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The Real Culprits in This Meltdown

More news stories on Pandering Politicians

Investor’s Business Daily, September 15, 2008

But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions.

Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties.

Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the ‘90s by Clinton and his social engineers. They were the political catalyst behind this slow-motion financial train wreck.

{snip}

And the worst is far from over. By the time it is, we’ll all be paying for Clinton’s social experiment, one that Obama hopes to trump with a whole new round of meddling in the housing and jobs markets. In fact, the social experiment Obama has planned could dwarf both the Great Society and New Deal in size and scope.

There’s a political root cause to this mess that we ignore at our peril. If we blame the wrong culprits, we’ll learn the wrong lessons. And taxpayers will be on the hook for even larger bailouts down the road.

{snip}

Original article

(Posted on September 16, 2008)

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Comments

I definitely agree with the premise that racial pandering and affirmative action in mortgage lending was the spark that led to the meltdown. It’s not the whole explanation, though. Warning: My explanation here is kinda long and accountanty:

http://stlcofcc.wordpress.com/2008/08/12/a-matter-of-simple-algebra/

Posted by Question Diversity at 5:56 PM on September 16

A small price to pay for the dismantlement of the system that allows blacks to live in my neighborhood.

Posted by at 6:06 PM on September 16

I had heard allegations similar to this from another source, and it certainly sounds plausible. There used to be a cynical saying among average Americans (presumably many of whom had tried to borrow money from lending institutions and been turned down). It was: “Banks will only lend you money if you can prove you don’t need it.” Now we’re finding out WHY they used to have that policy.

This mandated safari into darkest sub-prime territory on the part of lenders is now going to cost us all a pretty penny. Thanks a lot, Mr. Clinton. This must be one big reason they referred to you as “America’s first black president.”

Posted by Wayne Engle at 6:23 PM on September 16

Too bad there isn’t a way to ensure that only leftists pay for this mess. Why should we race realists suffer from the consequences of policies we’ve been fighting against for years? The leftists wanted it. Let them pay for it.

Posted by jewamongyou at 6:27 PM on September 16

One good thing to come out of this is that some White neighborhoods are getting Whiter. I drive by a neighborhood that had eight black families living there. Five of those eight homes are now vacant with sale signs in the yards.

Posted by at 6:30 PM on September 16

“Infecting like a retrovirus…” Bravo! Looks like racial reality has hit the business pages. This is just what we need.

Posted by Phil at 6:40 PM on September 16

“Multiculturalism”, the false god that will continue to destroy this nation. Of course, no one will be held to account, let alone Clinton. Only the taxpayers will be held to account. Sick.

Posted by Bobby at 6:44 PM on September 16

- This is what’s driving me crazy! When this Marxist (which can be proven by reviewing his past) says it’s the fault of the free market system…He’s saying that the remedy would be the antithesis! What’s left I ask you? Socialism and/or Marxism. There is no such thing as, ‘Just a little bit pregnant’. Either your for the free market system or against it. Someone please tell me if I’m wrong! I’m no genius but I can’t understand why are people so blind to this. Are they unable to see this as it is? Are they so ignorant of the history of the differentiations of the various forms of government? Please Help!!! I need some kindred support here!

Posted by John Davies at 7:05 PM on September 16

I have to agree with this article. President Clinton did a lot to set this country up for failure. He did serious damage to the National Security and did force the lending instutions to make loans to people who didn`t have the ability to repay the.
However there are people who disagree. One website in particular,known a www.ScottCountyLiberals.Com. Check them ut and see the lies they are telling to try and get Obama elected.

Posted by at 7:10 PM on September 16

It is stupid to cloth, feed and house people who can not otherwise cloth, feed and house themselves.

And yet we keep importing MORE of these people who also happen to have a major grievance against whitey.

Hey, I guess the trade off of more “diversity” and “cultural enrichment” is worth it.

Maybe I just need sensitivity training.

Posted by RJS at 7:31 PM on September 16

I’ve been waiting for a major publication to pick up on this. It irks me every time I see the ACORN, the left-wing agitators’ group, blaming everybody but themselves for the mortgage melttown. It wasn’t too long ago when they were marching with the same vigor and abrasion against groups they perceived to be too restrictive with mortgage loans. It’s funny that I haven’t heard them use their formerly favorite incendiary phrase, “redlining,” for quite awhile, now.

Posted by Chris N. at 7:43 PM on September 16

Only make $26,000 a year driving a cab? Speak limited English?
Your cousin got you into the USA along ith your 12 other cousins? Have no job skills? No money in the bank?
WHY OF COURSE OWN A $600,000 HOME!! ITS YOUR RIGHT!!!

Just sign on the line
Mukbtar! Dont worry about defaulting on the loan, Whitey the Imperialist Aggressor will pick up the bill if you do.
In the meanwhile fill the place with cheap tacky furniture which you can get on loan too. And go ahead use the backyard to raise goats. But remember VOTE DEMOCRATIC.

Posted by at 7:55 PM on September 16

I remember reading about this Clinton scheme ten years ago, in National Review, I believe. The liberals were complaining that lending institutions were practicing racial discrimination, as if bankers were unwilling to make a buck of Blacks.
I propose that voting should be limited to people who have been able to read at an adult level for at least a dozen years. On your 18th birthday, you’d go down to the voting registrar’s office, and prove that you can read and understand an 800 word opinion column, by, say, Jared Taylor. On your 30th birthday, having lived a civilized life, free of drunk driving, sexual assault, or manslaughter, you could return to the registrar’s office and pick up your voter’s registration. Hopefully, this would reduce voter amnesia and keep liars like BHO from blaming today’s fools for yesterday’s treachery.

Posted by Schoolteacher at 7:56 PM on September 16

Clinton said he was the first black president. We should have believed him.

Posted by Flamethrower at 8:32 PM on September 16

George Bush could have gone down as the greatest President in our history had he only possessed a small amount of vision.

First, after 9-11, he had the political clout to secure the borders, “encourage” all illegals to leave the country, and then to, at least secretly, end Muslim immigration. He did none of these things.

Second, from his experience, he should have known that much of what Bill Clinton had been involved in could now be corupt. Any Clinton appointees or associates should have been under suspicion.

Bush should have had teams looking for such things as was happening with Fannie Mae and, after finding them, shutting them down. Bush did nothing.

We should expect narcissistic liberals like Clinton to do harm to us. Each time power shifts back in our direction it should not be squandered.

Bush’s administration is proving to be not just a wasted Presidency, but a disaster that is still unfolding for our country.

Posted by GWS at 8:59 PM on September 16

Okay, but I do recall Bush on both radio and television, egging on the subprime industry, claiming that it was “bringing the American Dream of home ownership to more people.”

None of the get a pass.

Posted by Whiteplight at 9:03 PM on September 16

Although it is difficult to imagine taxpayers being “on the hook more than they already are with the current federal deficit and nearly 60 trillion in entitlement obligations, it is certainly possible. This is yet one more reason for voting against Obama. I agree with the author, Obama is intent on making Johnson’s Great Society look like an insignificant proposal. If that should happen, the US financial house will very rapidly crumble, leaving us in the greatest depression in our nation’s history, one which will make the so-called “great depression” very mild by comparison.

I clearly recall the movement in the Clinton white house to push for more minority loans (something entirely consistent with his position as America’s “first black president”) as well as the similar Clinton agenda at the department of agriculture to push for massive financial damage awards to black “farmers” (farmers who lived in cities strange as it may appear, had no knowledge of or experience in anything even remotely resembling farming, and have never been discriminated against in any farming related venture as most never in their lives had anything to do with farms or farming, except perhaps buying vegetables at grocery stores)—the program is going on to this day with “discrimination” pay outs amounting to multi- million dollar payouts which come directly from the tax payers’ pockets..

As not even the Clinton administration, with all of its affirmative action and welfare programs, could possibly afford to give the average black an income and/or a sense of financial responsibility which would make him/her capable of sustaining a home mortgage, they did the next best thing, i.e. they forced the banks to dramatically lower their lending standards. This resulted in many more home sales to blacks and other minorities which fueled the housing market demand. This increased demand was then taken up by many middle and upper class American of all races who were encouraged to maximize their mortgages (on the false assumption that housing prices would go up forever—-nothing goes up forever) by paying nothing down and then taking out home equity loans to pay for everyday items like plasma TV’s, etc.

