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The Democrats' New Plan: Put a Thumb on the Scale of Credit Scores
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From CNBC:

Joe Biden’s policy roadmap aims to create a new, federally-backed credit bureau to close the racial wealth gap
Published Thu, Jul 9 2020
@MEGAN_LEONHARDT

Americans may see the formation of a new federally-backed credit bureau if former vice president and presumptive Democratic presidential nominee Joe Biden is elected in November, thanks to the efforts of a task force appointed by Biden and Vermont Senator Bernie Sanders in May.

This week, the task force of Democrats presented Biden with a 110-page document of policy recommendations. NBC News first reported on the policy wish list on Wednesday. Although the document contains a wide range of initiatives from health care to immigration, the policy recommendations also focused on ways the U.S. can work to close the racial wealth gap, including creating a more level playing field when it comes to credit reporting.

“We’ve seen with horrifying clarity the cost of systemic racism,” Biden said in a speech given Thursday in Pennsylvania. “We need a dedicated agenda to close the wealth gap.”

During the last economic downturn, Black families experienced a 44.3% decline in median net worth, almost double that of White households, which only experienced a 26.1% drop, according to the Brookings Institution.

To help narrow the gap, the policy roadmap proposes creating a public credit reporting agency housed within the Consumer Financial Protection Bureau. This federally-backed credit bureau would “provide consumers with a government option that seeks to minimize racial disparities,” according to the document.

The federally-backed credit bureau would be required to ensure that credit scoring was not discriminatory and that algorithms used for credit scoring would include non-traditional sources of credit data such as rental history and utility bills.

Once established, all federal lenders would be required to use and accept the federal credit agency’s scoring, including for programs such as federal home lending, PLUS loans and other loans that are guaranteed by the U.S. government.

“There is a persistent, pernicious racial wealth gap that holds millions of Americans back, with the typical White household holds 10 times more wealth than the typical Black family,” the document says.

Credit reporting plays a major role in the racial wealth gap, experts say. While the major credit bureaus, Equifax, Experian and TransUnion, say their scoring does not take into account age, race, gender, income or geography, multiple studies have shown that Black Americans routinely have lower credit scores than White consumers. Earlier this year, the Urban Institute found that while more than 50% of White households maintained a FICO credit score above 700, only 21% of Black households were able to achieve the same.

In other words, that the commercial credit bureaus don’t discriminate by race is The Problem.

Not only were scores lower, but 1 in 3 Black households did not have enough credit information to generate a credit score (known as having a ‘thin’ credit file), while only 18% of White households had a thin file.

Obviously, America is completely lacking in entrepreneurial moneylenders who would like to find unfairly discriminated groups and lend them more money. As you’ll vividly recall, there was redlining from 1938-1968, but since then, history is just a blur.

… The reason these racial disparities exist in credit scores is because of historical and current discrimination, says Chi Chi Wu, a staff attorney at the National Consumer Law Center focusing on consumer credit issues.

Up until about 50 years ago, many U.S. banks participated in a practice known as redlining, denying Black Americans access to credit and financial services. That pushed many Black households to be unbanked or to turn to alternative lending options, such as payday loans, car title loans and pawn shops.

The fallout from those policies continues into today.

… “The common mantra is credit scores are objective,” Wu says. “Yeah, they’re an objective measurement. But when you go ahead and use them, you’re perpetuating the racial biases that they measure.”

Some have asked: “What could possibly go wrong with a revival, in effect, of George W. Bush’s Increasing Minority Homeownership push of 2002-2004 that helped lead to the mortgage meltdown of 2007-2008 by demanding his federal regulators, in the name of adding 5.5 million Homeowners of color, stop worrying so much about trivia like down payments and documentation of income?”

But as experts have devastatingly answered: “Huh? What are you talking about? I’ve never heard of such a thing. What does this have to do with redlining? How can something that, you claim, happened in 2020 be relevant to the 21st Century, when we all know blacks are eternal victims of Franklin Delano Roosevelt?

“Also, remember Emmett Till.”

 
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  1. The bureaucrats have to make everything so complicated.

    Just give every black person a perfect credit score by fiat–problem solved!

  2. happened in 2020 be relevant to the 21st Century

    2020? or 2002-2004?

  3. Anonymous[336] • Disclaimer says:

    Politics will be increasingly racial going forward. That’s the rule in multiracial societies. Remember the Latino block is bigger than the Black vote. And Asians and Muslims will continue to grow.

    But the biggest block will remain white for generations to come. Whites may be more assertive as a minority than they ever were as a majority.

  4. “… Chi Chi Wu … “

    Isn’t that racist or cultural appropriation or something?

    • Replies: @Reg Cæsar
    , @Paul Jolliffe
  5. J.Ross says:

    You have misinterpreted the plan. Consider the failure of the latest attempt to establish an alternative payment processing system after MasterCard refused to recognize it. This is not about giving undeserved credit to blacks, this is a mechanism for stealing earned credit from whites.

    • Replies: @Anonymous
  6. inertial says:

    10 years from now: “Evil banks are preying on minorities by forcing them to take out loans they cannot afford to repay.”

    • Agree: Colin Wright
    • Replies: @nokangaroos
  7. Do people really think the secret of prosperity is easy credit?

    Maybe an extremely disciplined person could leverage up to a large house and manage to pay/maintain it benefiting from appreciation on his borrowed money. Maybe. Maybe the real estate market goes down and he become underwater. Maybe he gets laid off and loses everything, closing costs, legal fees, title search, home.

