RSS
From the Washington Post news section, an article that is clearly part of a new coordinated media-White House effort to fool around with housing
Home values soared during the pandemic, except for these Black families
Black communities are routinely undervalued. Even when they are among the nation’s wealthiest.
By Tracy JanTracy Jan covers the intersection of race and the economy for The Washington Post, a beat she launched in December 2016. She previously was a national political reporter at the Boston Globe. Twitter
Today at 6:00 a.m. EDTWhat is a community worth? The answer, all too often, depends on race.
… Homes in Black neighborhoods are valued at 23 percent less, on average, than those in comparable White neighborhoods — despite having similar neighborhood and property characteristics and amenities, according to a Brookings Institution report.
On the other hand, according to the conventional wisdom, gentrification is bad too.
The devaluation of Black communities adds up to about \$156 billion in lost equity — money that could have been invested in education and entrepreneurship, said Andre Perry, a senior fellow at Brookings and author of “Know Your Price: Valuing Black Lives and Property in America’s Black Cities.”
Equity, equity, equity. \$156 billion here, \$156 billion there …
“This is the money that can be used to lift yourself up that proverbial economic ladder,” said Perry, who also lives in Prince George’s County. “That is what’s being extracted from our communities.”
It’s being extracted how? By nonblacks not being optimal enthusiastic about gentrifying black neighborhoods? Will somebody please explain what that optimum is?
The undervaluation, even in the affluent Bowie enclave where the Taylors live, contributes to the yawning racial wealth gap in which the average White family in America holds eight times the wealth of the average Black family.
“We are a predominantly African American county, so in some people’s minds, there’s no way there is an affluence here that will either last or is seen as important at all,” said Kym Taylor, 58. “I could build the same house in Bethesda, and it’s going to appreciate. I know I’m going to have some equity that I could use for my business or my kids’ college. But making the same investment in Prince George’s? It’s negligible appreciation, and in some cases, even a depreciation.”
One home, a lifetime of impact
And yet, many Black families choose Prince George’s so their children grow up surrounded by other Black role models and relatively sheltered from discrimination.
Also, homes are cheaper than in other D.C. suburbs. Swings and roundabouts.
Just one lower appraisal could affect the cumulative wealth of an entire community, according to a new Biden administration report on the causes, extent and consequences of property misvaluation. Ultimately, undervaluation of Black communities could reduce property tax revenue to fund maintenance and improvement of local schools and amenities.
I look forward to a Washington Post article in the future complaining about the new racist program of upwardly evaluating black home values that is raising blacks’ property taxes.
Appraisal bias can hurt a family’s ability to leverage home equity to pay for college, expand a business, pay for repairs or use as a buffer during financial hardship.
For home purchases, an appraisal that comes in lower than the contracted price could result in a higher down payment, cause a sale to fall through or force a downward price negotiation, reducing the seller’s profits.
A 2021 study from Freddie Mac found that 12.5 percent of appraisals for home purchases in Black neighborhoods and 15.4 percent in Latino neighborhoods came in below the contract price, compared with 7.4 percent of appraisals in White neighborhoods.
And we’ll fix that by inflating home appraisals in black and Latin neighborhoods!
When refinancing, undervaluation could reduce the cash-out available and result in higher interest rates and mortgage insurance premiums.
The ‘heartbreaking’ decrease in Black homeownership
While home appraisals are supposed to be independent, fair and objective estimates of market value so lenders can accurately evaluate risk, the results depend upon the appraiser’s expertise and familiarity with the neighborhood, the Biden administration report found. Much rests on the appraiser’s selection of comparable properties and how they weigh those selections.
The appraisal industry remains one of the country’s least diverse professions; 98 percent of appraisers are White, according to the U.S. Bureau of Labor Statistics.
It’s actually 93.4% are non-Hispanic white, but that’s still a pretty striking percentage for this day and age. Who knew?
The federal report, to be released Wednesday, was the product of an initiative on property appraisal and valuation equity that President Biden announced in June as part of his focus on addressing systemic racism and closing the racial wealth gap.
After all, what could go wrong? George W. Bush’s 2002-2004 campaign to Increase Minority Homeownership was a huge success with no downsides (well, at least not until 2008).
[Being Black lowers the value of my home: The legacy of redlining]
You know, I’m starting to get the sense that that the modern belief in the malevolent effects of your house having been redlined is much like the old belief in the malevolent effects of your house having been haunted. Lots of states have laws requiring sellers to disclose if somebody died in the house. If that matters, then, sure, FDR’s redlining still matters.
Led by Housing and Urban Development Secretary Marcia L. Fudge and Domestic Policy Council Director Susan Rice, the task force recommended that the appraisal industry diversify to more accurately reflect American communities and require anti-bias, fair housing training for those who conduct appraisals for federal programs.
I look forward to the Washington Post article complaining that young black families can’t afford to buy in black neighborhoods anymore because valuations are artificially pumped up. And then there will be an article about how black realtors are going broke because black sellers are being told there houses are worth more than the market will bear so fewer transactions are being made.
Fudge, too, has said she is affected by appraisal bias in her neighborhood outside Cleveland.
“The appraisal process is so unfair,” Fudge said during a recent interview on “The Breakfast Club.” “I live two doors from an all-White community. I live in an all-Black community. My lot is bigger. My house is bigger. My house is valued at \$25,000 less than the house two doors from me. We have lost billions as a people solely through the appraisal process.”…
We want equity!
… Rep. Maxine Waters (D-Calif.), chairwoman of the House Financial Services Committee, plans to introduce legislation to address systemic appraisal discrimination. In a letter last month, Waters called on federal regulators to investigate appraiser misconduct, highlighting an email full of racist stereotypes from an appraiser who predicted that the increased focus on racial bias would prompt appraisers to refuse assignments in minority neighborhoods.
Meanwhile, some Black families are forced to consider whether it makes financial sense to buy a home in a tony predominantly Black neighborhood that might not be properly valued by appraisers.
If, due to appraiser bias, selling prices are lower than what they should be, then they can make a lot of money by buying. But if not …
English
Arabic
Chinese (Simplified)
Dutch
French
German
Hebrew
Hindi
Italian
Japanese
Korean
Persian
Polish
Portuguese
Russian
Spanish
Swedish
Turkish
Vietnamese
“VALUING BLACK LIVES”- No longer legal because of the 13th amendment.
“And yet, many Black families choose Prince George’s so their children grow up surrounded by other Black role models and relatively sheltered from discrimination.”
For those of you who don’t know, after Baltimore city, Prince George’s county is the most aggressively black county in the state of Maryland. Crime is rampant and the schools are poor in both jurisdictions. You may wonder, is there any correlation? The answer is yes, a heavy black population! Blacks overwhelmingly, other than the talented 10th such as Barack Obama and Katanji Brown, really don’t care much at all about education or law enforcement. As such, why would any non-black person want to move into these neighborhoods? This is complete lunacy. Just look at cities such as Baltimore and Detroit that became overrun with blacks in the 60s and 70s and see how that turned out. Steering away from black-dominated neighborhoods is a matter of of literal survival.