This did require a major chance in banking standards but once these were changed by the decree of the Clinton White House and congress for the benefit of blacks, the bankers’ greed got the better of them and they applied the same low standards to other mortgages as well. The result of this, the current sub-prime meltdown which we have today, did in fact originate with Clinton’s misguided intrusion of the federal government into the financial market place. So, anyone who blames the sub-prime debacle on the “free market” is fundamentally wrong. It was not the free market which initially lowered lending standards, it was the federal government that forced such policies on the banks.

If you think that the current sub-prime crises is bad, just wait until president Obama begins his program of social engineering. It will make Clinton and even Johnson look like classical Austrians.

Posted by at 9:10 PM on September 16

But Obeama he our MESS iah.We got follar him.Es we go to hell.

Posted by Billiam Mortain at 9:22 PM on September 16

The necons will ruin Palin and we might well be at war with Iran and the draft reinstated, with Iron Curtain falling once more as we force a new Cold War with Russia, China will benefit (take back Taiwan while our attention is diverted on so many fronts?), the rotten trade agreements will remain, the deficit will spiral along with inflation and unemployment, the economy will tank badly, the illegals will stay and reproduce millions of Americans-In-Name-Only AINO (though the border might be somewhat secured at some point), and states will push off fiscal responsibility as far into the future as they can sticking their heads in the sand like ostrages in Australia.

Pretty dire stuff I know. But that’s what is possibly coming when the Republicans win the white house this year.

Now the Democrats will lose this election but don’t get out the tissues to wipe away any tears because their war chest of change is really bad and includes concerted (legislative/executive/and judicial branches acting in unison) vicious attacks on the many amendment freedoms we hold dear in this country, police actions around the world (Africa and wherever else the self-described “citizen of the world” decides to send our troops), the rotten trade agreements will remain, the deficit will spiral along with inflation and unemployment, the economy will tank badly, the illegals will stay and reproduce millions of Americans-In-Name-Only AINO, and states will push off fiscal responsibility as far into the future as they can sticking their heads in the sand like ostrages in Australia.

Pretty dire stuff I know. But that’s what would come if the Democrats win the white house this year.

What we NEED are innovative, tough leaders in the legislative, executive, and judicial branchs acting in unison to fix this country’s economic interests first and foremost. Men and women that would end illegal immigration and resolve the badly damaged immigration system (reinstate conservative quotas, end chain migration, remove magnet of jobs and social benefits, etc..) but in a manner that doesn’t violate our liberty (like using newly constructed borders to scan for traffic warrants and whatnot on American citizens), pull us out of the rotten trade agreements and begin to create an environment where American businesses once again produce in America using American workers, ending costly wars of empire in far flung places, fixing our broken modern liberal brainwashing public education system that doesn’t yield desirable results anymore, encouraging a social paradigm that puts traditional values in a positive light once again, etc..

But that is NOT going to happen.

As the Chinese (who are going to sit back and clean up from our wayward madness) say: “So Sorry”.

Link.

Posted by Unemployed WASP at 9:24 PM on September 16

Actually these mortgage companies operated like mafia Loan Sharks.They woild loan money to just about anyone.The difference was the mafia could break peoples legs If you did not pay them back.

Posted by Tony Soprano. at 9:29 PM on September 16

I don’t think these people cared so much about multiculturalism, it was just about making money and they were willing to do anything to make it. These people were making N.I.N.J.A. loans (No Income, No Job, No Assets) and loans to illegal aliens, without social security numbers!

Posted by at 9:29 PM on September 16

If Bob Dole had become president Jack Kemp would have pursued the same path of forcing lending institutions to placate minorities(mostly blacks) by giving them home loans in an attempt to “grow” the Republican party.

Posted by COI at 9:35 PM on September 16

There are three main reasons for the current mortgage nightmare:

1. Affirmative action, as mentioned in the IBD article;

2. The availability of easy money, caused by the Federal Reserve; and

3. The greed of loan officers who want big promotions and Christmas bonuses.

Posted by Uniculturalist at 9:42 PM on September 16

You don’t give loans to people who have a proven track record of not paying bills.

Posted by Civilized Neighbor at 9:44 PM on September 16

It’s the same old quota mentality! If Blacks do not receive loans at the same rate as whites, that proves discrimination - that is the liberal line - on university admissions, on hiring, on promotions, on criminal convictions, and on home ownership. So loans must go to minorities, even if they are as unqualified as the affirmative action college student. They get the loan, but cannot keep up the payments. Who is to blame for people getting loans who do not deserve to get loans? Nixon, Carter, Reagan, Bush I, Clinton, and Bush II - they are to blame, as well as those who voted for them.————HM

Posted by at 9:45 PM on September 16

You know, it was a reasonable experiment. Lend these people money because people will move heaven and earth to make their mortgage payments. Well, it didn’t work out because they are amoral and don’t care about defaulting on a bank loan. Lesson learned. What is imparative, however, is that it be publicized that the people who didn’t make their payments and live up to their responsibilis are minorities. The government agencies are entitled to make a mistake, but conversely, the reason for the foreclosures shouldn’t be whitewashed.

Posted by at 10:04 PM on September 16

Jimmy Carter and Bill Clinton deserve most of the blame because of their evil Community Reinvestment Act which forced banks to make absurdly risky loans to shiftless blacks and hispanics w/awful credit.

However some blame must also go to Jorge W. Bush who declared in 2001 that he would use Big Brother to increase the number of black and brown homeowners.

Posted by Madison Grant at 10:11 PM on September 16

Owning a house is a privilege, not a right. I guess many non-whites would disagree with me.

Posted by at 10:24 PM on September 16

After all the trillions the Great Society thinkers spent to eradicate poverty with little result, the suggestion that Obama will top that program is scary indeed. Back then, we had the money to pay for a war and pay for a lot of welfare freeloaders. But now we have an expensive war and many more people in poverty. But we don’t have the money to pay for it. Instead we have a massive national debt so large, nobody in the 60s would have considered it imaginable. Something has to give here.

Posted by at 10:45 PM on September 16

“There’s a political root cause to this mess that we ignore at our peril. If we blame the wrong culprits, we’ll learn the wrong lessons. And taxpayers will be on the hook for even larger bailouts down the road.”

Indeed!

Can’t make them white, no matter how we try:

Not by “government” edicts;

Not by swirling kind thoughts;

Not by “bussing;”

Not by “affirmative action” in action;

And not, most certainly, by coating them with vanilla icing!

So why would or should, allowing them to purchase “homes” they can neither finance or appreciate, change anything either?

Well, another racial “transcendental” moment for the whole country has begun a unexpected metamorphosis, somehow?

What more to say here?

Oh, I know…………………God help us all!

*KRONOS*

Posted by John PM at 10:56 PM on September 16

By now it should be obvious even to the dullest among us that our own govt. is out to destroy us.

The govt. has robbed the middle class White taxpayer to the tune of $450 Billion over the last decade and funneled the money via its own quasi-private Fannie Mae and Freddie Mac entities, while strongarming private mortgage lenders into handing out home loans to unqualified Blacks and Latinos like there’s no tomorrow.

This resulted in millions of minorities moving into middle class White neighborhoods all across America and wrecking many of those neighborhoods.

This entire effort coincided with the demolishing of most of the old housing projects nationwide in the mid to late 90s. The millions of Blacks who once lived in ghettos now get to live in middle class White neighborhoods. They’ve been given what we’ve had to earn.

Now the Usual Suspects in the mass media blame the private mortgage lenders for giving out the loans when it was the Federal govt. that twisted the arms of these lenders and forced them to hand out loans to unqualified minorities in the first place.

And to top it all, our own tax money has funded this whole rotten scheme.

The enemy isn’t Democrats or Republicans; the enemy is the govt. itself.

Posted by at 11:00 PM on September 16

Once again in my area low lifes from Poland rehab houses using funny money and rent them to other third rate people creating a financial crisis for the community banks in Chicago. Leaving large loses for the banks when the rents trash the properties and the stupid Poles who rehabbed the building get foreclosed on. Then the Polish trash leaves are country and moves to the EU.

