NYT Admits Cause of Mortgage Meltdown

[William Joyce]

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."

 

[Toro]

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.

 

[William Joyce]

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.

And what was the default rate of the subprime loans to whites, compared to that of blacks and Hispanics?

 

[Zoomie1980]

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.

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

 

[Zoomie1980]

And what was the default rate of the subprime loans to whites, compared to that of blacks and Hispanics?

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.

 

[Toro]

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.

Yup.

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

 

[BaronVonBigmeat]

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.