The Lesson of the Mortgage Crisis
By • 2/7/08This article by Stan Liebowitz on the mortgage crisis that is wreaking such havoc on the stock market lays bare its real cause: decades of “anti-discrimination” activism that pressured banks to lower lending standards so that minorities could get more home loans.
In the 1980s, groups such as the activists at ACORN began pushing charges of “redlining” - claims that banks discriminated against minorities in mortgage lending. In 1989, sympathetic members of Congress got the Home Mortgage Disclosure Act amended to force banks to collect racial data on mortgage applicants; this allowed various studies to be ginned up that seemed to validate the original accusation.
In fact, minority mortgage applications were rejected more frequently than other applications - but the overwhelming reason wasn’t racial discrimination, but simply that minorities tend to have weaker finances.
The facts bear Liebowitz out: as I showed in The Improvident Races, blacks and Hispanics aren’t good at saving money.
Let us savor the following irony:
Ironically, an enthusiastic Fannie Mae Foundation report singled out one paragon of nondiscriminatory lending, which worked with community activists and followed “the most flexible underwriting criteria permitted.” That lender’s $1 billion commitment to low-income loans in 1992 had grown to $80 billion by 1999 and $600 billion by early 2003.
Who was that virtuous lender? Why—Countrywide, the nation’s largest mortgage lender, recently in the headlines as it hurtled toward bankruptcy.
So now are the minority groups sorry for having undermined the American financial system? Of course not. In fact, they’re on the offensive again. Now they are suing the banks for having issued minorities high-risk loans.
I guess you just can’t win if you’re a banker. But then, bankers are all rich white guys, so who cares?
Of course, in a sense, minorities won’t be responsible for the majority of mortgage defaults, as the large majority of all mortgages go to whites. But in another sense, minorities are responsible because they pushed for the lower lending standards that irresponsible whites took advantage of.
The whole mess augments a point that I’ve made before: integrating non-whites denatures white societies by corrupting their values. The problem isn’t just that the non-whites are a drag on our society; racial integration degrades the morals of whites as well. White societies became what they are because we held ourselves to strict standards, and those standards worked because whites were, by and large, up to them. But the standards don’t work for minorities, so they have to go out the window in the name of “inclusiveness” and non-discrimination. When the standards decay, the moral irresponsibility not only of minorities, but also of whites is given free rein to wreck our society. Whites act like black people more and more as time goes on, not only in their improvident finances, but also in their musical tastes, sexual behavior, and general reckless hedonism.
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I always believed everyone who qualified as “prime borrowers” paid an extra 0.5% or more to cover government coerced lending to monorities. It is a tax in everything but name. Other hidden “taxes” or income transfers include the “tax” whites and Asians pay, to live in a relatively safe area. Before the government decided freedom of association was not a right whites enjoyed, whites could live in relatively safe areas without paying exorbitant housing prices. Today, the only way for whites or Asians to be sure their family lives in a safe area and can attend safe, good schools is to pay an exorbitant price for a house few blacks can afford. Another hidden tax is the paying for the failure of blacks to achieve equality of results academically. This tax will never end because even mentioning the scientific fact blacks on average have much lower IQs and this is due to genetics is strictly prohibited and punishable as the recent case of James Watson illustrates. There are many more such as the “incompetence” tax of having millions of under or unqualified minorities having occupations due to direct or indirect government coercion.
By on 2/8/08 at 6:31 am
“Ironically, Target seems to be gearing up to make a lot of the same marketing mistakes by openly courting those of color in its advertising; the irony is doubled, when they seem to be getting ready to close the Target in my area that is most frequented by Hispanics and blacks (actually employing several security guards at the entrances) but have built 2 of them near within a 5 and 8 mile radius of it.”
John, you might remember a Target was built in Detroit on 8 Mile Rd. just east of Van Dyke where the Bel Air Drive Inn Theater was located. Well, it stayed in bussiness for about two years before it’s “customers” drove it out of bussiness. K Mart closed all of it’s stores in Detroit-proper at least 10 years ago. It couldn’t have anything to do with the fact that most of it’s “customers” were less than honest, could it?