Posted by at 11:22 PM on September 16

The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but “predatory.”
—————
Typical of Democrats to create a problem, then point fingers at Republicans and exploit it for votes. This country is headed for a complete meltdown.

Posted by RHG at 11:28 PM on September 16

When I heard about 100% mortgages in the mid-1990’s, I asked my banker cousin how this could be. He rolled his eyes and muttered, “Government”.

There are now large areas between Joliet and Aurora, Illinois where block after block of houses are in foreclosure, not maintained, or outright abandoned because the “owners” had no business holding any kind of mortgage.

This region is now a vinyl ghetto where minorities have taken over. Instead of being the typical slum in an older part of an old city, this stretch of development has gone from farm fields to subdivisions to shambles in 10-12 years.

Posted by Annoyed In Illinois at 11:33 PM on September 16

I have to agree. I heard the same from real estate agents I know. They tell of illegal immigrants who buy homes. The agents know they are illegal, but it is the only way to fill the quotas. Beside the wall street journal says the illegals are good for the economy. One night the owners disappear. The morgage lender is stuck with a house they cannot sell, but have to pay taxes on. This has happened in every county. I wouldn’t care, but you know they will raise the taxes of white people to pay for this.

Posted by flyingtiger at 11:40 PM on September 16

Economic problems are what attract attention in the end.
Ideology, like Theology before it, takes time to form and always overstays it’s welcome.
People are too slow to respond to the problems that Ideas create. As long as they have the necessities and a few goodies, they go along. But when those things are threatened people start waking up.
Perhaps it would be better if it didn’t have to work that way, but it does, and here we are.

Obama’s answer is a non-solution. It’s the disease that got us here on Hyper Freak Out Mode.

His answer for this hangover is to blame the Bartender and demand more drinks. Problem is, the Bar’s closed, and it was his drinking Buddies who closed it.
But the Owners will let Obama in long enough to pay the tab his drinking Buddies left him. In terms of the Economy and the Middle East, if Obama replaces Bush it will be a case of - Different Puppet, Same Puppeteer.

Posted by Dedalus at 12:13 AM on September 17

The meaning of Clinton’s “It’s the economy, stupid” is: “It’s the handouts to those who can’t help themselves, stupid”.

Now, we are going to pay for his and his co-Liberals generosity.

Posted by A Reader at 1:48 AM on September 17

Look folks I’m a White nationalist lets get that straight, but blaming multiculturalism for this is moving in the wrong direction. That would be short sided finger pointing.

If we want to understand why this is happening we need to understand our banking system. To stop it we have to 1.End our privately owned central banking system and put the government back in control of the issuance of our currency. 2.No longer use fiat money system. 3. Most importantly (in this case) end fractional reserve lending.

Of course don’t forget to blame our neocon president Bush for the bail out.

This story really begins at the end of the “great depression”.

To GWS
Bush wants the NWO and is no different than Clinton or McCain in this respect.

Posted by Dave at 2:53 AM on September 17

I am certainly not a CPA , but I do remember the eighties . The controversy coming over the radio was endless . Harping on and on about how minorities were being denied loans or decent interest rates . Now it should be clear to everyone why .Simply put,they were a bad risk . Now they are trying to put us back on the same road to ruin by resurrecting the old charge that minority farmers have been denied loans or decent interest rates .The government has indeed caused this by delving into the private sector , but the pressing question is , how much more can the American taxpayer stand ? A two front war that could morph into a multi-front war , a burgeoning 50 year old welfare system , millions that conveniently disappear from the public school system every year and a real estate sector that appears to be melting down , while all the time our jobs are being farmed out over seas . And now we are supposed to bail out every Tom,Dick and Harry who signed on the dotted line and can’t pay . And GWS , I agree with you but who are we going to vote for ? The Democrats ?

Posted by at 2:56 AM on September 17

Here is a link to a FANTASTIC analysis with excellent sources that truely breaks down the root of this DIVERSITY RECESSION. And though Clinton’s hands are in it, Bush’s culpability is sickening. This is not a Democrat vs Republican blame game. It’s crypto marxist/neo-con elites vs you and me… the small guy, stooge, patsey.

Posted by expat at 4:28 AM on September 17

We will never see it in the media, but a lot of the blame should be directed at congress, especially the dems, mainly at the socialist hero Barney Frank.

Posted by abc at 5:17 AM on September 17

I agree with the premise of this article and believe that the “give a mortgage to anybody” phenomenon signficantly helped the decline, due to foreclosures and neglect, in my Georgia neighborhood over the last 15 years. A number of marginal buyers moved in during that time; most were minorities but not all. At best they don’t have the money to maintain the properties (woo hoo, we’re homeowners, never mind we can’t afford to fix the peeling paint or rotten siding); at worst, the property is vacant and abandoned because the mortgage payments couldn’t even be made. I used to dread seeing the “Special financing available” on the realtor signs because I knew what it meant.

Posted by DareDare at 8:22 AM on September 17

Just one more failed attempt at forced racial equality. I wonder how many liberals would now still insist that the racial disparity in lending that existed prior to this mortgage mess was created by unfair racial bias? It’s pathetic, but we actually need laws that prevent lending institutions from giving out loans to unqualified applicants. If a lending disparity exists who cares, if it is due to the poor behaviors of minorities let them suffer the consequences. Every time it seems someone points out a disparity between the races it is automatically assumed the culprit is racism by whites when the real culprit is less intelligent behaviors freely engaged in by the minorities. This is why affirmative action in all its forms has got to go.

Posted by Hartford, CT at 8:27 AM on September 17

Steve Sailer discussed this topic in “The Diversity Recession, or How Affirmative Action Helped Cause the Housing Crisis”.

Borrowing and spending too much are bigger problems among Blacks and Hispanics than whites, but I think whites could learn from Indian and Chinese Americans about saving and living within ones’s means.

Posted by Indian Guy at 8:40 AM on September 17

Yeah, Ok. But it’s bigger than that. For example, ever
hear of fractional reserve banking? Your local bank had the
right to loan out seven times the amount of money it had on
reserve. And the right to charge interest on this money which
they created out of thin air. Pretty good wages, huh? Don’t
you wish you could get away with it? And that’s just on the
local level. The Federal Reserve does the same thing. In
ancient Chinese political philosophy it is said that whatever
the great do will be emulated by the ordinary-so it’s their
duty to set a good example. So of course people went crazy
with their credit cards-all the way from their local bank on
up people were doing the same thing. No one has ever audited
the Federal Reserve. And it is not a Federal Institution. It
is privately owned, largely by foreigners. Ron Paul has tried
repeatedly to get an audit but gets no support.
You can only blow up a balloon so far until it pops.
Likewise, you can only inflate a currency so far as well. Some-
one or someones have alot of explaining to do-in court. Lots
of people knew this was coming. Austrailia disassociated itself
from our system to the extent possible, months ago. The John
Birchers predicted this decades ago. And Father Coughlin and
Senator Lindberg predicted this decades before that. It’s time
to reopen the right wing conspiracy books. Our Sovereignty was
compromised in 1913 with the innauguration of the Federal Reserve
System.

Posted by Freyr at 9:19 AM on September 17

Read this today… we should remember much of the “former Soviet Union” and the “former Red China” are not at all going to sit tight while we work at being post-racial, tolerant towards everyone and willing to go anywhere and do anything we can, at any cost, to advance democracy…
“We must finalise and adopt a federal law on the southern border of Russia’s Arctic zone,” Mr Medvedev told a meeting of the Security Council, in remarks carried by Interfax news agency.

“This is our responsibility, and simply our direct duty, to our descendents,” he said. “We must surely, and for the long-term future, secure Russia’s interests in the Arctic.”

This is how mature and developed nations talk. This is what is called leadership. This is what we don’t have in our country and haven’t had, for many many years. We have suffered from multi-cultural deludoids for so long it is becoming hard to even imagine an administration that is seriously seeking to advance the interests of the majority over the long-term.

Posted by mark at 11:31 AM on September 17

From 200 to 2003 my wife worked in a mortgage company here in South Florida. She learned the entire business there and thus was familiar with all of it from the bottom to the top.