    Captain Capitalism did a funny podcast on how to become rich in America. It was 90 seconds long, 60 of them the intro. Pan of the Captain in his British looking book lined study. Looks at camera. Says, “spend less than you earn.”

  8. If you are black, you already have, at the behest of the federal government, a heavy thumb on the scale in your favor in college admissions, college tuition payment, Medicaid, Obamacare, and mortgage lending. If you cannot access these things, it is not because of redlining in the 1930s. In fact, you can get education and health care even if you are straight up incarcerated (and nowadays incarceration is pretty much voluntary). So, maybe not mortgages yet, but check back after Stacey Abrams second term.

  9. Jimi says:

    If credit bureaus and banks were racist then black homeowners would have lower foreclosure rates than white homeowners with similar income and credit scores.

    Should be easy to verify.

    • Replies: @Art Deco
  10. Carol says:

    BTW, Scott Adams has discovered the reason for Systemic Racism: schools are racist! In outcome.

    So, racist!

    Brilliant.

  11. wren says:

    Chi Chi, Harvard, John Hopkins?

    Sounds like systemic racism to me.

    Maybe Jewish Americans’ credit scores should be dropped by 150 points.

    Asian Americans’ dropped by 125.

    Indian Americans by 100

    White americans score remains the same.

    Hispanics raised by 50.

    Black american raised by 100.

    Is this what she wants?

  12. anon215 says:

    My plan to close the wealth gap: White people should check the “African-American” box on every loan application, identifying themselves as black. As their loans get approved, it’ll improve the statistical outcome for blacks. If enough whites do this, our wealth gap “problem” will be Solved!

  13. anon[169] • Disclaimer says:

    When the bill comes due for this it will be paid by white taxpayers.
    As the official rules of business and government become ever-more weighted against whites, they will be forced to live outside the official economy, like Greeks who trade in cash or barter and don’t report most of their income. We will live in an increasingly corrupt society.

  14. @Almost Missouri

    It’s cultural appropriation from Jamaica:

    Is using “Do You Hear What I Hear” to push the torching of vehicles driven by poofters– with the poofters still in them– “cultural appropriation”, or just plagiarism?

    This might make a serviceable Trump spot: “The future under Joe.”

  15. Anonymous[342] • Disclaimer says:

    OT: Hilariously insane Gorsuch decision today re Oklahoma Indian territory. This guy is trying to singlehandedly bring down Trump.

    McConnell and the rest of the crew vetting potential scotus judges KNEW Gorsuch and his wife sat in the leftist version of church in their town in Colorado. There was another moderate congregation the Gorsuches chose to avoid.

    Vetting personnel knew this guy was a crypto lib. Now before the election he is going off like a time bomb.

    Gorsuch once again joined the four Marxists in a 5-4 decision.

    CONGRATS DONNY! YOU’RE THE WORST HIRING MANAGER IN THE HISTORY OF HIRING

  16. Daniel H says:

    Although the document contains a wide range of initiatives from health care to immigration,

    Okay, but what does the document say about immigration? Was there any room for the argument that ending mass immigration would be the best thing for low wage earners – black, white, brown alike – forcing capital/management to raise the wages of the lowest paid, creating a more equitable nation? Nah, I’ll bet the document calls for more immigration. Income will be made up for by easy credit, a prescription that Dems/Cucks/Wall Street/Management can all endorse.

  17. Lot says:

    The Senator from MBNA wants more blacks with bad or no credit histories to get more credit cards.

    Not sure if this or Colin Kaepernick’s “Risk Everything” $100 million Nike payday best illustrates the glories of Woke Capitalism. Jeff Bezos’s trannie-friendly union busting sweatshop warehouses and Elon Musk cancelling all employee bonuses except his own $700 million bonus are also contenders.

    • Replies: @Pericles
    , @Redneck farmer
  18. Dtbb says:

    So bLACKS net worth went from $10 to $5. My heart bleeds for them.

  19. Coag says:

    Black credit is objectively going to get higher once dear old Uncle Sam earnestly starts entering the business of “reparations” redistributing assets from whites to blacks. We’ll all get a nice lesson about the definition of “fiat”.

  20. notsaying says:

    It seems to me that including rental payments and utility bills in your credit score could be disastrous if you have financial problems — which many lower income people have. Isn’t it better to be able to hold off on utility payments if you are broke? I know I read that the credit bureaus were going to start offering the option of including these things and that it would help people establish credit and increase their credit scores.

    And I thought then well they would help if your payments were always current but could make you worse off if you fell behind.

    In any case money is the key to your credit. If minorities have much less money their credit scores will remain lower. People can help themselves too by making better choices but with prices of housing, healthcare and other essentials going up while wages stagnate, lower income people are being put into impossible situations. And of course we now have high unemployment which I think will last a long time.

    • Replies: @Alden
    , @Barnard
    , @Cato
    , @Anonymous
  21. Art Deco says:

    Let’s help blacks improve their balance sheets by…making it easier for them to borrow money. (And let’s show our concern for ‘black lives’ by allowing more lethal violence in black neighborhoods). Idiocracy is now.

    • Agree: Bubba, Kyle
    • Thanks: nokangaroos
  22. L. Guapo says:

    At least they capitalized White.

  23. Whassup says:

    Why not dispense with the half-measures and go full Fight Club? Biden should blow up all the banks and credit bureaus, erasing all debt and credit hate-scores.