With the racial reckoning is it people watching the news and saying I really really really don’t want to live around blacks. That has to explain these outrageously low appraisals.
Black homebuyers should be thanking the appraisers for saving them thousands of dollars instead of castigating them for doing their job and helping buyers avoid paying too much for their homes.Replies: @Jim Don Bob
If you’re black, then:
***If you have bought a house, its value must be HIGH –but, at the same time, if your property is being taxed, then its value must be LOW.
***If you’re buying a house, then its value must be LOW — but, at the same time, its value must be HIGH so that you’ll be living in a ‘nice neighborhood’.
There’s so much magical, circular thinking here. The only way to even this all out is for a nice reliable flow of funds to be provided from some source outside the magic circle . . . .
It’s noticeable that government is shifting from merely not accomplishing much to actively seeking to sabotage the ordinary mechanisms of economic life. Maxine Water’s attempt to interfere with property appraisals would be just another example of this.
“money that could have been invested in education and entrepreneurship”
Yea, that’s exactly what blacks do with home equity, not buy luxury cars.
“ For home purchases, an appraisal that comes in lower than the contracted price could result in a higher down payment, cause a sale to fall through or force a downward price negotiation, reducing the seller’s profits.”
The first outcome has no loss. The higher down payment means more home equity. A lower sale price is also zero sum. In a black area, it means the presumably older and richer seller gets a bit less money from the buyer.
A sale “falling through” because of a low appraisal generally will mean (1) the buyer is overextended and has no money to cover the difference (2) the appraiser sees issues and is acting to protect the overconfident buyer and his lender from overpaying. A sale “falling through” once again does not destroy any wealth, the house doesn’t “fall through” into a pit, it is simply sold to a better qualified buyer.
What’s actually unfair is that Whites and Asians subsidize blacks and hispanics, who commit mortgage fraud at a higher rate as well as have a much higher rate of non-fraud defaults. And when they do default, the loss severity suffered by the lender is worse.
This racial gap extends to other kinds of loans, and exists even after adjusting for income and credit scores.
The appraisals appear too high , not too low. The sole example given in the article complains that her house was appraised \$25,000 less than homes in the nearby white neighborhood. Yet the white neighbors are the ones seeing their home prices depressed due to being too close to a black neighborhood. Most whites will gladly pay an extra 100 grand to have “good schools” for their kids.
Black homebuyers should be thanking the appraisers for saving them thousands of dollars instead of castigating them for doing their job and helping buyers avoid paying too much for their homes.
I sold a house several years ago and got at least an extra $20k because it was in a "good" (mostly white) school district.
Even so, I sent my kids to Catholic schools because Heather Has Two Mommies and the like was already ascendant 25 years ago in these "good" schools.
money that could have been invested in education and entrepreneurship
AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
Every couple of months, the WaPo or NYT or similar woke outlet makes the same retarded claim that blacks are losing out economically because the same house has a lower value when it is located in a black neighborhood.
Everytime, the comment section is filled with people who have functioning brains who point out the blindingly obvious point that this means the cost of home ownership is therefore lower for blacks, which means the alleged “value gap” is actually an economic benefit, not detriment, to blacks.
Everytime, the wokester authors refuse to even acknowledge this blindingly obvious point which negates their whole thesis. Rinse and repeat. Rinse and repeat.
It’s like a reassuring ritual that confirms the dishonesty and stupidity of wokeism. In case you had any doubt.
High Costs keep out Low Lifes. Is that a good slogan for the times?
Personally, I'd rather we had decent parenting and policing. But then, I'm a Republican.
Prince Georges County is a sh*t hole. It is basically South East Washington expanded.
What’s interesting is that it’s the richest county in the country for blacks, but still a murder capital. If you are white and still live in PG you’re an idiot. It’s terrible.
I know some blacks who want to live in PG, but they stay buy in the best neighborhoods . . . which I’m not sure I’m familiar with. My Dad grew up in Hightville, it was working class white even into the 70s, but now it’s all blacks and Hispanics, who get beat up and robbed by blacks.
My buddy who teaches in Montgomery County says the pipeline for Central Americans to DC is to make the boarder, then get to PG, then get over to Montgomery County and then you’re in.
PG County is just the worst. Even the Hispanics don’t expect justice in the court system. They figure that if they are the victim of a crime in PG the system will just go against them because the black who robbed them is one of them. It’s a disgrace.
PG County is an absolute hellhole and the fact that the blacks who live there have fat Fedgov sinecure paychecks is the single strongest proof that exists to show that no amount of money can cure black dysfunction. WaPo should be more careful lest even the wokest readers cannot continue to suspend disbelief.
Whatever, OK, inflate the value of every house by 30 percent just because. Next year bitch kvetch whine and complain that even 2 income affirmative action federal employee couples can’t qualify for mortgages.
True story. Chicago is a planned city a very well planned city right from the start in the 1830s. Residential neighborhoods for the mega rich, very rich upper middle class, prosperous middle class lower middle class prosperous and not so prosperous working class. Prostitution district, skid row district neighborhood retail downtown retail enormous rail yards stockyards heavy medium and light industry, giant warehouses for Sears Montgomery Ward Speigels lake beach parks museums aquarium s zoos, a place for everything and everything in its place.
The near south side; in the lake and beach and directly south of downtown was the designated mega rich neighborhood. Hyde Park where university of Chicago is located. It’s not a city college. It’s very very prestige. Built by Rockefeller. Who wanted it to become as famous and prestige as MIT, Stanford and Duke. But the neighborhood changed.
Well in the early 1920s a cousin of my grandma’s lucked out and managed to marry a very very not mega rich man. And he bought 3 acres in Hyde Park hired a garden designer and built them a 3 story 20 room mansion. With big garage and cottages for the unfortunately so unfortunately black help. The big houses all had live in black help with their thug kids stashed not far away. The smaller houses all had daily maids and cooks who lived not far away with their thug brats.
The black creatures took the Illinois Central railroad from south of New Orleans all the way to Milwaukee. Planting the seeds of destruction in every city and county along the way.
He paid \$80,000 for his 3 acres and mansion near South Side around 1919, 1920. They sold it in the early 1950s for \$7,000. After renting it out for about 15 years. Same house, same lot same neighborhood, same convenient 20 minute subway ride to downtown, same splendid beach and parks within walking distance.
Hyde Park high school. A fair number of Jews in the near South Side. In those days even very rich Jews preferred public high schools. So the Catholics sent their kids to catholic schools The Protestants sent their kids to local private schools or back east to Andover Exeter St Paul’s Farmington, Foxcroft etc. but lots of smart Jewish kids from elite families went to the local public school Hyde Park High. 1940 Hyde Park high one of the 10 best high schools in the state.1960 after the thug kids of the black household help took over the school always ranked among the worst in the state.
San Francisco Fillmore neighborhood. 1940 a wonderful neighborhood of upscale Victorian, Edwardian upscale houses . Built for rich to prosperous middle class families by expert tradesmen using best to good materials.