She used to come home tellng me about the loan applications she reviewed. How 3 or 4 unrelated people all signed for a loan on a house. Some of them actually being honest and saying they were making about $9/hour at a restaurant, etc, yet they “pooled” their money and “credit” to buy a house. She used to comment that as soon as they all had a big fight, who was going to pay the mortgage on this house? Ha. It has come to pass.

She would also tell me of the huge number of “mexican” sounding names on these loan applications. She was instructed to process them and in her entire 3 years there NEVER saw one declined. Never.

These loans were passed up the system and bought by faceless corporations. Nobody seems to care. Nobody asked. They were sold to “somebody” and that was the end of it. She would just pick up the next folder and check things like correct address, phone numbers, etc. She was never asked to verify anything on it, just things like if there was water available, on septic or sewer, had an up-to-date survey,etc. Nobody cared about the loan itself. Her company got fees and commissions for processing and selling these loans. They didn’t keep them nor finance them. They didn’t care about anything except how many loans they could process per day. She was fast, real fast.

In 2005 I sold two lots I owned and refinanced our home. I felt it could not last. Yep, I “sold” out early but I made a profit (used all the money to pre-pay my kids college tuition through the Florida College tuition plan). Thus, in a way, Lehman Brothers paid for my kids college. HA HA HA.

Posted by at 11:33 AM on September 17

My husband and I bought our home with one of those risky sub prime mortgages 3 years ago. We had 2 other deals fall through due to things beyond our control. I was actually told by our mortgage broker that if we had been “minorities” we would have gotten the first house that we tried to get. My husband had sterling credit until he had a business failure in the late 1990’s and I went through a divorce around the same time. We worked our butts off to pay for the house and put my husband through truck driving school so that I would be able to be home with our daughter. We refinanced our house just in time to avoid adjustible rates and now have a regular mortgage. However we now have a house in a rapily “browning” neighborhood and cannot sell for anything. We should have sold around the time our daughter was born so that we could have bought the rural property that we want.

Posted by Spartan24 at 12:24 PM on September 17

If the 1965 immigration reformm act had not been passed there wouldn’t have been a market for these bad subprime mortgages. And as a consequence, there would be no subprime mortgage crisis. This would have have decreased significantly the probability of a meltdown of the US economy. If and when the meltdown of the US economy does occur, I’ll make this prediction:Thousands of Native Born White families who will not hve enough money to buy enough food. Food pantries across the US are already in big trouble. As a consequence, Native Born White American Families will experience starvation. You don’t believe it will happen,consider this. The destruction of the state of Ohio’s economy via the outsourcing of manufacturing-this is the other route to foriegn scab labor-has caused a significant drop in the wealth of blue collar Native Born White American families in Ohio. Not only that, the meltdown of Ohio’s economy has resultrd to a significant reduction in contributions to foodbanks in the state. In a report in the national news four years ago-Lou Dobbs show- one Native Born White family was having so much difficulty affording food, that the teenage girls in the family were atttending high school malnourished.One of the girls said she spent the whole day in school thinking about food.

Nobel prize wining economist Amtyra Sen has demonstrated conclusively that the number one reason for starvation is a low income. He recieved the Nobel prize in economics for statitical demonstrating this.

If you pay attetnion to the news today, the economic justication of post-1965 LEGAL immigration is starting to drop off the radar screen. The emerging justification for the continuation of post-1965 LEGAL immigration is that it will reduce Native Born White Americans to racial minority. I saw another example of this last night on CNNs Jack Cafferty’s report on the Wolf Blizter show.

These are the “blessings” of post-1965 diversity. You have been warned.

Posted by Jupiter at 1:31 PM on September 17

“…put the government back in control of the issuance of our currency…”

Right, as the constitution plainly states, “to coin currency”

Or did it say “print coins”?

Money is not of the state, except under statism. We need, that is to say I want, competing moneys. Pick the one you like the most.
Let the state do what it wants, SO LONG AS NO ONE IS FORCED TO USE THE STATE MONEY. If the state’s money is so hot, then the folks could eschew (reject) the inferior private moneys…and vice-versa…

Posted by Madame Smythe at 2:13 PM on September 17

I don’t know how much of this mortgage crisis is actually due to lowered lending standards to minorities. Even though plenty of low income borrowers were being approved for loans for which they really didn’t qualify, I suspect that the overall sub-prime mortgage obligations are still a relatively small dollar percentage of the total outstanding mortgages in this country. I wouldn’t be surprised if the largest single component of defaults in aggregate dollar terms is in second homes, resort properties, or purely speculative real estate investments that have gone south due to the sudden stop and then abrupt reversal of real estate appreciation.

In short, minorities weren’t the only ones getting shaky loans, the rationale for which was that the property could only appreciate, and that any zero-equity or even negative equity position would quickly be remedied by explosive appreciation.

I’m sixty-five, old enough to have lived through perhaps four of these real estate cycles before. I’ve never see anything to equal the sheer insanity of this one, in which there seemed to be a collective mantra shouting, “You can’t lose!”

I suppose if one could identify one central feature of this boom that differed from all that came before it was the absurdly low interest rates (at least compared with the averages of the past thirty years) that were essential to the rapid inflation in real estate values. And if one could identify one person responsible for this policy it would be Alan Greenspan, who probably would do well to remain as invisible as possible lest a lynch mob fall upon him.

The past seven or eight years have seen a period of economic growth fueled not so much by actual wealth-creation, ie people adding value by making things and selling them at a profit, but rather by the illusion of wealth borne of real estate appreciation. People have been using their homes as ATM machines, sometimes as a primary source of income. The only real value added during the real estate frenzy has been in home construction as the nation frenziedly shipped many other jobs off-shore.

This illusion of sudden wealth is obviously not sustainable, which I’ve been saying for years, and been generally dismissed as a doddering old ninny for it, and that when the correction came it was going to be terrible. I fear (and certainly hope not) that the current turmoil may be just the tip of the iceberg poking up.

Posted by john at 2:18 PM on September 17

One down-side to the forclosures of sub-prime mortgages held by black homeowners is the buyers of many of these homes rent them out. In order to ensure occupation of the units, they often go to HUD, which guarantees a tennant, but tells owners they have to rent to absolutely anyone. Having black homeowners leave one’s neighborhood only to have them replaced by black Section-8 housing voucher clients seems to be a very poor tradeoff.

My own homeowner’s association addressed this issue by passing a regulation prohibiting any individual or corporation from renting out more than two units in our neighborhood. In Colorado, HOA regulations have the same force as state law.

I still would dearly love to know what happened to the concept of reading a contract before signing it. When I bought my townhouse, I wouldn’t have touched an ARM with a ten-foot pole. I deliberately picked a nice place in a neighborhood with fairly mature trees which I could still easily afford. This was 1996 as well, and I wasn’t buying property in an already inflated market. Paid off the mortgage in eight years. No problems; still living there.

Posted by Michael C. Scott at 2:53 PM on September 17

I recall, about a year ago, Rush Limbaugh explaining all of this “anti-redlining” coercion of the banks by the arm-twisting diversity-mongers. He was pointing out the underlying reasons for the mortgage crisis, and even though articles like this help more people to understand it all, the news barely gets trumpeted in the MSM—instead we are treated to daily barrages of derision and disdain for capitalism, etc.

At the time I heard Rush explaining it, I had just completed a real estate licensing course because I was between jobs and contemplating selling real estate. Having just been so sternly warned by the instructor all throughout the two week course that agents are absolutely forbidden to show properties to clients, even if specifically asked, in neighborhoods that have any particular ethnic/racial make-up(agents are admonished to simply reply “I can show you property in any neighborhood you like” lest they be charged, fined, de-licensed, and/or jailed for “steering”), along with exhaustive lectures on the various Fair Housing Act gestapo’s measures against “redlining” and so on, I realized that becoming a real estate agent—besides being probably not a good decision based on the market, obviously—would also be likely to drive me utterly insane as I would be forced to even further participate in the affirmative action/multiculturalism dystopia than I already am by working a regular job with a company that contracts with the federal government here in the D.C. area.

