Why We Ended Up In The Shape We’re In

[Run To State]

In a nutshell - Minority Lending

 

You only need to look back to this 1993 article.

 

Shamed by Publicity, Banks Stress Minority Mortgages

[AirYardGo]

In a nutshell - Minority Lending

 

You only need to look back to this 1993 article.

 

Shamed by Publicity, Banks Stress Minority Mortgages

 

Right on.:thumb::thumb::thumb:

[HOOKSHOT]

Why We Ended Up In The Shape We’re In

 

 

And the very sad part is , we have not yet "ended up".:ohbrother:

[Clyde]

What % of the population do Latinos and Blacks make up?

[2 Humped Camel]

What % of the population do Latinos and Blacks make up?

 

I don't know but they make up about 10% of the subprime loans that have defaulted. Even Bill Cunningham acknowledges this. This is the great myth of the subprime crisis.

[2 Humped Camel]

In a nutshell - Minority Lending

 

You only need to look back to this 1993 article.

 

Shamed by Publicity, Banks Stress Minority Mortgages

 

That may have a fraction to deal with it but so does this.

 

http://www.nytimes.com/2008/11/17/business/economy/17gramm.html?pagewanted=all

 

and this little act...Commodity Futures Modernization Act of 2000

[Clyde]

I don't know but they make up about 10% of the subprime loans that have defaulted. Even Bill Cunningham acknowledges this. This is the great myth of the subprime crisis.

 

Lets say they (Latinos and Blacks) are about 25% of the population overall. I think we can agree that as a whole these two groups do not have a majority of their members owning homes. So you're talking about a very small % of mortgages being held by these groups - probably less than 20% of the overall home mortgage industry.

 

But lets limit it to subprime. These groups , as a %, make up a little less than 50% of the subprime mortgages given out in the last couple of years if my memory is correct.

 

When you factor in the value of the mortgages its probably , max, 10% of the total mortgage value.

 

These numbers are why we're having a financial crisis?

 

I don't buy it.

[Habib]

I don't buy it.

 

I agree. It may be a variable but it is by no means the full equation.

[westsider]

Lets say they (Latinos and Blacks) are about 25% of the population overall. I think we can agree that as a whole these two groups do not have a majority of their members owning homes. So you're talking about a very small % of mortgages being held by these groups - probably less than 20% of the overall home mortgage industry.

 

But lets limit it to subprime. These groups , as a %, make up a little less than 50% of the subprime mortgages given out in the last couple of years if my memory is correct.

 

When you factor in the value of the mortgages its probably , max, 10% of the total mortgage value.

 

These numbers are why we're having a financial crisis?

 

I don't buy it.

I agree. It may be a variable but it is by no means the full equation.

Yeah, but why should those pushing an agenda let facts, figures and cogent analysis get in the way of the point they wish to make?

[Run To State]

Agenda? Don't but it. I could care less what you guys think or buy, you're wrong if you think it isn't more than just a variable. I will agree that minorities aren't the only reason, but the fact is those on the left did everything they could to guilt banks into lending to those with unworthy credit ratings. Same thing, but it started with minority lending and spread into what is has become, plain and simple.

[Latch]

Agenda? Don't but it. I could care less what you guys think or buy, you're wrong if you think it isn't more than just a variable. I will agree that minorities aren't the only reason, but the fact is those on the left did everything they could to guilt banks into lending to those with unworthy credit ratings. Same thing, but it started with minority lending and spread into what is has become, plain and simple.

 

I'm not sure, but I think I'm agreeing w/ you in a way. It's not just the minorities but b/c of the practices of lending to people that couldn't afford it every race became able to get loans they couldn't afford. A few years back a friend of mine who was selling mortgages told me he could get me a loan on a 2 family house for 110% of the appraisal value. I couldn't even afford the payment at the time for 80% of the value, but I was approved for that loan.

[Clyde]

Agenda? Don't but it. I could care less what you guys think or buy, you're wrong if you think it isn't more than just a variable. I will agree that minorities aren't the only reason, but the fact is those on the left did everything they could to guilt banks into lending to those with unworthy credit ratings. Same thing, but it started with minority lending and spread into what is has become, plain and simple.

 

No question you can debate the logic behind the lending to minorities if they were not qualified but the numbers simply don't add up to them being the problem. The lenders made bad loans. They ignored logic and business 101.

[woodsrider]

What percentage of mortages are causing the problem?

[CoachBuckett]

They are blaming the wrong folks for banking failures.............It starts with the stupid folks running the backs and their choice to make bad investments.

[ladiesbballcoach]

They are blaming the wrong folks for banking failures.............It starts with the stupid folks running the backs and their choice to make bad investments.

 

So, you and I have no responsibility if we make poor financial decisions for ourselves and get ourselves into poor financial position.

 

I say both are at fault.

People for not being responsible.

Banks for not making good business decisions.

Both should have some negative consequences for the bad decisions and not get totally bailed out.

 

There is an old saying pain is nature's way of saying "Don't do that." If there is no pain to what is going on, then we are doomed to repeat it as a country.