1941 war declared the substantial Japanese minority of Fillmore sent off to Myanmar concentration camp blacks brought from Texas and Louisiana to work in war industry. The empty Japanese houses rented to blacks and Fillmore was literally destroyed within 10 years. Those thugs made the neighborhood high school, Polytechnic such a hell hole the city finally tore it down and dispersed the thugs to other schools.
1975. Gay White men, not lesbians because the area wasn’t safe for unarmed White women and children started buying those gorgeous old homes. They were well armed, got organized and re civilized Fillmore block by block in a short time
Amazing how the black bullies ran when confronted by a couple well armed and aggressive White men. Of course the blacks bitched and whined they were being replaced. But they were almost all renters. Could have bought the house for a \$15,000 down payment. Less than the cost of the Lincoln Mercedes BMW or Cadillac in the garage. And tenants can always be evicted when the owner when the lease is up and a new owner wants to move in. No way to prevent it. Even in the most pro tenant jurisdiction.
1990 the neighborhood was White and safe again.
2,000 what with acceptance of gays everywhere and rising prices gays couldn’t afford Fillmore any more and wealthy White and Asian families moved back in.
Fillmore recovered. Hyde Park hasn’t and never will.
80K in 1920 7K in the early 1950s. And no one can understand why
The area was fairly good for a time and and people like Saul Bellow and Milton Freidman lived most of their adult lives there. Viewing from afar, it looks like the current Wokeist dispensation won't allow for the neighborhood to make another comeback. But they'll have to go back to the old pre-Woke days of law enforcement for the university to survive.Replies: @Steve Sailer, @Alden, @Alden
https://youtu.be/NR3fUAmO-qs?t=334
[5:34]
https://youtu.be/ORXXwPMAno0?t=1610
[26:50]
Boria Sax, his son went to Hyde Park HS in the 1960s.
https://www.youtube.com/watch?v=HfOpzLGEG-8
At the same time Ron Emmons, jail mate of Billy Hayes of Midnight Express fame, was attending.
https://www.washingtonpost.com/archive/lifestyle/1979/03/11/ten-years-locked-up/98de988b-22a1-42b5-a227-c63e7a130c64/
‘…inflate Home Prices in Black Neighborhoods…’
Home prices in black neighborhoods go up when Hispanics move in and displace the blacks — making the neighborhood inhabitable, if not exactly desirable.
So given the open border, maybe it’s all part of some giant plan. I’m still unclear on where the blacks go, though.
Everytime, the comment section is filled with people who have functioning brains who point out the blindingly obvious point that this means the cost of home ownership is therefore lower for blacks, which means the alleged "value gap" is actually an economic benefit, not detriment, to blacks.
Everytime, the wokester authors refuse to even acknowledge this blindingly obvious point which negates their whole thesis. Rinse and repeat. Rinse and repeat.
It's like a reassuring ritual that confirms the dishonesty and stupidity of wokeism. In case you had any doubt.Replies: @Colin Wright, @Polistra, @stillCARealist
‘…It’s like a reassuring ritual that confirms the dishonesty and stupidity of wokeism. In case you had any doubt.’
It’s only stupidity if you assume the preachers of woke have any interest in the truth. Disabuse yourself of that fallacy and their behavior becomes much more understandable.
In fact, the more absurd and indefensible the propositions of wokism, the better. If they were logical and based in truth, your submission to them would mean little. It is precisely when they are obviously ridiculous and yet you can be forced to at least silently acquiesce that they have gotten somewhere.
If I can get you to agree that it’s snowing heavily and you shouldn’t try to drive home and it is in fact snowing heavily, your agreeing to stay over doesn’t mean much. But if in fact it’s obviously not snowing when I insist it is, and you submit — well, we’ve settled who boss man is, haven’t we?
If that creature currently being proposed for the Supreme Court gave reasonable answers to the questions put to her and then was confirmed, it would be of limited significance. But what a triumph if she can declare she is unable to tell a woman from a man,etc, and then is confirmed!
There is a definite synergy between stupidity and dishonesty, though. Being stupid promotes dishonesty because it's easier to lie about things if you don't know (or can't figure out) what is true. Likewise, dishonesty promotes stupidity because deliberately avoiding true facts results in absurdly stupid conclusions.
“The name’s Mequity. Ho Mequity.”
Not if it’s tied up in your home. So he’s talking second mortgage here. And of course a tendency to take out second mortgages is not conducive to the kind of intergenerational wealth building that blacks have somehow been denied in the USA.
For those of you who don’t know, after Baltimore city, Prince George’s county is the most aggressively black county in the state of Maryland. Crime is rampant and the schools are poor in both jurisdictions. You may wonder, is there any correlation? The answer is yes, a heavy black population! Blacks overwhelmingly, other than the talented 10th such as Barack Obama and Katanji Brown, really don’t care much at all about education or law enforcement. As such, why would any non-black person want to move into these neighborhoods? This is complete lunacy. Just look at cities such as Baltimore and Detroit that became overrun with blacks in the 60s and 70s and see how that turned out. Steering away from black-dominated neighborhoods is a matter of of literal survival.Replies: @Polistra
Yep. The crime levels in PG County are shocking, and largely unreported. A good friend grew up there and moved away before he got killed.
Now that’s absolutely fascinating. This is Housing and Urban Development Secretary Marcia L. Fudge. And it’s not 1955 in Montgomery Alabama.
Should be quick work for some enterprising person to identify these two contiguous neighborhoods, which are 100% black and 100% white, in Ohio, in the year 2022.
I’ll bet thousands that no such place exists.
Even my Whitopia is not 100% White, being 0.8% Black plus a fair number of Asians. The high school of the city just inland of us is essentially 100% non-White but it’s not 100% Black either, having Latino and Others. But, it is 8030 feet away not two doors. (thanks Google Maps for the measure distance feature).
She probably lives two houses away from the boundary between her town which is predominantly Black and another town which is predominantly White.
What is her plan here? Does she want inflated appraisals on black homes to get home equity loans? With six interest rate hikes scheduled this year that isn't going to help for long. Does Fudge think if she can get an appraiser to say her house is worth X, a buyer is required to pay at least that much for it?
Author of the article is Tracy Jan.
An image search reveals an Asian woman with a black husband and a half Black/half Asian child.
This is hardly a disinterested academic.
If a black neighborhood is undervalued so greatly, then she outta be glad to get a good deal on a house in one.
I thought the Great Reset required the ending of private home ownership in the suburbs.
Everytime, the comment section is filled with people who have functioning brains who point out the blindingly obvious point that this means the cost of home ownership is therefore lower for blacks, which means the alleged "value gap" is actually an economic benefit, not detriment, to blacks.
Everytime, the wokester authors refuse to even acknowledge this blindingly obvious point which negates their whole thesis. Rinse and repeat. Rinse and repeat.
It's like a reassuring ritual that confirms the dishonesty and stupidity of wokeism. In case you had any doubt.Replies: @Colin Wright, @Polistra, @stillCARealist
All true, but it persuades millions, and they’re coming after your home, and your neighborhood. And who’s to say they won’t get them? More and more white people are eager to give them your home. But not theirs, not just yet.