By on 2/8/08 at 11:44 am
“Who was that virtuous lender? Why—Countrywide, the nation’s largest mortgage lender, recently in the headlines as it hurtled toward bankruptcy.”
A noteworthy bit of information: “Henry Cisneros former U.S. Secretary of Housing and Urban Development from 1993 to 1997. He left public office as a result of the Henry Cisneros payments controversy, after pleading guilty to making false statements to federal officials.” His stated goal while he was running HUD was - “The solution to urban blight is to relocate minorities —via various government schemes— into white areas where they can better assimilate into the mainstream.”
He was a board member at Countrywide.
http://seekingalpha.com/article/51289-countrywide-s-henry-cisneros-was-a-useless-board-member
By on 2/8/08 at 3:35 pm
Taryton writes:
“John, you might remember a Target was built in Detroit on 8 Mile Rd. just east of Van Dyke where the Bel Air Drive Inn Theater was located. Well, it stayed in bussiness for about two years before it’s ‘customers’ drove it out of bussiness. K Mart closed all of it’s stores in Detroit-proper at least 10 years ago. It couldn’t have anything to do with the fact that most of it’s “customers” were less than honest, could it?”
Taryton, interestingly I was unaware of the might then plight of that particular Target store. Just wondering, when was it built? I lived on that side of town up until 2002; then I was off on my adventure, that has seen me living in my new and surprisingly white city. When I lived in Macomb County, I was loath to ever drive on 8 mile, let alone go east of Van Dyke on that road; please remember, I am only 35 and going into Detroit proper lost all “appeal” by about the year 1997. I always took the 696 to 275 or Metro Parkway to Big Beaver to Quatron and then Telegraph to get to the Westside.
I was at a Cobo Auto Show, and almost got shot in 1997, in gang “crossfire;” I vowed never to return to the city after that and didn’t, following that incident. Since you seem to be from Metro Detroit, you know that 75, 96, and 94 are best avoided when they cut into “the city.” If something goes wrong, like a bridge collapsing, you see more of “the city” and its people then you would ever care to. That happened to me once in 2000, and I took Mt. Elliot to Mound off of 94 to get home on 19 Mile and Hayes; it was nightmarish, to say the least!
The K Mart closings, I do remember however. They were converting the abandoned stores into “churches” and other black “enterprises” from what I recall. I also remember that Farmer Jack’s got the same treatment, in their closed stores.
Funny, they never built airplane factories out of what was “left behind,” by whitey?
All the best Taryton,
John PM, formerly of “Detroit.”
By on 2/8/08 at 11:00 pm
“I was unaware of the might then plight of that particular Target store. Just wondering, when was it built?”
John, I believe it was built in the mid 1990’s and closed in 2003. Most of the businesses in the Bel-Air shopping center closed. They included Farmer Jack, Target, Builders Square, Toys R Us, Kids R Us, etc. The Bel-Air shopping center was supposed to be a “retail jewel,” but turned out to be a financial embarrassment (which, BTW, was underwritten by Detroit pension funds — a controversy in and of itself)
http://mapnp.geeks.org/pipermail/mpls/2003-May/024527.html
Around the year 1999 Kroger built a state-of-the-art grocery supermarket at the 7 mile/Gratiot area. It stayed in bussiness for around two years. It’s now owned by Arabs, as are > 95% of the grocery and convenient stores in Detroit-proper.
As for the mortgage defaults within the City of Detroit — of which are too numerous to comprehend — there is an added feature to the problem. As the number of mortgage defaults increased, there has been a concurrent rise in arson. I’m not accusing the fine upstanding homeowners in Detroit of committing arson/insurance fraud; but, the coincidence sure looks suspicious…NAH, how could I think of such a thing? No Detroiter would commit arson/insurance fraud to get out from under a mortgage default. Devil’s night in Detroit is just a myth created by racist Whites’ to make Black people look bad.
By on 2/9/08 at 10:42 am
To Taryton, regarding:
“No Detroiter would commit arson/insurance fraud to get out from under a mortgage default. Devil’s night in Detroit is just a myth created by racist Whites’ to make Black people look bad.”