  24. This is a minor variation on the usual government ponzi scheme, in which the government pledges taxpayer money to ensure banks still make a profit when lending money to people who won’t pay them back.

    The deadbeats take the money from the banks and default. The banks get paid by the taxpayers. (Kicking back some in political donations). The taxpayers get screwed. The government then shakes its fist impotently and blames banks for making “predatory” bad loans. Rinse and repeat.

  25. Thomas says:

    So what’s the best bet on a likely outcome? Another 2008-style mortgage meltdown or are lenders going to just “Harrison Bergeron” everyone’s credit to the lowest common denominator?

  26. Anonymous[255] • Disclaimer says:

    So, all this stuff about Diversity comes down to making immigrants and their children pay reparations for blacks.

    • Replies: @ben tillman
  27. Anonymous[816] • Disclaimer says:

    If only they had better credit scores, they wouldn’t be doing this. By the way, what part of LA is this? Looks like new condos in the background.

  28. theMann says:

    Gee, just give every one of them a million dollars, problem solved. Oh wait, next year when it is all gone, give them another million. And when that disappears, another million.

    White taxpayers since the early sixties have transferred 10’s of billions, probably trillions, of dollars of wealth to Negroes in this country and all we have to show for it is wrack and ruin. It is all we will ever have to show for it.

    It really is time to tell non-Whites to go to hell. Not another penny, not another iota of effort.

    • Agree: bruce county
    • Replies: @The Wild Geese Howard
  29. Anonymous[186] • Disclaimer says:

    You think that’s bad news? Did you know George Orwell was a tricky fucking asshole?
    And a jerk? And a loser? And a Nazi helper?

    You’re welcome!

    • Replies: @James N. Kennett
  30. @Almost Missouri

    Medicaid, Obamacare,

    Is there any racial criteria in healthcare coverage?

    • Replies: @Almost Missouri
    , @Pericles
  31. This initiative will grow Joe Diaper’s share of the African vote from 96.0% to 96.3%. Genius.

  32. The more things change, the more they stay the same. From Jared Taylor’s Paved With Good Intentions (published in 1992):

    The charge of racism is frequently leveled against mortgage lenders. In a 1989 study of ten million loan applications, the Atlanta Journal and Constitution found that whites were approved 74 percent of the time while blacks were approved 50 percent of the time. The newspaper did not consider such things as the applicant’s debt burden, credit history, value of the collateral, or size of the down payment, so the “study” means virtually nothing. This did not stop other newspapers from picking up the story, putting it on the front page, and running headlines saying that black applicants are twice as likely to be rejected as whites.170

    When the federal Office of Thrift Supervision released similar statistics several months later, it expressly pointed out that without data on the financial positions of applicants, it was impossible to pin the difference on race. This did not stop members of the U.S. Senate Banking Subcommittee from immediately asking regulators for new ways to force banks to stop racial discrimination.171

    The same empty drama was played out two years later, when the Federal Reserve Board released the same rough data showing the same disparities. Jesse Jackson immediately concluded that the figures confirmed “what we have known for decades: Banks routinely and systematically discriminate against African-Americans … in making mortgage loans.”172 In fact, in that year, the Fed’s figures showed that Asians were more likely than whites to be granted mortgages.173 No one appeared to notice; certainly no one argued that bankers are prejudiced in favor of Asians.

    In a few cities, journalists thought to test the racism theory by finding out whether blacks were more likely to have loans approved if they applied to black-owned banks. In Houston, Texas, the city as a whole approved black applications 50 to 60 percent of the time. The one black-owned bank, Unity National Bank, approved them only 17 percent of the time.

    The curious thing about this whole controversy is that there is not even a theoretical reason why bankers should refuse to make profitable loans to black people. [My emphasis] No one ever complains that white auto dealers or shoe salesmen refuse to do business with blacks. Are bankers somehow different from everyone else? Our elected representatives are prepared to believe that bankers systematically forgo profits in order to indulge prejudice. Like most Americans, they have never bothered to find out that black bankers are no more inclined to make risky loans than whites are.175 Like Unity National Bank in Houston, they may be less likely to make loans to blacks, since they know they will not be accused of racism for turning down a risky credit.

    How does Biden’s plan fit in with Matt Yglesias’ plan to invite 666 million foreigners to crowd into Blade Runner-style mega-towers in the US’ coastal cities?

    • Thanks: Mr McKenna
    • Replies: @Buroaker
  33. anon[109] • Disclaimer says:
    @Hodag

    Is there an independent archive of iSteve essays off of Unz? If not we need to create one. Soon. Wayback / Internet Archive cannot be relied on when it comes to heresy / crimethink.

  34. We’re recent, first-time mortgagers. We have good credit, put down > 20%, etc.

    We still had to submit about a zillion pages of documentation.

    I don’t see how unsophisticated, first-time home buyers can possibly satisfy the paperwork requirements necessary to receive a home loan.

    Moreover, lenders now seem to be even more suspicious. Unscrupulous borrowers are looking to exploit whatever safe harbor provisions will allow them to delay payments.

  35. If you sell your house, make sure you get paid for it upfront.

  36. Kronos says:

    Obviously, America is completely lacking in entrepreneurial moneylenders who would like to find unfairly discriminated groups and lend them more money. As you’ll vividly recall, there was redlining from 1938-1968, but since then, history is just a blur.