Residential property appraisal is no longer a black art and is open to anyone. You can get the comps and dates of sale on Zillow and other sources.
When I sold a rental in Maryland, the comps that the “appraiser” (the Realtor in this case, not an actual appraiser) chose were in nearby but completely different levels of neighborhoods … because they were the only comps within six months. Recency is an important factor, but I pushed back and worked from a larger number of older sales in the actual neighborhood of my place, and correlated them with the trend line of prices in the other neighborhoods that had both recent and older comps and got a higher number. In the end I got the higher price.
At any rate, agents prefer faster sales at lower prices, since it doesn’t affect their fees that much.
Appraisal based on the condition of the structure is a different matter, but that comes down to getting in an inspector and getting estimates for any repairs he finds and adjusting your comps number. Appraisal based on new construction is irrelevant to most people.
Yea, that’s exactly what blacks do with home equity, not buy luxury cars.
“ For home purchases, an appraisal that comes in lower than the contracted price could result in a higher down payment, cause a sale to fall through or force a downward price negotiation, reducing the seller’s profits.”
The first outcome has no loss. The higher down payment means more home equity. A lower sale price is also zero sum. In a black area, it means the presumably older and richer seller gets a bit less money from the buyer.
A sale “falling through” because of a low appraisal generally will mean (1) the buyer is overextended and has no money to cover the difference (2) the appraiser sees issues and is acting to protect the overconfident buyer and his lender from overpaying. A sale “falling through” once again does not destroy any wealth, the house doesn’t “fall through” into a pit, it is simply sold to a better qualified buyer.
What’s actually unfair is that Whites and Asians subsidize blacks and hispanics, who commit mortgage fraud at a higher rate as well as have a much higher rate of non-fraud defaults. And when they do default, the loss severity suffered by the lender is worse.
This racial gap extends to other kinds of loans, and exists even after adjusting for income and credit scores.Replies: @HammerJack, @bigdicknick
Good post, but please note that this is one of the few remaining sites where people consistently spell words like “yeah” correctly.
“Yea” isn’t just a misspelling, or a typo; it’s an entirely different word (pronounced “yay”) with a different meaning and purpose.
Since I didn’t see Reg around I figured it was my time to step up. Thank you.
Home prices in black neighborhoods go up when Hispanics move in and displace the blacks -- making the neighborhood inhabitable, if not exactly desirable.
So given the open border, maybe it's all part of some giant plan. I'm still unclear on where the blacks go, though.Replies: @Redneck farmer
Ron Unz’s “New Triangular Trade”. Move blacks into white neighborhoods. Buy most of the property from fleeing whites cheap. Hispanics are encouraged to move in, driving out blacks. White gentrification, so sell your rental property for big bucks to the grandchildren of the people you bought the houses from!
I can’t help but think a lot of these “increase Black wealth” schemes are mostly going to benefit White financiers.
…….or, new cars ,cruise vacations and pieces of Indian women’s hair.
The black creatures took the Illinois Central railroad from south of New Orleans all the way to Milwaukee. Planting the seeds of destruction in every city and county along the way. He paid $80,000 for his 3 acres and mansion near South Side around 1919, 1920. They sold it in the early 1950s for $7,000. After renting it out for about 15 years. Same house, same lot same neighborhood, same convenient 20 minute subway ride to downtown, same splendid beach and parks within walking distance. Hyde Park high school. A fair number of Jews in the near South Side. In those days even very rich Jews preferred public high schools. So the Catholics sent their kids to catholic schools The Protestants sent their kids to local private schools or back east to Andover Exeter St Paul’s Farmington, Foxcroft etc. but lots of smart Jewish kids from elite families went to the local public school Hyde Park High. 1940 Hyde Park high one of the 10 best high schools in the state.1960 after the thug kids of the black household help took over the school always ranked among the worst in the state. San Francisco Fillmore neighborhood. 1940 a wonderful neighborhood of upscale Victorian, Edwardian upscale houses . Built for rich to prosperous middle class families by expert tradesmen using best to good materials.1941 war declared the substantial Japanese minority of Fillmore sent off to Myanmar concentration camp blacks brought from Texas and Louisiana to work in war industry. The empty Japanese houses rented to blacks and Fillmore was literally destroyed within 10 years. Those thugs made the neighborhood high school, Polytechnic such a hell hole the city finally tore it down and dispersed the thugs to other schools. 1975. Gay White men, not lesbians because the area wasn’t safe for unarmed White women and children started buying those gorgeous old homes. They were well armed, got organized and re civilized Fillmore block by block in a short time Amazing how the black bullies ran when confronted by a couple well armed and aggressive White men. Of course the blacks bitched and whined they were being replaced. But they were almost all renters. Could have bought the house for a $15,000 down payment. Less than the cost of the Lincoln Mercedes BMW or Cadillac in the garage. And tenants can always be evicted when the owner when the lease is up and a new owner wants to move in. No way to prevent it. Even in the most pro tenant jurisdiction. 1990 the neighborhood was White and safe again.
2,000 what with acceptance of gays everywhere and rising prices gays couldn’t afford Fillmore any more and wealthy White and Asian families moved back in. Fillmore recovered. Hyde Park hasn’t and never will. 80K in 1920 7K in the early 1950s. And no one can understand whyReplies: @fnn, @Joe Stalin
Hyde Park did recover for a long time. The University was first threatened by urban disorder in the 1950s and the response was a major Urban Renewal program that demolished all or most of the low-quality housing and all of the then many bars on 55th St. with the sole exception of Jimmy’s Woodlawn Tap, which the internet says still exists. For many years, the machine ward boss for Hyde Park was Marshall Korshak, a very erudite and subdued Jewish fellow who was the brother of Sidney Korshak, of whom Wikipedia says: “Sidney Roy Korshak (June 6, 1907 – January 20, 1996) was a lawyer and “fixer” for businessmen in the upper echelons of power and the Chicago Outfit in the United States. His reputation as the Chicago mob’s man in Los Angeles made him one of Hollywood’s most fabled and influential fixers.[1] His partnership with Chicago mobsters led him to be named “…the most powerful lawyer in the world” by the FBI.”
The area was fairly good for a time and and people like Saul Bellow and Milton Freidman lived most of their adult lives there. Viewing from afar, it looks like the current Wokeist dispensation won’t allow for the neighborhood to make another comeback. But they’ll have to go back to the old pre-Woke days of law enforcement for the university to survive.
Grandma’s cousin and husband weren’t associated with the college. Just the neighborhood. Maybe not close enough to The university to be safe.
University of S California is like that . Built in the 1870s in the very best part of town. Like Hyde Park, just south of downtown. What is it about just south of downtown that attracts the blacks?
USC has a big police force too. I’ve heard a lot of the students carry guns at all times. The White American men that is. The on campus dorms are high rise. Men only on the first few floors for obvious reasons. Used to be 2 other colleges nearby. Pepperdine and St Mary. When the neighborhood changed they fled the neighborhood. Pepperdine to Malibu. St Mary split. One campus high in the mountains on the border between Bel Air and Brentwood. The other now part of the USC campus. Like medieval Europe. When all the farmers and villagers fled to the castle when the invaders came.
