Skip to comments.Twas Quotas that Killed the Economy. [Obama and his buddies]
Posted on 09/18/2008 6:30:04 AM PDT by syriacus
An oversimplified timeline
The term "redlining" was coined in the late 1960s by community activists in Chicago. It describes the practice of marking a red line on a map to delineate the area where banks would not invest;
The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations
the Fed and other financial regulators have pressured/extorted banks into making more loans to less-than-creditworthy borrowers than they would normally be willing to risk...
When the CRA was created during the Carter administration, the administration also funded with tax dollars numerous "community groups" [like ACORN] that have helped the ... regulatory agencies to enforce the act.
Penny Pritzker, Obama's national finance chair was, with her family, the half owner of Superior Bank, which was shut down in 2001 by the FDIC after it had lost nearly all of its more than $2 billion of assets on bad loans to high-risk borrowers, federal regulators said.
Banking Industry Destroyed by Political Correctness.
Redlining had an underlying reason. It made little sense to invest in an area where, likely as not, the asset would be damaged or destroyed, confiscated as part of a criminal enterprise, or just plain lose value due to deterioration of the surroundings.
Funny thing, though. People who came here from other places (India, Viet Nam, Dominican Republic, Haiti, various African countries, eastern Europe) had saved and could pay cash for those dirt-cheap properties. They opened stores and other businesses, and in most cases the neighborhoods improved.
What prevented the American-born residents from doing the same? Nothing but their own behavior and attitudes.
Very nicely stated!! Short and sweet.
Al Sharpton illustrated how this works...
In 1995, a black Pentecostal Church, the United House of Prayer, which owned a retail property on 125th Street, asked Fred Harari, a Jewish tenant who operated Freddie's Fashion Mart, to evict his longtime subtenant, a black-owned record store called The Record Shack....
Sharpton told the protesters, "We will not stand by and allow them to move this brother so that some white interloper can expand his business."
On 1995-12-08, Roland J. Smith Jr., one of the protesters, entered Harari's store with a gun and flammable liquid, shot several customers and set the store on fire. The gunman fatally shot himself, and seven store employees died of smoke inhalation.
What complete and unsubstantiated crap.
We’ve been monicaed again.
I was always impressed by the way immigrants from the Dominican Republic arrived and built up little businesses in some of the crummiest parts of New York. In the Inwood area, they also took back the park because they simply wouldn't be driven out by the black thugs who had taken up residence there (and the Dominicans were usually armed with a knife, which they did not hesitate to use!). Success or failure has nothing to do with color, because many Dominicans are as black as any "African American." It's all a matter of attitude.
knee shoulder deep in the crap.
Uncovering the roots of the disastrous home mortgage bubble that popped last year will keep economic historians busy for decades. Yet, one factor has so far been largely overlooked: the bipartisan social engineering crusade to drive up the rate of homeownership by handing out more mortgages to minorities.
More than a negligible amount of the blame for the mortgage meltdown can be traced back to multiculturalism: government-mandated affirmative-action lending, demographic change, illegal immigration, and the mind-numbing effects of political correctness.
The chickens have finally come home to roost.
About half of all mortgages for blacks and Hispanics are subprime, versus roughly one-sixth for whites. Not surprisingly, the biggest home price collapses have occurred in heavily Hispanic cities such as Las Vegas, Miami, Phoenix, and Los Angeles. ...
Thanks for providing the link. I'm heading there now.
Why? Had the bank bothered to check the credit histories of some of the people who applied for loans they would have realized that merely having a pulse isn't sufficient qualifications for a mortgage.
The term "redlining" was coined in the late 1960s by community
activists organizers in Chicago.
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