Perhaps if the real story gets around, we’ll see less and less of anti-white bureaucratic nightmares and boondoggles over time…

Posted by VigilantAmerican at 3:16 PM on September 17

Either your for the free market system or against it. Someone please tell me if I’m wrong! I’m no genius but I can’t understand why are people so blind to this. Are they unable to see this as it is? Are they so ignorant of the history of the differentiations of the various forms of government? Please Help!!! I need some kindred support here!

Posted by John Davies at 7:05 PM on September 16

China is still a communist country that is using capitalism to beat capitalist countries at their own game. The beauty of it is that China cannot afford to let the U.S. fall. However, what is it about China’s recent history (20th century) that would make anyone think that they will have more wisdom and less greed than the West?

Giving restive poor (minority or not) populations some benefits from the wealth most of them help generate has been a historic neccessity. When that has not been done, bloody revolution has been the result.

Those who think they would live long in a world - growing closer together no matter what neighborhood you barricade yourself in - with teeming poor, standing outside the gate, the border, the neighborhood, is fooling himself.

But I am confident that nature is going to step in soon with a pandemic that will make the 1918 flue epidemic look like a garden party. Many will die, and like the Black Plaque of the 14th-16th centuries in Europe, mostly the poor will die. But no one will be guaranteed immunity.

I am not looking forward to any of this.

Posted by Whiteplight at 3:25 PM on September 17

I recall many Republican, Christian real estate agents making shoddy deals with glee, raking in the commissions. See, God wanted them to prosper.

Posted by Whiteplight at 3:27 PM on September 17

If you won’t lend money to non-whites you are a racist who discriminates. If you lend money to non-whites who are bad risks and they default you are a racist for preying on non-whites. It’s yet another example of anti-white racism.

Posted by Fight the Racists at 3:50 PM on September 17

Government terrorism invoked by Clinton to require loans to people who can’t pay them is only ONE hair brained social goof that has the potential to bring this country down to third world levels.

Just as serious is Clinton’s appointment of leftist racial radicals, like Togo West, Dept. of the Army, and radical feminists, and many others, including high level officers like Wesley Clark, who went on a binge changing military policy to push blacks into high tech positions and command positions, although they were seriously lacking in qualifications. Unqualified women were benefits of the insane policy also. Remember the female general involved in the torture scandals?

The military situation could well mean a major military defeat for US forces in the near future and such an event would not only wreck the military it would also bring down the economy and degrade this country to third world status. We would be something like Pakistan, a third world military with nuclear arms, making us more a threat than a citadel of security, but we would have less civil order and would become, socially, about the same as Brazil, where the wealthy live in gated communities patrolled by armed guards with the rabble ruling the streets after dark.

The military scenario, plus the sub-prime fiasco are just two considerations the experts evaluate when they determine that this country will eventually erupt into civil upheaval.

If this country had remained homogeneous and had not been overcome by leftist ideology we very likely could have remained a world power for a thousand years. But, as it is, I’m sorry to say, the time is getting close to the point where America will be no more in its present form and will break up into several nation-states, leaving the multicultural hordes to pick and clean its bones.

Posted by Ranger at 4:45 PM on September 17

- “This is what’s driving me crazy! When this Marxist (which can be proven by reviewing his past) says it’s the fault of the free market system…He’s saying that the remedy would be the antithesis! What’s left I ask you? Socialism and/or Marxism. There is no such thing as, ‘Just a little bit pregnant’. Either your for the free market system or against it. Someone please tell me if I’m wrong! I’m no genius but I can’t understand why are people so blind to this. Are they unable to see this as it is? Are they so ignorant of the history of the differentiations of the various forms of government? Please Help!!! I need some kindred support here!”

Posted by John Davies at 7:05 PM on September 16

Excellent points Mr. Davies. Support? I suggest the book Philosophy: Who Needs It by the late Ayn Rand. Let us start with an article entitled Censorship: Local and Express (1973). The article opens:

“I have been saying, for many years, that statism is winning by default- by the intellectual default of capitalism’s alleged defenders; that freedom and capitalism have never had a firm, philosophical base; that today’s conservatives share all the fundamental premises of today’s liberals and thus have paved, and are still paving, the road to statism. I have also said repeatedly that the battle for freedom is primarily philosophical and cannot be won by any lesser means- because philosophy rules human existence, including politics.”

A majot shared premise is that wealth belongs to “society.” Remember my post about three weeks ago, regarding the “wealth warehouse” that was hogged by the White colonists, who withheld the wealth from others? Catholic social teaching claims “the world’s wealth was put here by God for use of all.” Alleged advocates of the “market” claim it is “the most efficient method of ALLOCATING SOCIETY’S SCARCE RESOURCES.” That means- the market is more efficient than outright use of ration coupons! These “market advocates” don’t believe in private property any more than Karl Marx!

Say some kids decide to open a kool-aid stand. After whipping up a batch of kool-aid, said beverage IS NOW A SOCIAL OR STATE ASSET. The kids can “allocate” it by selling, but what they are selling is not their property!! Do you see where this goes? If all private wealth is really social, shouldn’t it be regulated by its owner (society), using the state as its agent?

The view that wealth is “just there”, or is magically placed somewhere, must be rejected. The correct view is that wealth comes from genius and sweat.

Let us look at the last paragraph from the above IBD article:

“While government arguably has a role in helping low-income folks buy a home, Clinton went overboard by strong-arming lenders with tougher and tougher regulations, which only led to lenders taking on hundreds of billions in subprime bilge.”

So- they don’t deny that the government has a role in these great society type programs- the state simply can’t do too much. In fact, none of these programs has been contained, nor can they be. Tacitly, IBD is claiming that irrationality is OK, as long it’s done in moderation.

So, Mr. John Davies, I hope that helps. The anti-ideology of both left and right for the last fifty years is another matter (see Russell Kirk, and liberal Daniel Bell, who wrote The End of Ideology in 1960)

If wealth belongs to “society”, then all incomes must be equal.
How will the market system work if all incomes are equal?

I also recommend a book, The Law, by Frederic Bastiat, available online: http://www.constitution.org/law/bastiat.htm

Yes, Marxists actually claim this mixed economy is a form of laissez-faire. As George Soros put it “we have too much laissez-faire.”
http://mises.org/story/1651

Posted by Madame Smythe at 5:49 PM on September 17

Lending institutions are like any other business-the lower the percent of profit (lower interest rates in their case) the more volume they need to sell in order to make money.

Mr. Davies:
You are right. The problem is that people want help in their own situations without regard to idealology. So, they will go against their own stated free market principles.

Posted by middle-aged magnolia at 5:54 PM on September 17

President Kennedy wanted to get the U.S. off the Federal Reserve system. Some believe that is why he was killed.

Posted by at 6:11 PM on September 17

keep voting democrat…

Posted by danjack at 12:24 AM on September 18

“From 200 to 2003 my wife worked in a mortgage company here in South Florida. She learned the entire business there and thus was familiar with all of it from the bottom to the top.

Why the American citizen of course. In fact, those politicans you voted into office are right now busy at work putting you on the hook for massive federal bailouts of private companies which you and your children will have to someday pay for (either in taxes or a devalued dollar but mostly like both). So buckle your seatbelts and enable your airbags because the politicans you voted into office are behind the wheel and it’s going to be a hard landing.

We are seeing job losses mount, unemployment rates rise, wages go flat, inflation soar (even for basics), fewer people with access to pensions or health insurance, household debt remain high, the housing crisis deepen, the financial crisis deepen, innovation stagnate (in this country), spiraling budget deficits at the local, state, and national levels, indebtedness to foreigners spiral upwards, etc…

The party’s almost over but the media is still doing the politically correct happy dance, everyone’s in denial, and the politicans are working as hard as they can to push off all the problems into the future no matter the cost.

Posted by Unemployed WASP at 1:32 AM on September 18

I actually interviewed for an Analyst job at Countrywide in 2004. The interviewer asked my why I wanted to work at Countrywide. I told her I could find action and excitement in either one of two places: The Mortgage Market or Iraq. We then proceeded to talk about subprime before it most folks even knew about it and all the dangers it would entail.

Of course the most startling thing is that we had this conversation in 2004. I think anyone with any sense understood that “something stinks in Denmark”.

I think anyone who knows anything about the US financial system knew this was going to happen. There was simply too much money moving into real estate, it was becoming to easy to make money.