USC neighborhood is getting much much better as the Hispanics re civilized it. USC does everything it can to encourage Hispanics. There’s a free day care center run by the college. And all sorts of town and gown outreach programs. Please please please move into the neighborhood.
Supposedly, when the neighborhood was at its worst USC threatened the city it would leave like Pepperdine.
Liberals........ all these colleges from Yale, Columbia USC University of Chicago built more than 100 300 years ago in the now surrounded by the worst black neighborhoods in the country. And their White hatred black worship continues as they hire more and more police and security and students and employees are victims of crime.
Does anyone know how New Haven Connecticut became a high crime black ghetto? I can see Columbia, Temple etc but New Haven?Replies: @Slugsmagee
A good tell for BS is when you can spin facts both ways. It implies incomplete argument.
The complaintants have source of wealth completely backward. As most home owners know, (oversimplified)
1) the value comes not from an absolute market price of a home, but the increase in value since you purchased
2) you have to live somewhere, and extracting value from a home is only practicable if you can sell AND move somewhere else that is cheaper
The first is unaffected by the market inefficiency , the second provides a potential exit plan.
What is less obvious is the different base price in neighborhoods puts money into the pocket of people exploiting the inefficiency. Purchasing Power Parity https://en.wikipedia.org/wiki/Purchasing_power_parity is used to correct for currency differences in inter country comparisons by using comparable goods rather than an arbitrary currency. Applied here, willingness to live in the less expensive, but comparable neighborhood is a super power for creating wealth out of nothing. It lowers cost of entry, frees up assets for other uses, and has higher upside should the neighborhood gentrify.
Obviously, gentrification is members from outgroups getting in on that action and erasing the market inefficiency. Gentrification happens because there are \$100 bills lying on the pavement, daring someone to puck them up.
Of course, one cannot cash out until gentrification, but the market can stay wrong longer than you can stay solvent. Welcome to capitalism.
“For home purchases, an appraisal that comes in lower than the contracted price could result in a higher down payment…”
That is, as far as I can tell, the diametric opposite of the truth. The down payment, traditionally 10% cash + 10% private mortgage insurance (or 20% cash, without PMI), is based on the selling price, which will supposedly be based on an appraisal (though appraisals are not set in stone).
On second thought, it’s just nonsense. When we bought our apartment, the seller wanted a certain range. She wanted more than we were able to pay, but the market (2004) in our neighborhood for a 1BR was depressed. She wanted to unload it, and so we got it for closer to our dream price than hers. The down payment was based on our negotiated price. There was, to our knowledge, no appraiser involved.
All this talk about “biased appraisers” is part of yet another black supremacist shakedown conspiracy. black supremacists seek to sue all White appraisers out of business, steal all of their meager assets, and get them all replaced by “brothas” and “sistahs.”
This seems to defy the laws of physics. Does she live in the second house from the end on one side of the interstate, and the house “two doors” away is the one at the end on the other side of the interstate? Certainly tendentious if not an outright lie.
The area was fairly good for a time and and people like Saul Bellow and Milton Freidman lived most of their adult lives there. Viewing from afar, it looks like the current Wokeist dispensation won't allow for the neighborhood to make another comeback. But they'll have to go back to the old pre-Woke days of law enforcement for the university to survive.Replies: @Steve Sailer, @Alden, @Alden
I have a couple of letters from Milton Friedman stored away in my attic and I saw Saul Bellow wearing about \$3000 worth of Burberry clothes at the Stuart Brent bookstore on Michigan Avenue in Chicago, so I’m in favor of policies that allow small smart guys like that to avoid predation.
As usual, policymakers want it both ways for blacks – more home ownership but higher property values at the same time. I have somewhat mixed feelings about the complaints about low appraisals. On one hand, enabling black homeowners to extract equity and take on more leverage on net is probably not a great idea. On the other, from personal experience I would say your average appraiser is just cranking these things out as fast as they can to earn fees without a lot of consideration and it’s quite possible to get hosed on this. I’m not black and when doing a refi a couple of years ago the appraisal came back absurdly low and missed multiple comps within a 2 block radius and relied on some that were up to a mile away. I’ve never seen an appraiser roll up to a property in a car that was made within the last 10 years either, so it strikes me as a job people take on because it doesn’t require too much training and you get paid on volume.
All that said, from my experience in rentals, it is undoubtedly true that blacks are far more likely to have deadbeat friends or relatives who show up to hang out or cause trouble. So even an upstanding and upper middle class family (or little old lady) is likely to cause heartburn for neighbors when their more troublesome acquaintances that they cannot say no to start coming around or move in while they ‘get back on their feet.’
That is not the fault of appraisers--it is just one of those "street secrets" the academics will never see.
Between the contradictions, obvious ignorance of basic economics, and inability to foresee the consequences of policy in this article, there is no point in arguing against it. As has been said before “it’s not even wrong”.
The result of having people who think this way in charge of our government is going to be horrific.
So the characteristics of your neighbor don’t count toward the characteristics of your neighborhood?
I guess prices in black neighborhoods are unaffected by the fact that black people live there.
Forsooth, and yeah verily!
That would be like \$30,000 of clothing in today’s money?
Would “street toughs” shoot you and then walk off with your Burberry jacket and slacks in the manner of the modern custom of taking someone’s high-priced sneakers?
Or does being a small guy offer protection because these clothing items wouldn’t fit a street thug with any street cred?
Then there is the question of the City of Chicago preserving the Hyde Park neighborhood for the benefit of maybe two of the numerous ethnic groups making up the tapestry of Chicago city life. Is there a civil rights case to be made that Hyde Park once obtained this benefit of stepped-up law enforcement and the elimination of “urban blight” whereas many other neighborhoods did not?
Could this differential protection at some point come up before the UN as an “ethnic cleansing” concern?
Everytime, the comment section is filled with people who have functioning brains who point out the blindingly obvious point that this means the cost of home ownership is therefore lower for blacks, which means the alleged "value gap" is actually an economic benefit, not detriment, to blacks.
Everytime, the wokester authors refuse to even acknowledge this blindingly obvious point which negates their whole thesis. Rinse and repeat. Rinse and repeat.
It's like a reassuring ritual that confirms the dishonesty and stupidity of wokeism. In case you had any doubt.Replies: @Colin Wright, @Polistra, @stillCARealist
As usual, middle class homeowning blacks are desperate to get the loser class blacks out of their neighborhoods. Whites and Hispanics do the same thing with their trouble-makers, but I wonder if anybody notices?
High Costs keep out Low Lifes. Is that a good slogan for the times?
Personally, I’d rather we had decent parenting and policing. But then, I’m a Republican.
I really don’t get it. Aren’t property taxes assessed on appraised value, rather than purchase price? If blacks paid 23% less for (the same) groceries as whites, would that be something blacks would complain about?