    I’m having flashbacks from the late 2000s. I was in the K-12 system while the 2008 crisis was going down. It marked the only time (older) kids started reading “The Economist” and “WSJ” from the school library trying to figure out what happened and what was next. They say you loose your humanity while in school and gradually regain it after you leave. Many of us joked about “The Amityville Horror” style family murder/suicides going on across the nation at the time. Also, that the finances on some houses were so toxic that not even a Catholic Priest could exorcism them out. (There were funnier/nastier jokes but I won’t post them.)

  37. @JohnnyWalker123

    Medicaid, as part of LBJ’s Great Society program to “have those n*ggers voting Democratic for 200 years” was meant disproportionately to help blacks at the expense of whites. Obamacare was the same only more so, with extra sops thrown in for gays, trannies and illegal immigrants.

  38. Anon[313] • Disclaimer says:

    Let’s bring bad debtor’s prison. Can’t pay it back, go to jail for a time. It’s the only deterrent we have.

  39. Alden says:
    @notsaying

    Helping all lower income people is fine. But as with everything else in America, this program will only help blacks.

    • Agree: HammerJack
  40. Whiskey says: • Website
    @Almost Missouri

    Yep and so there will be loans for Blacks only at preferred rates and Whiteys will pay double at least.

    Screwing over White people is very popular. It has been the path to success in politics and culture since the 1920s. Don’t look for change ever.

  41. “The reason these racial disparities exist in credit scores is because of historical and current discrimination, says Chi Chi Wu”

    And no one catches the irony in a Chinese person, a member of a group that benefits from affirmative action on the basis of past discrimination, claiming that disparities in credit scores are due to past discrimination.

    The credit scores of Chinese being on par with blacks, of course.

  42. @Hodag

    controversial rationalist

    Some unprecedented honesty here.

  43. Barnard says:
    @notsaying

    Virtually no municipality that gets snow in winter will turn off the heat on someone who hasn’t paid their bill until at least May and sometimes June. After credit cards, utilities are one of the first things people with financial problems quit paying on time. I don’t see how this is going to help other than getting them one step closer to their ultimate goal of getting everything for free.

    • Agree: HammerJack
    • Replies: @Ed
  44. Chi Chi Wu

    Anyone else read that using their Les Nessman voice?

    • Replies: @Achmed E. Newman
  45. 216 says:

    They never allow us to have anything

    • Replies: @HammerJack
    , @anon
    , @Pop Warner
  46. Since it’s federally backed, does that mean we get to pay for defaults?

  47. Trelane says:

    Everyone should have the same credit score. This way we’re all equal. And isn’t equality what we all want and deserve anyway and isn’t it who we are? Black, white, it doesn’t matter since we’re all the same. We’re all the lowest common denominator now. The rush to the bottom.

    • Agree: bruce county
    • Replies: @Achmed E. Newman
  48. syonredux says:

    Woke logic:

    How have you helped Blacks?

    Well, I saved the entire planet a couple of times, and Black people live here….

    Don’t count! Saving the whole planet helps everyone. What have you done that only helped Blacks?

    Uh…….

    • Replies: @wren
  49. Bugg says:

    What else would you expect for the Senator from MBNA. Biden was instrumental in loosening credit card standards in the 1970s and 1980s so generations of college students could get credit cards without any chance of paying them back. But it kept Delaware’s bank holding companies collecting interest payments that would make an Italian loanshark jealous.

  50. NOTA says:

    If the official scores are skewed to ensure blacks and whites have the same average score despite widely different average income and wealth, and interest rates or credit offers must align with the official score, then whites and Asians will get worse credit terms than is merited by their ability to repay, and blacks will get better credit terms. This will make lending to blacks a worse business to be in than lending to whites, and *that* will lead to businesses actively avoiding blacks’ business where they can–the opposite of the intended goal of the policy.

    There is a great entrepreneurial opportunity here to find some nomstandard way to effectively extend credit without using a credit score. That will let a lender evade the cooked credit score and make a better decision, lending money to creditworthy people at more attractive rates than the credit score businesses can do.

    • Replies: @Barnard
  51. Bravo! Yet another mechanism for redistributing your resources, not a single one of which ever seems to end up on the Reparations Ledger.

  52. @Almost Missouri

    Well, I meant to say.

    When people of different ethnic back grounds apply to these programs, are there criteria that would increase/decrease your probability on the basis of race? Do Blacks have different cutoff criteria for approval for various healthcare programs? Are there major healthcare programs that Whites are not eligible for?

    I know Native reservations have their own special healthcare programs.

  53. wren says:
    @syonredux

    He needs these folks!!!

  54. @Almost Missouri

    Someone needs to let BLM and the rest of the “Woke” crowd know that blocking interstates, tearing down statues etc. is pretty damn weak. If they really want do destroy the legacy of racism in this country, they should be cancelling the policies of these horridly racist Presidents. Start with Johnson’s “Great Society” and then move on to anything Woodrow Wilson was involved in.

  55. @Almost Missouri

    AM, the Obamas spent eight years in government housing and saved enough to buy a Martha Vineyard estate. Must learn to be frugal.

  56. I’m old enough to remember redlining. Or at least old enough to remember the media making hay of it.

    Redlining was the pernicious practice of banks considering the likelihood of repayment when advancing credit.

    Since that (like everything) results in Disparate Impact, give me all your money. Also, aren’t you people supposed to be on your knees?

  57. Up until about 50 years ago, many U.S. banks participated in a practice known as redlining

    Are they saying that Nixon got rid of it? Because I’d like to let them know that Nixon was the Trump of his time. Like Trump, but with better manners.

