Them That’s Got Shall Get

I read a good article on how the subprime crisis acted like a shaped explosion – shaped in the direction of Black Americans, that is.

As the wealthiest black-majority county in the United States, Prince George’s has long represented the pinnacle of black success. The county’s median household income is $73,568—a full $20,000 more than the median household income of the United States as a whole. Only 7.1 percent of U.S. firms are black-owned, but in Prince George’s that number stands at a whopping 54.5 percent.

I am heartened by the number of Black entrepreneurs – this is the way to the future! (And the way to build wealth…) But I am also suspicious of just how close local links are to long-term Black Federal employees. Blacks are overrepresented in the ranks of government bureaucracies – something that is going to bite, when the Great Default kicks in and there are massive cutbacks across the board.

Hint: Don’t be dependent on a government paycheck.

Across the nation, black homeowners were disproportionately affected by the foreclosure crisis, with more than 240,000 blacks losing homes they had owned. Black homeowners in the D.C. region were 20 percent more likely to lose their homes compared to whites with similar incomes and lifestyles. (See the December 2012 issue of The American Prospect, “The Collapse of Black Wealth,” by Monica Potts.) The foreclosure crisis also affected blacks of all income brackets; high-earning blacks were 80 percent more likely to lose their homes than their white counterparts, making the homeowners of Prince George’s County prime targets.

This is in part due to poor government policy, like the Community Reinvestment Act. But there’s more to the story than that…

It turned out that several of the major banks had been purposely giving people of color subprime mortgages, including borrowers who would have qualified for a prime loan. The City of Baltimore took Wells Fargo to court, bringing some of the banking giant’s abhorrent lending practices to light. One former employee testified that in 2001, Wells Fargo created a unit that would be responsible for pushing expensive refinance loans on black customers, especially those living in Baltimore, southeast Washington, D.C., and Prince George’s County—all locations with large black populations.

According to court testimony, some of the loan officers at Wells Fargo spoke of these subprime loans as “ghetto loans,” and referred to their black customers as “mud people.” There was even a cash incentive for loan officers to aggressively market subprime mortgages in minority neighborhoods. In the end, the Justice Department found that 4,500 homeowners in Baltimore and the Washington, D.C., region that had been affected by these flat-out racist lending practices.

Specifically targeted for subprime loans among the minority demographic were black women. Women of color are the most likely to receive subprime loans while white men are the least likely; the disparity grows with income levels. Compared to white men earning the same level of income, black women earning less than the area median income are two and a half times more likely to receive subprime. Upper-income black women were nearly five times more likely to receive subprime purchase mortgages than upper-income white men.

This happened about 40+ years after the Civil Rights acts.

Soon after the subprime crisis destroyed a major portion of Black wealth, there arose a Black president, who – along with his Black Attorney General, Eric Holder – decided not to imprison any bankers or financiers who lead the destruction of Black (and American) prosperity.

It would have angered their Goldman Sach friends, I suspect. And – since they can rely on the racial vote – why should they challenge the real powers that run America? Better to look good for the cameras, and get those million-dollar speaking engagements after retirement.

(I still can’t believe that those men just let the vicious Drug War just keep on destroying Black America, while undermining the rule of law for everyone! What a joke.)


So, now what?

There will be calls for more laws and more rules and more regulations. Like 40+ years of rules and regs have helped Black America.

(And do you seriously think that more rules are going to stop the banks from doing exactly what they want? Really?)

That isn’t going to work.

What is going to be needed are educated and trustworthy Black people, lending to each other, and building up their community.

You know, just like the Jews, and the Chinese, and the East Indians, and the Koreans, and all the other winners do.

But to do that, you need educated and trustworthy Black people – something that the government schools will be sure to either destroy at the root (see the inner city schools – including those ruled by Black mayors) or corrupt in the universities (Obama the Community Organizer? Oh please.)

As the schools have been worthless for 40+ years, this means homeschooling.

You also need a basis of trust and authority within the Black community – which means fathers that stick with and rule their families, and who work together to look after their families.

Begging for Our Political Master to save you isn’t going to cut it.

 

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