I’ve often thought and even suggested here that black people should be charged a higher property tax rate. As the article said, black people benefit from housing prices and property tax assessments that are considerably lower than white people pay. This rewards blacks’ poor behavior. They commit crime at a higher rate, so they get a tax break? Seems unfair. As this article says, the lower property tax collection hurts blacks through reduced services, like policing. HeyWaitASecond! Aren’t blacks really upset that they need more police services than whites?
As for comparable white neighborhoods, no way. It’s possible to create a pseudo race for statistical use if you have enough data. If you have income and IQ data for 100k blacks, you can create a subsample of blacks that has a “white-like” IQ distribution, ie μ = 100 σ = 15, and see what the incomes look like for those black pseudo whites, but the more things you try to create a pseudo race on, the smaller the number of people who fit. Like, it’d be difficult to create a white pseudo race out of blacks that matched whites on IQ, income, education, marital status, spouse’s IQ, felony record, children’s IQ, etc. The races are just too different to have lots of blacks that match whites in the upper end of the distribution. There’s just no chance that you could find a neighborhood of blacks that matched a white one on all of income, education, felony convictions, marital status, and IQ. If they match for income, the blacks will still be dumber, their children much dumber than the whites’ kids, more criminal…
It might be possible to match black and white neighborhoods at the low end of the white distribution for income, renting/owning, single momming… but match the adults for these things, then the children will still be different, cuz blacks regress to lower IQ and greater delinquency and criminality. A higher-income black area will have “bad schools” and more juvenile delinquency, criminal relatives needing a place to crash/hide out from the cops and criminals. Not to mention, the people looking to buy in a black ‘hood will have lower income and worse credit.
I read the article – some looked low. One couple bought for 1.6 and during height of market got 1.25 appraisal. Seems surprisingly low.
It doesn’t seem like it would be terribly hard to become an appraiser. You would need at least average aptitude in math and be able to understand some basic concepts about the housing industry. Can we assume this is because capable non whites have loftier career goals? I doubt the average Tiger Mom would be thrilled at the prospect of her son becoming an appraiser. Those who would struggle with the math or find it boring can find a much softer bed in the civil service or as a diversity hire for some woke corporation.
There can be pretty sharp gradients in racial composition, however, the 100% and 2 doors away figures are obviously hyperbole.
Even my Whitopia is not 100% White, being 0.8% Black plus a fair number of Asians. The high school of the city just inland of us is essentially 100% non-White but it’s not 100% Black either, having Latino and Others. But, it is 8030 feet away not two doors. (thanks Google Maps for the measure distance feature).
She probably lives two houses away from the boundary between her town which is predominantly Black and another town which is predominantly White.
The federal report, to be released Wednesday, was the product of an initiative on property appraisal and valuation equity that President Biden announced in June as part of his focus on addressing systemic racism and closing the racial wealth gap.
This is not really that complicated.
I saw this week that four black teens in New Orleans carjacked a 73 year old white grandmother, causing her arm to get torn off before she slowly expired. These atrocities occur on a bi-weekly basis, more or less.
I guess being nervous around significant numbers of black people is wicked, “systemic” racism. Likewise, the fact that the desirability of property in proximity to these people is somewhat diminished must be the result of a wicked, centuries old conspiracy to defraud the black race of the scads and scads of wealth only their unique productive capacity can generate.
Sure.
But the charming, intelligent, demure, and lovable Maxine Waters, she who showed up at the Chauvin trial to whip up a mob to intimidate the jury, has the answer. Maybe Al Sharpton has some solutions too.
No civilization can survive this level of insanity and lies.
The area was fairly good for a time and and people like Saul Bellow and Milton Freidman lived most of their adult lives there. Viewing from afar, it looks like the current Wokeist dispensation won't allow for the neighborhood to make another comeback. But they'll have to go back to the old pre-Woke days of law enforcement for the university to survive.Replies: @Steve Sailer, @Alden, @Alden
Thanks
Grandma’s cousin and husband weren’t associated with the college. Just the neighborhood. Maybe not close enough to The university to be safe.
University of S California is like that . Built in the 1870s in the very best part of town. Like Hyde Park, just south of downtown. What is it about just south of downtown that attracts the blacks?
USC has a big police force too. I’ve heard a lot of the students carry guns at all times. The White American men that is. The on campus dorms are high rise. Men only on the first few floors for obvious reasons. Used to be 2 other colleges nearby. Pepperdine and St Mary. When the neighborhood changed they fled the neighborhood. Pepperdine to Malibu. St Mary split. One campus high in the mountains on the border between Bel Air and Brentwood. The other now part of the USC campus. Like medieval Europe. When all the farmers and villagers fled to the castle when the invaders came.
USC neighborhood is getting much much better as the Hispanics re civilized it. USC does everything it can to encourage Hispanics. There’s a free day care center run by the college. And all sorts of town and gown outreach programs. Please please please move into the neighborhood.
Supposedly, when the neighborhood was at its worst USC threatened the city it would leave like Pepperdine.
Liberals…….. all these colleges from Yale, Columbia USC University of Chicago built more than 100 300 years ago in the now surrounded by the worst black neighborhoods in the country. And their White hatred black worship continues as they hire more and more police and security and students and employees are victims of crime.
Does anyone know how New Haven Connecticut became a high crime black ghetto? I can see Columbia, Temple etc but New Haven?
All that said, from my experience in rentals, it is undoubtedly true that blacks are far more likely to have deadbeat friends or relatives who show up to hang out or cause trouble. So even an upstanding and upper middle class family (or little old lady) is likely to cause heartburn for neighbors when their more troublesome acquaintances that they cannot say no to start coming around or move in while they 'get back on their feet.'Replies: @Justvisiting
That is why any house where black people live is automatically overvalued–along with the neighborhood that surrounds it.
That is not the fault of appraisers–it is just one of those “street secrets” the academics will never see.
The area was fairly good for a time and and people like Saul Bellow and Milton Freidman lived most of their adult lives there. Viewing from afar, it looks like the current Wokeist dispensation won't allow for the neighborhood to make another comeback. But they'll have to go back to the old pre-Woke days of law enforcement for the university to survive.Replies: @Steve Sailer, @Alden, @Alden
I have the book about Sydney Korshak by Gus Russo forget the name. There was a book about academics at university of Chicago written and set in the 1950s. Lots of talk about the negro problem. Philip Roth, Saul Bellow??
I have to read it in chunks. Guy in Paris can't get a room at a **** hotel, or they "lost" his reservation. He calls up Sidney Korshak in LA and, as if by magic, a luxury suite is freed up for Mr. Korshak's friend.
AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAReplies: @Mike Tre
Any validity to Colin Flaherty’s contention that the US government tabled R&D in space exploration by shifting all the funds to closing the achievement gab?
For an example of the zeitgeist of the time.
https://en.wikipedia.org/wiki/Whitey_on_the_MoonReplies: @Technite78
You can easily find her address through Cuyahoga county public records. She lives in a house built in 1952 across from what looks like a rather busy road from a subdivision that was developed 10-15 years ago. I think that is the comparison she is making.
What is her plan here? Does she want inflated appraisals on black homes to get home equity loans? With six interest rate hikes scheduled this year that isn’t going to help for long. Does Fudge think if she can get an appraiser to say her house is worth X, a buyer is required to pay at least that much for it?