  58. Cato says:
    @notsaying

    It sucks being low income. And if a low-income person has a genetic endowment of low IQ and laziness, they have almost no chance of moving up in life. Your sympathy is appropriate.

    But. Credit scores send valuable information to firms willing to extend credit. Were Biden to distort the credit score, the information becomes untrustworthy, and firms would make decisions that could cost them dearly. Do firms deserve to be punished?

    And. The thumb is to be put on the scales, not for the low income, but for Blacks, including both low and high-income persons. That doesn’t seem fair. And since Blacks have never been grateful for the multitude of special favors they’ve received, and in fact have begun to believe that they deserve their privileges, it seems inadvisable to do them yet another special favor.

    • Agree: HammerJack
  59. Sounds like they’re bringing back those ads for The Money Store — but with Biden instead of Phil Rizzuto

  60. Barnard says:
    @NOTA

    The government regulates all lending. If they found any business that successfully implemented this strategy they would force them to either start lending to blacks or fine them out of existence.

  61. Mr. Anon says:

    Biden ran as a moderate against Sanders socialist, but seems to have completely capitulated to the Sanders platform. Sanders was interviewed on NPR and seemed quite pleased that the Biden campain adopted almost all of his proposals.

    Another one of the policy recommendations in that document:

    End Cash Bail: Withhold funding from states that continue to use cash bail or other pretrial practices that produce racial bias or other forms of discrimination.

    So the entire country will be able to enjoy the peace, law, and order that cashless bail has brought New York.

    • Replies: @The Wild Geese Howard
  62. The Democrats are trying to put their thumb someplace else: Up the arse of the US economy. And during the midst of COVID-19, no less. May we all live in interesting times, and 2020 is that year, and that time.

  63. Dr. X says:

    Not only were scores lower, but 1 in 3 Black households did not have enough credit information to generate a credit score (known as having a ‘thin’ credit file), while only 18% of White households had a thin file.

    It can be difficult to build a credit history if you’re doing 15-20 for armed robbery or attempted murder…

    • Replies: @Redneck farmer
  64. Jack D says:

    It sounds to me as if this program (thank goodness) promises more than it will actually deliver:

    Once established, all federal lenders would be required to use and accept the federal credit agency’s scoring, including for programs such as federal home lending, PLUS loans and other loans that are guaranteed by the U.S. government.

    I don’t know what % of lending this constitutes, but it sounds like it excludes NON-Federal lenders, consumer credit (credit cards). automobile lending, non-federally guarantied home loans, etc. The credit bureaus are big businesses with expensive lobbyists and would not take kindly to being put out of business by a Federal monopoly credit bureau.

    • Replies: @International Jew
  65. Wilkey says:

    This week, the task force of Democrats presented Biden with a 110-page document of policy recommendations….focused on ways the U.S. can work to close the racial wealth gap.

    So they’re going to make sure that Jews and Asians are no richer than the rest of us? Cool.

    • LOL: HammerJack
  66. Remember when credit wasn’t a thing? It wasn’t that long ago.

  67. @216

    Their own way of “honoring” America is pretty much like destroying it, but why pick nits?

  68. anon[179] • Disclaimer says:

    One of my predictions for the future of the American empire involved an era of periodic economic crashes once the woke left gained total control over the government. The logic behind the prediction lies in the fact that people never learn from history or, more specifically in this case, people never let contrary facts dissuade them from strongly held beliefs — which are rarely informed by a careful, unbiased analysis. The white left fanatically adheres to a set of religious principles on race, history, and socioeconomics that one cannot dislodge them from no matter what is said to the contrary.

    As a result, we’ll go from the Housing Crisis to the Credit Crisis to the Green New Deal Energy Crisis to the Climate Change Economic Crash Crisis to the Military Budget Reduction Crisis to the Sovereign Debt Crisis to the Reparations UBI Crisis to the Student Loan Crisis to the Urban Real Estate Crash Crisis to the Urban Renewal Municipal Loan Crisis to the Karen Home Seizure Crisis (modeled on Zimbabwe’s farm seizures — just steal homes from Whites without compensation because history or because racism or inequality or whatever) …

    Practically the only prediction I — and others — have made that hasn’t (yet) come true, in whole or in part, or involves China curb-stomping the U.S. over Taiwan. At this rate, I’m not ready to call it a night on that prediction.

    Sneak peak of the future (*warning for the faint of heart*):

    [MORE]

    America of 2060 is a broken, defeated mess — a totalitarian regime beset with economic problems, few rights and no privacy. It has long been stripped of its cultural vitality, much of which has emigrated to China. Books are censored or banned. Many old movies are not available or have been remade with the new regime’s values (racial diversity, ideological conformity, victim shaming, divisive identity politics, anti-(old)Americanism). Most White American monuments have been destroyed by this point, including the Washington Monument and Mount Rushmore.

    The country has a large bloc of the population (mostly non-whites) in perpetual unemployment due to automation, and this situation was not fully ameliorated by technology and smart economics because the inept government didn’t plan ahead and isn’t savvy or impartial enough to fix current problems. Most of the best technological products come from China. That country also is the world leader in biotechnology, a science the American left decried and abandoned decades ago as racist.

    The country’s smart fraction has either begun to move out of the United States by this point or it is steadily streaming out as the Whites of South Africa have been doing since the 1980s (almost a million by this point). Rich White Americans are fleeing in record numbers to select European, South American, and Asian nations.