What’s really fascinating is that this real estate bubble came on the heels of an internet bust.

No one forced these corporations to lend to minorities, they did so willingly because once most whites owned their own homes who are you really going to sell mortgages too?

They had to sell their product to someone? The game had to continue, at least as far as Wall Street was concerned.

Everyone wanted this game to continue but eventually things just got out of hand, it simply wasn’t possible to keep prices going up forever even if the liquidity was available.

I think most of you are lying if you tell me that what happened was so awful, that’s poppycock. During the boom everyone was happy that real estate prices were going through the roof, my friends told me I was crazy for not buying.

If anyone is at fault its the American people for buying into this pack of lies. I can just imagine their collective response ,”At the time everything seemed okay!”

When greed overrules prudence the consequences are bound to be tragic. If you want know who is to blame for this fiasco look in the mirror.

Posted by Yellow Man at 2:47 AM on September 18

“No one forced these corporations to lend to minorities, they did so willingly because once most whites owned their own homes who are you really going to sell mortgages too?”

You are kidding, aren’t you old guy? I mean asserting that the interaction of property transfers will not continue on with new homes and the millions of sales of existing homes that occur every year in this economy is pretty naive. The mortgage business is almost self-perpetuating without bringing in unqualified buyers which have brought this economy to the brink of collapse and may cause a severe depression before it’s all over with.

Clinton’s executive orders and his push for policies were the motivating force behind ignoring the financial status of home buyers, because his naive, immature view of the leftist multicultural utopia REQUIRED a rainbow of smiling faces standing in front of their homes all singing in perfect harmony.

Barney Frank’s push to qualify unqualified buyers was going on up to just recently when the practice was halted by the lenders themselves, when it became apparent to them the entire morgage industry was in danger of collapse due to non-payable mortgages.

Cuomo also caused considerable weakness in the HUD program, because of his leftist shenanigans.

Just as Clinton has caused the severe weakening of the military, through the appointment of unqualified blacks to officer positions via his black Secretary of the Army, Togo West, so to has brutal government pressure been responsible for sending the economy of this country into a nose dive.

Those of us who have analyzed the situation and have determined that the US is moving rapidly toward civil upheaval, breaking along lines of race and ethnicity, have always taken into consideration the failure of airhead leftist policies as catalysts in creating an economic situation that will stimulate non-white rioting and anti-white violence.

At least a half dozen experts have declared to those sounding the alarm of the dangers of the leftist agendas, urging some kind of physical action, that nothing needs to be done in order to bring things to a head, because the situation will continue to deteriorate on its own. And that is EXACTLY what is happening.

The unfolding crisis brought about by rabid, naive, unintelligent multiculturalists is no surprise to many of us, and amounts to nothing more than what has been predicted.

Things are progressing just as expected and were predicted numerous times. There’s going to be much more to come, the worst of which will probably be a major battlefield defeat against the US military due to diversity promotions in line with the same skewed thinking from the multicults that is destroying the financial basis of this country.

Posted by Robert Kelly at 12:48 PM on September 18

Yellow man :

If this was the case, why are so many Whites losing thier homes?

Just curious.

Posted by Alan at 2:30 PM on September 18

Obama in a statement yesterday blamed the shocking new round of subprime-related bankruptcies on the free-market system, and specifically the “trickle-down” economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend.
I doubt that this plastic messiah would know anything about economics given that all he ever was is a “community organizer” for his Marxist masters. And like any good Marxist does not adhere to a free market economy, again he puts his foot in his idiot mouth.
It was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk sub prime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions.
Bush just continued what comrade Clinton initiated and this would be the same policy of the plastic man’s theme.

This Obama needs to have his creators write more imaginative speeches for jibber jabber that come from his “community action” political mind.

Posted by Saggezza at 2:34 PM on September 18

Don’t forget this meddling by our federal government has completely destroyed what were once safe, white, middle class and clean neighborhoods.

Posted by UnPC at 5:57 PM on September 18

Someone dropped the ball on this economic issue and it’s not
fair to blame the President. He does or should have economic
adivsors keeping tabs. Micheal Moore has said that this President is not all there mentally and that Mr. Booosh has
handlers to tell him what to say. Well these same handlers
should have been keeping track of the failing economy. But the
public at large still forgets that there have been a multitude
of problems facing the presidency. Natural disasters, 911
the War in Iraq. Now it comes out that the real culprit of this
mess was “Slick Willie” as Mr. Clinton was so fondly called.

But will anybody point the middle finger at his presidency.
HELL NO….

Thanks

Posted by at 7:24 PM on September 18

To lay the blame totally on the blacks and hispanics is like blaming only the crack-addict and pretending the dealer is a good christian who just wants to spread democracy to the rest of the world because god told him to. Yeah, the blacks and hispanics were as dumb as the whites, who paid to attend all those get-rich-in-real-estate-with-no-money-down seminars, but if you don’t realize your government is conning you, you’re as dumb as they are and I wonder what the revolution was all about.
It started when Reagan, appointed Greenspan, the great de-regulator, head of the fed. Under his watch we experienced three major bubbles—S&Ls, high-tech and the biggest of all, the housing. Greenspan had the tools and pulpit to dampen each bubble but he didn’t. Why? He’s either stupid or corrupt-you decide. I’m just glad Bush called in all the people who created this meltdown to save the economy. Following your leaders to hell shows great loyalty.
Give me the Robber Barons of old over the today’s CEOs. The Robber Barons, at least originaly, built railroads. They created something. Today’s CEOs couldn’t build anything real, concrete—it’s just money chasing money and it’s thirty percnt of our economy.

Posted by Thomas Jefferson at 9:17 PM on September 18

“You are kidding, aren’t you old guy? I mean asserting that the interaction of property transfers will not continue on with new homes and the millions of sales of existing homes that occur every year in this economy is pretty naive. “

How old are you 18? Being in my 30’s I probably seem pretty old. Contre, you’re misreading my statement. Allow me to clarify, the mortgage lenders make money packaging and selling the loans and the brokers and loan officiers make money originating the loans.

As a broker if you could get someone a loan for $700,000 (even they made nothing there is an incentive to get that person into a loan, mainly a commision. That commision was often higher for certain loans types than others.

Of course you might argue that’s immoral and against the customer’s interest. But what if this guy could “flip” his house to another sucker for even more.

This is where the problems really started. People say that markets are only tempered by fear and greed, when the fear disappears guess what you have left.

These companies went after minorities because it was profitable, at least at the time. Subprime loans were the darling of wall street because they offered higher interest rates than prime loans. At some point was begging for this stuff and as far as the loan originators were concerned they were making money for themselves and as well as getting borrowers into homes and satisfying a demand on wall street.

The problem is that the standards became so laxed that you didn’t need an income to even qualify for a loan, I dated a girl who bought a house while she was unemployed. This really suggests a systematic crisis that goes beyond the usual issues of race here on Amren. You can read about the horror here:

www.gsereport.com
thehousingbubbleblog.com/index.html

Our financial system essential became a Ponzi Finance System as per the theories of Minsky:

http://en.wikipedia.org/wiki/Hyman_Minsky

Here’s a paper if you want to actually read his theory:

http://www.levy.org/pubs/wp74.pdf

“If this was the case, why are so many Whites losing thier homes?”

Its pretty simple Alan alot of white people did dumb things too. I spoke to a loan officier and he told me of a couple that was only making $4,000 a month that wanted to get into a $750,000 home. I mean we are talking about payments of over $4,500, not counting insurance or property tax. Of course being somewhat ethical he told me didn’t the loan, the real kicker here is that this was not a subprime or even an Alt-A loan, the loan would have been packaged as a prime loan.

I like what Amren’s Thomas Jefferson said ,
“The Robber Barons, at least originaly, built railroads. “

I have one more thing to add to his statement. At least the robber barrons actually had a stake in what they owned and didn’t sell offload their assets to other buyers/suckers after they finished building them. The robber barrons had every incentive to make sure they created viable and sustainable systems. The vandals of wall street simply sold the loans after they were created, you tell me how much incentive would the Wall Street crowd have for creating good loans, not much I imagine hence or current state of affairs.