Indeed, it was all a myth; the “racist” Detroit news media from network channels 2 through 7 (at the time) and the papers, the News and Free Press, all do conspire to “keep blacks down.” Comrade Young would always claim that, particularly when falsely accused of fathering illegitimate children and investing in Krugerrands, which we all know such an outstanding and honorable official would ever do.
I lived in Metro Detroit up to the year 2002; every time I go back, I am more amazed at what a filthy sewer it really is.
Just wondering, what do you think of this whole business with Comrade Kilpatrick?
I still listen to WJR from time to time, I get it where I live now, and it seems he might just go down?
He just hasn’t got the King Coleman touch—LOL!!!
By on 2/12/08 at 7:03 pm
“I lived in Metro Detroit up to the year 2002; every time I go back, I am more amazed at what a filthy sewer it really is.”
John, you’re quite right about Detroit-proper—the chocolate city—it’s a sewer. But as you already know from living at 19 mile and Hayes, the ‘vanilla suburbs’ are quite nice. Some are even the best places in the USA to live and raise a family. But 90% of the City of Detroit-proper is an untenable, black-underclass, crime ridden cesspool of human degradation.
“Just wondering, what do you think of this whole business with Comrade Kilpatrick?”
Well, it’s still unfolding. We’re waiting to see if the text messages between Kwame and Beatty are made public in their entirety. It’s been rumored they contain some pretty horrible things, including many racist diatribes by both Kwame and Beatty against whites. As you can imagine, the powerful bussiness people in the area, whom of which are investing their money in Detroit’s future, are working feverishly behind the scenes to sweep the whole embarrassing scandal under the rug.
http://www.mlive.com/newsflash/index.ssf?/base/news-50/120288084883620.xml&storylist=newsmichigan
By on 2/13/08 at 11:20 am
Ian Jobling notes:
“Who was that virtuous lender? Why—Countrywide, the nation’s largest mortgage lender, recently in the headlines as it hurtled toward bankruptcy.”
And so goes any business enterprise, that becomes too friendly with those of color and openly courts them. One good example from the retailing world is the once mighty K Mart, that has become near synonymous with a clientele of color and in the past openly catered to them and their “tastes.” Well, now in the area where I live the closest K Mart that is still in business is 25 miles away, and in a very small mostly white town.
Why might that be?
Well, the ones in the large metro area where I live, mostly were filthy retail paradises of Third World “consumerism,” where five fingered discounts were about as common, as payments with a five dollar bill. Whites shopped their rarely as Target had more appeal at the time, and so they were eventually shut down. Ironically, Target seems to be gearing up to make a lot of the same marketing mistakes by openly courting those of color in its advertising; the irony is doubled, when they seem to be getting ready to close the Target in my area that is most frequented by Hispanics and blacks (actually employing several security guards at the entrances) but have built 2 of them near within a 5 and 8 mile radius of it.
Of course, where did the two new ones get built?
In two of the most affluent white Suburbs that are right next to the main city, where the likely closing Target is located. I actually live within walking distance of the newest one (opened just in time for the Christmas onslaught, in late August) and also live almost behind it. That’s right, I actually could watch the wretched thing go up; thus, since it is the closer of the two to the probable coming closure, guess where most of the diversity wonders will show up?
Yep, right in my backyard!
You can just imagine my “joy” at that; the time to move, has clearly come me thinks!
On a lighter note, did anyone catch Chris Mathew’s Hardball tonight?
It was just revealed that the “Obama Girl,” who acted as an undulating harlot, in the YouTube video, “I’ve Got a Crush on Obama” didn’t bother to vote for the object of her “desire.” Laughably, the New York Times caught the vile white strumpet and discovered that she was too busy drinking in a New York bar, to get back to New Jersey (where she is registered) to vote in that primary.
The only thing that could possibly make that tidbit of absurdity better, would have been if the racially healing “savior” Comrade Obama had lost that primary by only one vote!
By John PM on 2/7/08 at 8:55 pm