    America is heavily non-White. The republican party is all but extinct. The U.S. POC elite is dumping millions of Africans into the country with predictable results; heretics are found and blamed for this (the police, Whites, Christians, men, Karens … random targets of the mob). The U.S. military has long been chased out of Asia and Europe, partly due to growing cultural separation and partly due to the fact that China is so obviously superior in technology, numbers, funding and morale by this point; the POC democrat party further cuts the military budget to levels resembling modern day Russia in order to pay for more social programs for their POC constituents. The economy suffers periodic crashes due to harebrained schemes like The Green New Deal and reparations — unopposed because the republican party is nonexistent.

    Religiosity and family formation are at all time lows; so is patriotism. A large percentage of the population did not have a father actively involved in their lives. A majority of people do not have significant others. A loneliness crisis has been brewing since the 2030s, despite online technologies.

    The regime employs a large and sophisticated police state to keep the populace under control, much of which is done secretly; although occasionally someone is sacrificed publicly to serve as a warning to other dissenters. Local police are nationalized under the democrat party’s control. The crime rate is surprisingly high considering advancements in technology. Part of this is explained by the woke left’s religious insistence that differences in crime rates among Whites and non-whites is the result of discrimination or some other trendy dogma of the moment. POC prosecutors and lawmakers work to close the gap by letting some groups commit robberies and thefts under a certain monetary value.

    The school system is a mess. A third of universities are shut down. The remaining ones have dramatically lowered standards as POCs grow in number but not in ability. The same is true of primary schools. Many talented Americans now move overseas for a quality education, some of which still can’t be done online, especially in graduate work.

    Guns were banned long ago and conservatives predictably did nothing to stop this aside from complaining. Some are still around, though. Private security guards who patrol the gated-communities of white leftists are allowed to have them. The descendants of Samantha Bee, Seth Myers, and Stephen Colbert live in safety behind the walls their wealth created (but decried for the rest of us).

    Laws are applied unevenly among the races. Whites are more likely to be prosecuted for speech code violations and receive longer sentences for offending non-whites (true in South Africa already). The regime employs all manner of sophisticated technologies to weed out crime thinkers: facial recognition technologies designed to detect “bias” are employed over social media; they are adopted for employer / government hiring.

    The interview process will be like something out of Bladerunner:

    Interviewer: “Look at this picture. How does this picture of a BLM ‘protest’ make you feel?”

    Subject: Fine, I guess.

    Machine: Beep. [Racist Deception Detected]

    Interviewer: Ahhh! Take his picture and release the video publicly on Twitter and call security!

    The guy is publicly exposed as a crime thinker and sent to reduction. His family denounces him and claims they support the values of Martin Luther King jr because they don’t see race.

    Other things to look forward to include the following:

    Corporate China crushes Corporate America in the 2020s and 2030s; China surpasses Silicon Valley in the 2030s; the brewing cold war between the U.S. and China turns nasty because the U.S. can’t compete; the Japanese and Europeans move away from the U.S. as it becomes more fanatically racist against American Whites, practically the only group either location has any real cultural connection to, trendy black rap music and clothing aside; the U.S. goes full totalitarian once all checks and balances are removed restraining the woke left; the United States ends up a combination of Venezuela economically, Brazil ethnically and South Africa in terms of racial / historical resentment; China eventually surpasses the United States culturally, although that is probably the most controversial (unlikely?) prediction.

  69. Wilkey says:

    1 in 3 Black households did not have enough credit information to generate a credit score (known as having a ‘thin’ credit file), while only 18% of White households had a thin file.

    Why do they alternate between units? They use a ratio for black households (“1 in 3”) but a percentage (“18%) for white households.

    The truth is that 33% for blacks vs. 18% for whites just wouldn’t surprise people all that much. So they switch between the two units to make it sound worse than it is.

    And earning a high credit score isn’t always easy. When I finished college I was, like a lot of other people, ass deep in debt. My credit score was shit, too, and there were times when I struggled to pay the bills. I didn’t earn an 800+ credit score by being white. There were times when I didn’t have an 800+ credit score. The fact that about half of whites have credit scores < 700 proves that being white has nothing to do with it. I earned it by sacrificing, slashing expenses, and paying back the lenders I promised to pay back (though given their politics, there were times when I wish I had said screw ‘em).

  70. anon[698] • Disclaimer says:
    @216

    Secede and be free or remain and be slaves to racist left-wing Marxists? Is that even a choice?

  71. Ed says:

    Blacks don’t pay their rent and utility bills either. What then?

  72. Anon[314] • Disclaimer says:
    @Hodag

    I read the whole thing. I’d never heard of Gideon Lewis-Kraus before I clicked on your link. He’s clearly a smart guy and a lucid prose stylist, but his essay is a smirking, slippery hit piece.

    What’s really happening here, in this New Yorker piece and in the planned NYT piece that kicked this off, is a legacy media backlash against internet commentary. Lewis-Kraus tries to gaslight his readers about this, describing it as the paranoid ideation of Silicon Valley nerds, but in fact the nerds’ paranoia is justified.

    Lewis-Kraus and his peers in the prestige media find it irritating and disturbing that they no longer have full control over the megaphone. For one thing, unedited bloggers and comment sections can air viewpoints (like Steve Sailer’s) that Lewis-Kraus and his friends don’t like. For another, the blogosphere just makes them look bad. After all, it’s kind of embarrassing that Scott Alexander produces more and better work for free in his spare time than most of the The New Yorker or NYT writers do as well-paid journalists.