Posted by Yellow Man at 1:33 AM on September 19

“Contre, you’re misreading my statement. Allow me to clarify, the mortgage lenders make money packaging and selling the loans and the brokers and loan officiers make money originating the loans.” Posted by Yellow Man at 1:33 AM on September 19

I’m not misreading anything, old guy. You asserted that nobody forced the corporations to lend to minorities and that they did so willingly. That’s false.

Considerable pressure was applied by the Clinton administratiuon and committee heads like Barney Frank to give non-whites homes, regardless of their ability to pay. That’s not my opinion. That’s recognizable fact by everbody in the business, plus the Washington bureaucrats. So when you wrote the following it was incorrect:

“No one forced these corporations to lend to minorities, they did so willingly because once most whites owned their own homes who are you really going to sell mortgages too?”

Too, you are saying that once most whites owned their own homes there won’t be a market to sell to. That too, is false.

I explained the following to you, but you apparently never understood it: “…… asserting that the interaction of property transfers will not continue on with new homes and the millions of sales of existing homes that occur every year in this economy is pretty naive. The mortgage business is almost self-perpetuating without bringing in unqualified buyers which have brought this economy to the brink of collapse and may cause a severe depression before it’s all over with.”

Of course, the mortgage companies were greedy and eventually picked up and ran with the idea of gouging home owners with ARM’s that brought them literally billions in profits. And, yes, these high interest loans were repackaged and sold to investors, but that doesn’t have anything to do with the fact that the mortgage companies were heavily pressured by the government, the Black Caucus, and other ethno-interest groups to relax requirements for loans to minorities, and it was this pressure that brought the process into play in the first place. The lenders didn’t just come up with the idea and then decide to offer high-risk mortgages to people who probably couldn’t pay for them. They’re greedy and corrupt, but they’re not stupid.

The bottom line is this: These hare-brained ideas to come up with a plan to include minorities into houses when it was apparent they couldn’t pay was a recipe for disaster, which we are seeing right now. I don’t blame the minorities for trying to get loans, and I don’t blame the Mortgage companies for the initiation of the program. It is the leftist ideologues who are at fault as usual, always trying to finagle something in order to satisfy their sick dreams of forcing a rainbow utoia into existence, instead of letting the natural process of things take its course.

It was the multicult airheads who CREATED the opportunity for scamming various ways which was jubilantly followed by the nost corrupt in the lending industry. If the multicults hadn’t pressed to invoke the program, there would be no bankruptcies and there would be no eminent danger of economic collapse by this country.

And as I said in my first post, there are many other multicult programs that are in existence which will help bring this country down also, the most serious being the possible collapse of the US military, due to multicult programs within all the branches of service.

None of these things would be possible if the multicults had never existed in the first place. They’re a far greater danger to the national security of this country than any outside power by a tremendous amount.

Posted by Robert Kelly at 9:02 AM on September 19

“No one forced these corporations to lend to minorities, they did so willingly…”

http://www.newswithviews.com/Devvy/kidd393.htm

(snip)
“The current mortgage crisis came about in large part because of Clinton-era government pressure on lenders to make risky loans in order to “make home ownership more affordable for lower-income Americans and those with a poor credit history,” the DC Examiner notes today. “Those steps encouraged riskier mortgage lending by minimizing the role of credit histories in lending decisions, loosening required debt-to-equity ratios to allow borrowers to make small or even no down payments at all, and encouraging lenders the use of floating or adjustable interest-rate mortgages, including those with low ‘teasers.’

“The liberal Village Voice previously chronicled how Clinton Administration housing secretary Andrew Cuomo helped spawn the mortgage crisis through his pressure on lenders to promote affordable housing and diversity. “Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country’s current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments.

“He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded ‘kickbacks’ to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why.” (See Wayne Barrett, “Andrew Cuomo and Fannie and Freddie: How the Youngest Housing and Urban Development Secretary in History Gave Birth to the Mortgage Crisis,” Village Voice, August 5, 2008).” [4]
(snip)

Posted by Robert Kelly at 4:31 PM on September 19

“Why are so many whites losing their homes?”

Because they overbought. A house you can keep with only two incomes in an already inflated market is not an investment. It is a hideous risk, because as soon as one of you is laid off from work, you lose the house. Buying a home is the most important financial decision you will ever make in your entire life. A decision like this doesn’t bear messing up.

Posted by Michael C. Scott at 6:41 PM on September 19

“Too, you are saying that once most whites owned their own homes there won’t be a market to sell to. That too, is false. “

I don’t think the market would have collapsed if they didn’t sell to subprime borrowers it was simply another market to be exploited.

In fact when lending standards deteriorated everyone in effect became subprime, because your actual ability to pay off the loans doesn’t matter anyone.

“So when you wrote the following it was incorrect:”

Actually that’s impossible because these corporations repackaged the debt and sold it. No one forced bond holders to buy mortgage debt. They did so willingly.

“it was this pressure that brought the process into play in the first place. “

You have it backwards. The willingness of corporations to lend money depends on the liquidty of the market. If the markets are illiquid even the best borrowers are going to have trouble, look at the current situation.

Affirmative action did not cause large amounts of liqudity to appear in the capital markets that was Alan Greenspan’s doing read Greenspans Bubble if you want to learn more about the liqudity mess:

However if you don’t have the inclination to read a book here is a simpler explantion:

http://www.voxeu.org/index.php?q=node/488

Note that even as far back as 2005 people knew that Greenspan’s policies weren’t going to end well:

http://www.nytimes.com/2005/08/29/opinion/29krugman.html

” It is the leftist ideologues who are at fault as usual, always trying to finagle something in order to satisfy their sick dreams of forcing a rainbow utoia into existence, instead of letting the natural process of things take its course.”

I don’t think these people were talking to Alan Greenspan. If you have evidence I would be very impressed cite one case where Al or Jesse even had a meeting with Greenspan about this topic.

I know quite a few left wing crazies and most of them don’t care about finance,securitzation, moral hazard or ARM’s.

Personally you’re just asserting something without any reasonable evidence. Look Barney Frank and the lefties are not in charge of Wall Street he didn’t go down to the ratings agencies and tell them you must rate these loans well.

Here’s a good article on the ratings agencies and how they failed. Notice there is no mention of Barnie Frank or Jesse Jackson or minorities.

(Note registration with the NY Times is free.)

If you had good evidence then I would be very interested in reviewing it but it appears that you don’t. At least provide a link.

Posted by Yellow Man at 7:58 PM on September 19

I actually read the article at Village Voice that was referenced in your article. Here is a link to a copy.

The article completely ignores the role of capital markets. What had happened during that time was that the US was running, and continues to run large trade deficits. China was feeding its dollars back to the US in the form of mortgages from Fannie and Freddie.

Bill Gross from Pimco(world’s largest bond fund management firm) has a great article on this.

The reason the Real Estate Bubble worked was that it was a great way foreign investors to recycle their dollar denominated assets back into the US. In a sense its almost like a self amplfying cycle.

Only the real estate market really had the size neccesary to recycle financial assets on that sort of level.

Again when any market has large amounts of liquidity coming in it will produce a bubble , i.e. the internet bubble.

http://en.wikipedia.org/wiki/Dot-com_bubble

Or conversely when you have large amounts of liquidity moving out it will also produce an economic collapse:

http://en.wikipedia.org/wiki/Asian_financial_crisis

Richard Duncan’s book the dollar crisis is a great primer on the Asian Collapse.

But more importantly he documents the role of money per see in causing economic collapses.

Also McTaggert’s Weight of the Yen is a great book that cover’s Japan’s collapse in particular:

What I’m trying to say is that multiculturalism didn’t cause most historical bubbles and there is evidence that other factors may have been more important, i.e. Federal Reserve Policy.

As I said before you need to take a basic economics class before you start screaming that multiculturalism caused the Housing Bubble, even a high school level one.

The world is a complicated place.

Posted by Yellow Man at 8:40 PM on September 19

Rothbard’s 1983 book, available with 2008 prefaces. All you need to know about fractional reserve banking, fraud, central banking, and how booms are caused:

http://mises.org/Books/mysteryofbanking.pdf

Posted by Madame Smythe at 11:01 PM on September 19

RK: “Too, you are saying that once most whites owned their own homes there won’t be a market to sell to. That too, is false. “

YM: “I don’t think the market would have collapsed if they didn’t sell to subprime borrowers it was simply another market to be exploited.”