The black creatures took the Illinois Central railroad from south of New Orleans all the way to Milwaukee. Planting the seeds of destruction in every city and county along the way. He paid $80,000 for his 3 acres and mansion near South Side around 1919, 1920. They sold it in the early 1950s for $7,000. After renting it out for about 15 years. Same house, same lot same neighborhood, same convenient 20 minute subway ride to downtown, same splendid beach and parks within walking distance. Hyde Park high school. A fair number of Jews in the near South Side. In those days even very rich Jews preferred public high schools. So the Catholics sent their kids to catholic schools The Protestants sent their kids to local private schools or back east to Andover Exeter St Paul’s Farmington, Foxcroft etc. but lots of smart Jewish kids from elite families went to the local public school Hyde Park High. 1940 Hyde Park high one of the 10 best high schools in the state.1960 after the thug kids of the black household help took over the school always ranked among the worst in the state. San Francisco Fillmore neighborhood. 1940 a wonderful neighborhood of upscale Victorian, Edwardian upscale houses . Built for rich to prosperous middle class families by expert tradesmen using best to good materials.1941 war declared the substantial Japanese minority of Fillmore sent off to Myanmar concentration camp blacks brought from Texas and Louisiana to work in war industry. The empty Japanese houses rented to blacks and Fillmore was literally destroyed within 10 years. Those thugs made the neighborhood high school, Polytechnic such a hell hole the city finally tore it down and dispersed the thugs to other schools. 1975. Gay White men, not lesbians because the area wasn’t safe for unarmed White women and children started buying those gorgeous old homes. They were well armed, got organized and re civilized Fillmore block by block in a short time Amazing how the black bullies ran when confronted by a couple well armed and aggressive White men. Of course the blacks bitched and whined they were being replaced. But they were almost all renters. Could have bought the house for a $15,000 down payment. Less than the cost of the Lincoln Mercedes BMW or Cadillac in the garage. And tenants can always be evicted when the owner when the lease is up and a new owner wants to move in. No way to prevent it. Even in the most pro tenant jurisdiction. 1990 the neighborhood was White and safe again.
2,000 what with acceptance of gays everywhere and rising prices gays couldn’t afford Fillmore any more and wealthy White and Asian families moved back in. Fillmore recovered. Hyde Park hasn’t and never will. 80K in 1920 7K in the early 1950s. And no one can understand whyReplies: @fnn, @Joe Stalin
Jewish Atomic Spy Saville Sax.
[5:34]
[26:50]
Boria Sax, his son went to Hyde Park HS in the 1960s.
At the same time Ron Emmons, jail mate of Billy Hayes of Midnight Express fame, was attending.
https://www.washingtonpost.com/archive/lifestyle/1979/03/11/ten-years-locked-up/98de988b-22a1-42b5-a227-c63e7a130c64/
The SouthSide of Chicago sometimes has markers like railroad tracks. But there also seems to be just a begrudging accommodation of how to live together – is Morgan Park divided by east and west of Western (whites to the west)? Wood Street goes north/south through Beverly along railroad tracks but the tracks move southwest. So is one part of Wood Street in white Beverly and another black East Beverly? Louis Farrakan once lived there and had white neighbors but I think the black part started only a couple of doors down.
There is a tremendous potential percentage return available for whites who can buy up low-cost homes in crime-ridden black areas, drive the blacks out, keep them out, and upgrade the homes. Of course, only whites with sufficient arsenals of violence at their disposal can entertain this investment strategy :
I don’t think it’s pure malice, though. Journalists really are economically illiterate, so they can say all kinds of dumb things and maybe believe them.
There is a definite synergy between stupidity and dishonesty, though. Being stupid promotes dishonesty because it’s easier to lie about things if you don’t know (or can’t figure out) what is true. Likewise, dishonesty promotes stupidity because deliberately avoiding true facts results in absurdly stupid conclusions.
When I sold a rental in Maryland, the comps that the "appraiser" (the Realtor in this case, not an actual appraiser) chose were in nearby but completely different levels of neighborhoods ... because they were the only comps within six months. Recency is an important factor, but I pushed back and worked from a larger number of older sales in the actual neighborhood of my place, and correlated them with the trend line of prices in the other neighborhoods that had both recent and older comps and got a higher number. In the end I got the higher price.
At any rate, agents prefer faster sales at lower prices, since it doesn't affect their fees that much.
Appraisal based on the condition of the structure is a different matter, but that comes down to getting in an inspector and getting estimates for any repairs he finds and adjusting your comps number. Appraisal based on new construction is irrelevant to most people.Replies: @res
To my mind that is one of the major flaws of the real estate commissions model we have. It would make more sense to have a sliding scale of commission rate relative to purchase price. Any idiot could sell a house for 1/10 its value so why pay 6% for that? But if you can get a buyer to pay me 10% OVER market price that might be worth a 25% commission rate on that portion. Not sure what the curve should look like in between, but seems like you could get the average close to typical 6% while incentivizing the selling realtor to push for higher prices much more effectively.
Crimestop prevents the woke from identifying the real reason that living in a black neighborhood sucks for blacks — it’s because they have to live near other black people! (Duh).
So they need to invent some nonsensical economic theories to blame white people for the general suckiness (and correspondingly low property values) of black neighborhoods.
The two goals were certainly placed in opposition. I think it is safe to say that affected policy decisions (“shifting all the funds” is hyperbole).
For an example of the zeitgeist of the time.
https://en.wikipedia.org/wiki/Whitey_on_the_Moon
Given a choice, I'd much rather have my tax dollars wasted on space exploration.
For an example of the zeitgeist of the time.
https://en.wikipedia.org/wiki/Whitey_on_the_MoonReplies: @Technite78
Government spending on inner city ghettos just results in newer cars, more expensive sneakers, and worst of all, more offspring… there’s probably no tangible change in the average net worth of the inhabitants over the long run. Possible exceptions may be enlarging the police force and adding jail capacity, but only if there was some effort to enforce law and order.
Given a choice, I’d much rather have my tax dollars wasted on space exploration.
Sorta on the topic of why whites avoid blacks:
Michigan school board president is removed after ‘choking and slamming head of fellow member and mother of three into a table – leaving her with two black eyes following disagreement at meeting’
https://www.dailymail.co.uk/news/article-10647803/MI-school-board-president-removed-beating-Treasurer-slamming-head-table.html
Green (pictured) allegedly slammed McIntyre’s head on the table, choked her, and repeatedly punched the woman in an unprovoked attack during the finance meeting on Wednesday
It’s precisely the other way around. The FIRE sector is extractive, and in mortgage lending it puts up house prices by lending the maximum that people can possibly afford to pay back. This is why so many people are in financial difficulty even though we live at the most prosperous time in history.
Black neighborhoods actually have a sweeter deal than other places. For the same money they can buy a bigger house. Yet here they are complaining that they want equality!
Grandma’s cousin and husband weren’t associated with the college. Just the neighborhood. Maybe not close enough to The university to be safe.