    To save you time, I’ll give you the some of the highlights of this piece:

    1) People with power and influence in Silicon Valley should not have the temerity to question the methods of important media outlets. They’ll report on whomever they choose in whatever manner they choose, and anyone who has an issue with that is problematic.

    3) The online rationalist community is comprised of weirdos who can’t make small talk, and you should have contempt for them.

    2) “Here, watch me taunt Scott Alexander by listing a bunch of identifying information about him without actually revealing his name, which you could easily figure out if you used the clues I gave you.”

    4) Permitting a free exchange of ideas online is a dangerous threat to Our Democracy, and it’s time to shut it down. (But I didn’t just say that, and you’re paranoid if you think I did.)

  73. Ed says:
    @Barnard

    I work for a utility and this is correct. Our bad debt reserve has increased significantly since now we can’t shut off during the summer due to Covid.

  74. While the major credit bureaus, Equifax, Experian and TransUnion, say their scoring does not take into account age, race, gender, income or geography, multiple studies have shown that Black Americans routinely have lower credit scores than White consumers.

    That can’t be. There’s gotta be a bug in the code, then. Just put a break point right before the line that adds in weighted car color, window-tinting, and tire-profile %. Check the score variable there. We can get to the bottom of this.

    • Replies: @duncsbaby
  75. I have a solution to the racial wealth gap. Let’s have the government create a new currency (alongside, not replacing, the Dollar). Call it the “Black Dollar”. Print huge amounts of it and distribute it to people of color — a billion BDs for every man woman and child of color sounds about right. Harriett Tubman could go on the 20-million note.

    • Replies: @nokangaroos
  76. @TontoBubbaGoldstein

    Cheye, Cheye RODriguez?

    WhatdoIwin?!

  77. @Trelane

    It’d actually be better this way. We’d be a better country if people paid for their stuff with saved money again, houses excepted I suppose.

    I tried to rent a car with a debit card. It used to be no problem, but apparently, I don’t have BAD credit – I have NO credit. I guess a bunch of yellow dashes or “N/A” appears on the screen.

  78. @Jack D

    The credit bureaus are big businesses with expensive lobbyists and would not take kindly to being put out of business by a Federal monopoly credit bureau.

    That was the old America. In the new America, businesses abandon valuable trademarks (Aunt Jemima, Woodrow Wilson) and pay millions to the people who loot their stores, just to avoid the “racist” stigma.

    • Replies: @Jack D
  79. anon[139] • Disclaimer says:

    So short sell amex and visa if biden wins?

    More so than everything else that is.

    Except weed stocks, those might be a buy.

  80. duncsbaby says:
    @Achmed E. Newman

    “You have to get into the numbers.” – noted skinhead Tracee Kissee (sp?)

  81. Pericles says:
    @Lot

    Not sure if this or Colin Kaepernick’s “Risk Everything” $100 million Nike payday best illustrates the glories of Woke Capitalism.

    Here I’d like to note that Nike was the goddess of victory of a well-known slave owning people, the Ancient Greeks. Please, have we not gone beyond this in the last month or two? So first of all, rename Nike to something modern, non-racist and appropriate. Let me suggest ‘Foreign Manufactured Shoes, Inc’.

  82. @Lot

    Shhhhh! Keep talking about stuff like this, and the “woke” will doxx you, bro!

  83. @Dr. X

    Now, now, Dr. X, you know that boy dindu nuthin but sell a bag of weed.

  84. Pericles says:
    @Hodag

    This seems like some jew-on-jew violence for the once. Article author Gideon Lewis-Kraus:

    “If David Foster Wallace had written Eat, Pray, Love it might have come close to approximating the adventures of Gideon Lewis-Kraus”, wrote Gary Shteyngart on his friend’s debut novel, A Sense of Direction. JBW brings the two writers together to discuss an incredible series of pilgrimages.

    Inspired by his rabbi father’s late coming out as a gay man, Lewis-Kraus is determined to experience all that he can before settling down. It is a transformative journey, for Lewis-Kraus and his readers alike.

    https://jewishbookweek.com/event/gideon-lewis-kraus-a-sense-of-direction/

    Jew praises jew friend in jewish book-pushing publication. Since we’re used to it by now, not sickening at all.

    • Replies: @Bugg
    , @Pop Warner
  85. Pericles says:
    @JohnnyWalker123

    I got the impression that Obamacare pushed a lot of expenses onto poor-ish whites. Much higher costs and higher deductibles.

    By the way, it would be interesting to see Obama’s tax returns (not to mention Harvard transcript), given that he went from near-penury to massive estate in Martha’s Vineyard in just a couple of years. How did he do it, more precisely? Did he even hold any 20-minute million dollar speeches for this, or was it just straight-up fat envelopes from well-wishers?

  86. @inertial

    Erm, no. That was ten years ago 😀

  87. @International Jew

    I hear the Italians are tooling up for that …

  88. And the part about the end of shareholder capitalism ???

  89. Art Deco says:
    @Jimi

    The Federal Reserve Bank of Boston published a poorly constructed study a generation ago claiming discrimination in lending, based on a bivariate relationship between income and loan approvals. It was pointed out that they didn’t bother to include assets and credit history as a variable. Thomas Sowell pointed out that your could do a more complex regression analysis or you could take not of a datum they did admit to: that the default rates were the same in the two subpopulations.

