Minority Mortgages Brought Financial Market to Its Knees
by Jeff Davis
The financial commentators and analysts of Wall Street aren’t unaware of what has caused the present economic crisis. The crash started with the collapse of the subprime mortgage market, which is effectively a code word for blacks and Latinos. They’re just scared to say it out loud. Fox News recently ran a story more or less admitting this was the case, a long article that spent paragraph after paragraph dancing around the truth.
Subprime loans originally were higher interest loans for people with poor credit. Gradually government pressure was applied to increase the number of minority loans for the sake of political correctness. To make this happen, the quality controls on subprime loans were thrown out one by one. Eventually, people with bad credit histories and who couldn’t make down payments and who verbally stated what their income was (without any proof) were allowed to get home loans. For the first few years these insane procedures went unnoticed because housing prices kept going up. What made it all come crashing down, was the current housing slump. As soon as housing prices dropped millions of Black and Latino subprime lenders walked away from their mortgages. They had nothing to lose because they had made no down payment. They weren’t worried about destroying their credit rating because they already had bad credit ratings. (more…)