University of S California is like that . Built in the 1870s in the very best part of town. Like Hyde Park, just south of downtown. What is it about just south of downtown that attracts the blacks?
USC has a big police force too. I’ve heard a lot of the students carry guns at all times. The White American men that is. The on campus dorms are high rise. Men only on the first few floors for obvious reasons. Used to be 2 other colleges nearby. Pepperdine and St Mary. When the neighborhood changed they fled the neighborhood. Pepperdine to Malibu. St Mary split. One campus high in the mountains on the border between Bel Air and Brentwood. The other now part of the USC campus. Like medieval Europe. When all the farmers and villagers fled to the castle when the invaders came.
USC neighborhood is getting much much better as the Hispanics re civilized it. USC does everything it can to encourage Hispanics. There’s a free day care center run by the college. And all sorts of town and gown outreach programs. Please please please move into the neighborhood.
Supposedly, when the neighborhood was at its worst USC threatened the city it would leave like Pepperdine.
Liberals........ all these colleges from Yale, Columbia USC University of Chicago built more than 100 300 years ago in the now surrounded by the worst black neighborhoods in the country. And their White hatred black worship continues as they hire more and more police and security and students and employees are victims of crime.
Does anyone know how New Haven Connecticut became a high crime black ghetto? I can see Columbia, Temple etc but New Haven?Replies: @Slugsmagee
Two years ago I took my granddaughter to visit the Yale campus unofficially (she’s ten but a straight A student already thinking about her college options. I felt the way I did riding the NYC subways in 1980. Shirtless dreadlocked men splayed on park benches. Meth tweakers twitching and convulsing in entryways of stately old buildings. Three panhandlers approached with various hard luck stories. Few students in evidence but those walking hurriedly clutching their books with their eyes focused straight ahead. No campus law enforcement or security in sight. We hurried back to our car after fifteen minutes and felt lucky to get off the campus without incident. How did New Haven become a ghetto? I haven’t a clue, but a ghetto it certainly is.
Agreed–“agree” button was grayed out.
Supermob: How Sidney Korshak and His Criminal Associates Became America’s Hidden Power Brokers. I have it in the Rosebud Library here, but can’t find it at the moment. It’s huge, and expensive, but I got a great deal on it for the hardcover.
I have to read it in chunks. Guy in Paris can’t get a room at a **** hotel, or they “lost” his reservation. He calls up Sidney Korshak in LA and, as if by magic, a luxury suite is freed up for Mr. Korshak’s friend.
It’s oversimplified, it certainly didn’t procedurally happen that way, but it’s undeniably true that we as a society could have begun Larry Niven’s Known Space and mined the belt, and instead decided to devote money, which could have been spent on rockets, to forty-inch rims. Flaherty was a great, brave, valuable man but he had been professionally a journalist, his speaking and writing style was not that of Lionel Trilling (not that it was bad), but he didn’t strike me as having certain kinds of depth. I’ve never come across him going through the procedures and principles of something, the way Hugh Hewitt (who was a real professor of Constitutional law) will just whip out a layperson-friendly minimal-word explanation of how a part of government works.
There was a big theme in the 50s and 60s about urban decay from alcoholism focusing on white losers, which certainly existed, but briefly reviewing this theme (which appeared as widely as the top bill oscarbait Fail Safe and the delightful zero budget High School Big Shot, both of which have protagonists seeking to overcome a working class drunk father), I realize this may have been a way to talk about black people without talking about black people.
Drunk white people have been a big theme in American life: e.g., Prohibition.
1) the value comes not from an absolute market price of a home, but the increase in value since you purchased
2) you have to live somewhere, and extracting value from a home is only practicable if you can sell AND move somewhere else that is cheaper
The first is unaffected by the market inefficiency , the second provides a potential exit plan. What is less obvious is the different base price in neighborhoods puts money into the pocket of people exploiting the inefficiency. Purchasing Power Parity https://en.wikipedia.org/wiki/Purchasing_power_parity is used to correct for currency differences in inter country comparisons by using comparable goods rather than an arbitrary currency. Applied here, willingness to live in the less expensive, but comparable neighborhood is a super power for creating wealth out of nothing. It lowers cost of entry, frees up assets for other uses, and has higher upside should the neighborhood gentrify. Obviously, gentrification is members from outgroups getting in on that action and erasing the market inefficiency. Gentrification happens because there are $100 bills lying on the pavement, daring someone to puck them up. Of course, one cannot cash out until gentrification, but the market can stay wrong longer than you can stay solvent. Welcome to capitalism.Replies: @Nicholas Stix
Yet another op-ed that isn’t even disguised as a “news story.”
“For home purchases, an appraisal that comes in lower than the contracted price could result in a higher down payment…”
That is, as far as I can tell, the diametric opposite of the truth. The down payment, traditionally 10% cash + 10% private mortgage insurance (or 20% cash, without PMI), is based on the selling price, which will supposedly be based on an appraisal (though appraisals are not set in stone).
On second thought, it’s just nonsense. When we bought our apartment, the seller wanted a certain range. She wanted more than we were able to pay, but the market (2004) in our neighborhood for a 1BR was depressed. She wanted to unload it, and so we got it for closer to our dream price than hers. The down payment was based on our negotiated price. There was, to our knowledge, no appraiser involved.
All this talk about “biased appraisers” is part of yet another black supremacist shakedown conspiracy. black supremacists seek to sue all White appraisers out of business, steal all of their meager assets, and get them all replaced by “brothas” and “sistahs.”
Black homebuyers should be thanking the appraisers for saving them thousands of dollars instead of castigating them for doing their job and helping buyers avoid paying too much for their homes.Replies: @Jim Don Bob
“Good schools” is RealtorSpeak for not too many Shaniquas and Julios, and it’s real.
I sold a house several years ago and got at least an extra \$20k because it was in a “good” (mostly white) school district.
Even so, I sent my kids to Catholic schools because Heather Has Two Mommies and the like was already ascendant 25 years ago in these “good” schools.
Redlining protects sacred minorities from squandering their capital on assets that are declining in value.
Yea, that’s exactly what blacks do with home equity, not buy luxury cars.
“ For home purchases, an appraisal that comes in lower than the contracted price could result in a higher down payment, cause a sale to fall through or force a downward price negotiation, reducing the seller’s profits.”
The first outcome has no loss. The higher down payment means more home equity. A lower sale price is also zero sum. In a black area, it means the presumably older and richer seller gets a bit less money from the buyer.
A sale “falling through” because of a low appraisal generally will mean (1) the buyer is overextended and has no money to cover the difference (2) the appraiser sees issues and is acting to protect the overconfident buyer and his lender from overpaying. A sale “falling through” once again does not destroy any wealth, the house doesn’t “fall through” into a pit, it is simply sold to a better qualified buyer.
What’s actually unfair is that Whites and Asians subsidize blacks and hispanics, who commit mortgage fraud at a higher rate as well as have a much higher rate of non-fraud defaults. And when they do default, the loss severity suffered by the lender is worse.
This racial gap extends to other kinds of loans, and exists even after adjusting for income and credit scores.Replies: @HammerJack, @bigdicknick
source?