYT Admits Cause of Mortgage Meltdown

Discussion in 'Economy' started by William Joyce, Dec 30, 2008.

  1. William Joyce
    Offline

    William Joyce Chemotherapy for PC

    Joined:
    Jan 23, 2004
    Messages:
    9,693
    Thanks Received:
    1,135
    Trophy Points:
    190
    Location:
    Caucasiastan
    Ratings:
    +1,349
    Affirmative action loans...

    Occidental Observer

    For weeks, writers like Steve Sailer and Ann Coulter have been pointing out that the economic crisis was likely caused, in large part, by the massive drive to give mortgage loans to blacks and Hispanics.

    The reaction was easy to predict: Loony right-wingers and racists want to "scapegoat" minorities for economic problems that are really the fault of greedy whites.

    But those critics are going to find it harder to dismiss the latest outlet for that observation: The New York Times. In a lengthy and wide-ranging Sunday piece, the paper puts the minority-loan angle up high, with a front-page photo and the caption, "In June 2002, President Bush spoke in Atlanta to unveil a plan to increase minority homeownership."
     
  2. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,771
    Thanks Received:
    11,058
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,106
    Most subprime loans were to middle-class whites. CRA loans accounted for 8% of total subprime loans that went bad. The neighborhoods that benefited the most were middle to upper class neighborhoods, which disproportionately are populated by white folks.
     
  3. William Joyce
    Offline

    William Joyce Chemotherapy for PC

    Joined:
    Jan 23, 2004
    Messages:
    9,693
    Thanks Received:
    1,135
    Trophy Points:
    190
    Location:
    Caucasiastan
    Ratings:
    +1,349
    And what was the default rate of the subprime loans to whites, compared to that of blacks and Hispanics?
     
  4. Zoomie1980
    Offline

    Zoomie1980 Senior Member

    Joined:
    Jan 16, 2008
    Messages:
    1,658
    Thanks Received:
    128
    Trophy Points:
    48
    Ratings:
    +128
    Sun Belt house flippers.....

    I'd love to see all those real-estate gurus now who ran those late night infomercials 5, 10-15 years ago, about getting rich quick by leveraging dozens of houses
     
    Last edited: Dec 30, 2008
  5. Zoomie1980
    Offline

    Zoomie1980 Senior Member

    Joined:
    Jan 16, 2008
    Messages:
    1,658
    Thanks Received:
    128
    Trophy Points:
    48
    Ratings:
    +128
    Higher, MUCH higher. Most were house flippers who defaulted on MULTIPLE loans when prices tanked. For every upper middle class white house flipper that defaulted, you could fit two or three dozen low income borrowers in the same dollar amount.
     
  6. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,771
    Thanks Received:
    11,058
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,106
    Yup.

    Also, most of the subprime defaults are occurring in nice, white, middle and upper class neighborhoods.
     
  7. BaronVonBigmeat
    Offline

    BaronVonBigmeat Senior Member

    Joined:
    Sep 20, 2005
    Messages:
    1,185
    Thanks Received:
    160
    Trophy Points:
    48
    Ratings:
    +160
    They intended to help minority first-time homeowners, but the law of unintended consequences kicked in, as it so often does with government meddling. Instead of helping minorities, the meddling bloated up the cost of housing and temporarily enriched real estate developers and upper middle class suburban white folks.

    I say "unintended" because that's the official line. I could speculate that helping big developers was the real priority, or that helping suburban whites (who get out and vote in larger numbers than minorities) was the real priority.
     

Share This Page