RK: That’s not what you wrote. You wrote that there would be no lending market without sub-primes, because most whites owned their homes. Telling someone they should take a course in economics, then spout such economically invalid nonsense makes you look ridiculous indeed.

Here’s what you wrote, once again: “No one forced these corporations to lend to minorities, they did so willingly because once most whites owned their own homes who are you really going to sell mortgages too?” (sic)

RK: Don’t you understand that you’re implying that there was no market unless the lenders could open up the sub-prime market? You didn’t write that it (subprimes) was “another market to explore.” You said what you said and after that you tried to twist things around, charging that what you had to say wasn’t understood.

And so far as the sub-prime fiasco not being the result of pressure from influential factors like Clinton and other multicults and that somebody doesn’t mention that in his article, or Greenspan didn’t say so, I might suggest that you learn to read between the lines and try to understand what is really going on rather than attempt to blame the situation on everything but the real reason.

Too, many of the instances you made of other factors involved are ones that came into play AFTER the process was already initiated by the multicults. The multicults are bringing down the economy with their multicult nonsense, just as I explained, and nothing you have provided proves otherwise. In fact the entire US structure is in danger of collapse by various multicult programs, trying to get these people to fit in somewhere.

YM: “What I’m trying to say is that multiculturalism didn’t cause most historical bubbles and there is evidence that other factors may have been more important, i.e. Federal Reserve Policy.”

RK: You’re trying to say something else that’s for certain, but it doesn’t have anything to do with the basic crux of the matter. The point was never raised regarding multiculturalism and “most historical bubbles” you refer to above, and your rambling off-topic jump from point to point comes across as nothing more than nonsense. It’s not worth reading really. It’s a waste of time. Your original premise was incorrect and quite naive, and you have some idea that all you have to do is display some irrelevant details regarding the lending situation in totality to support points that were never raised, and the mere mention of it all is supposed to be overwhelming proof.

YM: “As I said before you need to take a basic economics class before you start screaming that multiculturalism caused the Housing Bubble, even a high school level one.”

RK: Why? You’re getting hysterical because your often incoherent off-topic examples are being refuted by me. It’s something you have to deal with and has nothing to do with my grounding in any base of knowledge.

YM: “The world is a complicated place.”

RK: Only if you are unable to grasp what’s going on.

Posted by Robert Kelly at 2:59 AM on September 20

I am not convinced there is a largely racial component here, although I would agree the aggressive marketing or mortgages to obviously unqualified minorities is a part of the problem. I ran a mortgage brokerage some years back, and in our office we were pretty good about telling people the max for which they qualified (a ridiculously high figure itself), but also suggesting a lower figure that might be better from a financial management standpoint. What do you suppose they did? In all of my years running that firm, I never…I mean NEVER…had one person opt for less house and more cash flow. This includes whites, blacks, hispanics, etc.

The source of the problem at the consumer level is not solely the multicultural aspect, but rather the pervavsive entitlement mentality that has overtake the minds of all of our citizenry. Too many people feel they “deserve” a beautiful home, car, big-screen TV, etc., witout regard to whether they can truly afford it in the hard money sense. It is tempting to blame the administrators of these loans by saying, “Well, what do you expect? They were giving me all the money I wanted at dirt cheap prices; of COURSE I’m going to take it.”

You still could have just said, “No,” just as you should say no to another nickel beer when you’ve already had enough to drink.

As an aside, I think it’s interesting that in the two most prominent asset classes we have within our financial system, equities and real estate, it has always remained against the rules to be more than 50% leveraged in your brokerage account, but yet it’s been perfectly fine for many years now to be 100% leveraged in real estate. Well, up to now.

Posted by Jeff at 1:09 PM on September 20

If it weren’t for the original pressure under threat of penalty to issue sub-prime loans there wouldn’t be a manipulation of the high-risk loans. The original demand for the sub-primes was the ENTIRE problem. Other problems that developed while the program was ongoing wouldn’t have emerged without a sub-prime program. It’s humorous that such a simple concept is so difficult for some people to understand.

If the Investor Business Daily was a right wing organ of propaganda, I could see where its investigative analysis might be questioned, but it’s a relatively unbiased journal that would have no customers if it slanted news to fit its views.

I had learned of the situation long before the above article came out, and it verifies what the experts have been saying all along. It’s common knowledge, except to radical leftist pundits who want to expunge any blame for their kooky, dangerous diversity programs from themselves. Many business experts were talking about the problem before it exploded, wondering what actions they could take to protect themselves. Then came the rains.

Here’s the excerpt from above that tells it just as it is:

“But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions.

“TOUGH NEW REGULATIONS FORCED LENDERS INTO HIGH-RISK AREAS WHERE THEY HAD NO CHOICE BUT TO LOWER LENDING STANDARDS TO MAKE THE LOANS SOUND BUSINESS PRACTICES HAD PREVIOUSLY GUARDED AGAINST MAKING. IT WAS EITHER THAT OR FACE STIFF GOVERNMENT PENALTIES.

“The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but “predatory.”

“Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. BUT THE SEED WAS PLANTED IN THE 90’S BY CLINTON AND HIS SOCIAL ENGINEERS. They were the political catalyst behind this slow-motion financial train wreck.”

Non-whites just love to pretend they’re not a problem for this country, and while they are not directly responsible as individuals for this mamouth catastrophe, they’re lying right now trying to shift the blame to a number of different sources who profited, but weren’t responsible for setting the fiasco into motion, because non-whites always distort a situation to show themselves as victims. That’s what is happening now. Just notice how they’re shrieking hysterically now trying to place the entire blame on greedy lenders from the very beginning.

The program was enacted and put in force for non-whites by the diversity pigs, and those in the sub-prime program’s failure to pay that caused this collapse and it could well cause this country to sink. (A few whites were involved, but they weren’t the intended recipients of the program.)

But, it ain’t over yet. Not by a long shot.

And we still have other diversity programs that will eventually come apart like a bursting ballon, just as this one did.

Posted by Robert Kelly at 4:30 PM on September 20

An depth article on the Community Redevelopment Act from 2000.

http://www.city-journal.org/html/10_1_the_trillion_dollar.html

Posted by Thomas Jefferson at 5:46 PM on September 20

“What I’m trying to say is that multiculturalism didn’t cause most historical bubbles and there is evidence that other factors may have been more important, i.e. Federal Reserve Policy.”
—- Yellow Man

No argument here!

No one here has remotely claimed that multiculturalism has caused “most historical bubbles.”

And no one is saying that there are no other factors involved in this last one, but in this case it has certainly had a very significant role.

You have distorted the issues.

Posted by ghw at 9:36 PM on September 20

See: “Guess Who is to Blame in the US Mortgage Meltdown.”

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=75717

Posted by at 9:51 PM on September 20

Yellow Man:

I agree with you when you say that financial markets are way too complicated, such that one thing cannot cause a meltdown. However, think of the markets as a house, the non-multiracialism problems in the market as gasoline lying around the floors, and the subprime racial pandering mania as a match.

Posted by Question Diversity at 10:50 AM on September 21

Ron Paul says this bailout won’t be the last. (But we already knew that.)

What caused the sub-prime fiasco was defaults from borrowers, 90% of whom were minorities. They got loans in the first place because the lenders would have been penalized by government if they did not relax their standards.

What made the situation worse, was greed by corporate greed mongers.

But without the original order to issue the loans to begin with, there would be no opportunities for greed.

It’s as simple as that. Multiculturalism will bring us to our knees eventually. It ain’t over til its over, and the fat lady ain’t ready to sing yet.

Stay tuned for the next horror picture show, coming to a neighborhood near you. You might recognize its title: It’s called, “Diversity is our strength.”

Posted by at 12:47 PM on September 21

“I never had a person opt for less house and more cash flow.”

—Jeff

But this is exactly what I did back in 1996 when I bought my house. The result was that I was able to keep it through three years of federal prison and pay off the mortgage in 2004.

A bigger house would merely have meant I would have had to do more vacuuming.

Posted by Michael C. Scott at 2:36 PM on September 23

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