  90. Art Deco says:
    @Almost Missouri

    Medicaid, as part of LBJ’s Great Society program to “have those n*ggers voting Democratic for 200 years” was meant disproportionately to help blacks at the expense of whites.

    Medicaid pays for nursing home care for people without attachable assets and for medical care for people in the bottom 30% of the income distribution who aren’t working or work for a company that does not provide medical insurance. Blacks are more likely to be in the bottom 30%. Any sort of socialization of costs will benefit blacks ‘disproportionately’ unless the eligibility criteria are jiggered to favor demographic subsets wherein blacks are comparatively thin on the ground. (For example, Social Security old age benefits).

  91. Anon[295] • Disclaimer says:

    AI and machine learning was supposed to be the answer … didn’t turn out as expected, so Federal Credit is plan B.

  92. rashomoan says:

    Outlawing 20-inch rims might be more effective at reducing the wealth gap..

  93. @Mr. Anon

    Sanders was interviewed on NPR and seemed quite pleased that the Biden campain adopted almost all of his proposals.

    This move probably is the Biden campaign’s play for Bernie Bro votes. Not a bad move for his campaign at all.

  94. Bugg says:
    @Pericles

    “Son, decided I’m leaving your mom to gratify anonymous men at a glory hole at the Vince Lombardi Service Area off the New Jersey Turnpike. This should give you some excellent journalistic material.Got any baby wipes?”.

  95. @theMann

    It really is time to tell non-Whites to go to hell. Not another penny, not another iota of effort.

    YT is so bitchmade now I can’t envision this.

    Normies are beside themselves over the prospect that college football season might be canceled entirely.

    Normies are seriously discussing if DeSean Jackson’s comments are all that problematic.

    In the Ivy League, note the cuck response to Dreher’s criticism of the Princeton BIPOC list of demands:

    https://www.theamericanconservative.com/dreher/attempted-putsch-at-princeton/

  96. Let’s cut to the chase, shall we? What will Shaun King’s new Leftist credit score be? How ’bout Rachel Dolezal?

  97. @Almost Missouri

    Oh, I dunno about that, A. M.

    Mr. Wu’s a window cleaner now . . .

  98. Jack D says:
    @International Jew

    Right, except that Quaker Oats (BTW, isn’t using a Quaker as your trademark some kind of demeaning stereotype and what about “Scotch” tape?) isn’t going to stop selling Aunt Jemima pancake mix/syrup/etc., they are just going to give it some non-racist name and image like Oprah Pancake Mix. The credit bureaus aren’t going to just close up shop.

    My prediction would be that, if this really goes forward, instead of (or in addition to ) a Federal credit bureau there would be “non-racist” standards for credit bureaus written into the law and any lender could utilize the services of a private credit bureau so long as that bureau met the Federal standards for “non-racism”. Probably the threat of a Federal credit bureau putting them out of business is just a stick to beat the private credit bureaus into this “compromise”. The socialists of America have found that in general it works better to have private companies operate in accordance with socialist mandates than it is to have outright government ownership.

  99. @Justvisiting

    Is Joe Biden so stupid as to believe that the inclusion of rent and/or utility bills will make black credit scores go up?

    Does he really think that a MORE rigorous and all-encompassing look at monthly financial obligations (payments of debt) will IMPROVE credit ratings for blacks?

    Where’s the evidence for that?

    (And who will he blame if his plan makes things worse for blacks?)

  100. @Anonymous

    No, immigrants and their children are subsidized, not subsidizers.

  101. @216

    There is nothing more American than a racist ethnostate, it’s literally what America was when it was founded

  102. @Anonymous

    The white lady in the sweater. She’s what is known as a “slow learner”.

  103. @Pericles

    Inspired by his rabbi father’s late coming out as a gay man

    Those Reform Jews, I tell ya. No respect for tradition

  104. @Anonymous

    Just like stagecoaches in days gone by, these Amazon trucks are going to need secondary riders armed with shotguns. Gonna play hob with Jeff Bezos’ bottom line, having to pay for armed security, not even considering the legal costs. What a fuckin’ shame that virtue signaler Jeffie will need to deal with this, and this in addition to his being personally threatened with guillotining and all. My heart bleeds for him.

    And I bet that this sort of flashmob behavior will drive even more Whites and Asians to leave the cities. Particularly if it gets organized enough that they develop spotters to report when trucks leave the fulfillment centers. Your Amazon Prime won’t mean shit.

  105. @Anonymous

    Also, it was a nice touch when the blonde, White lady trying to intercede got coldcocked by one of the mob members. The Knockout Game with benefits in loot. Whoo hoo.

  106. Anonymous[387] • Disclaimer says:
    @J.Ross

    Consider the failure of the latest attempt to establish an alternative payment processing system after MasterCard refused to recognize it.

    Can you please give the name of this alternative payment system?

    • Replies: @J.Ross
  107. Anonymous[387] • Disclaimer says:

    The federally-backed credit bureau would be required to ensure that credit scoring was not discriminatory

    For my money, the real question for me in all of this is: has a legal precedent been set in the US that establishes it is illegal to self-identify as black?

    After all, if race is “merely a social construct,” as leftists so persistently claim, there shouldn’t be anything to stop people from moving back and forth between all of the different “social constructs,” should there?

    (Was it Descartes who said, “I think I am Jamaican, therefore I am”?)

  108. @Anonymous

    Best to have him cancelled then, along with Solzhenitsyn. What can we possibly learn from these capitalist imperialist running dogs?

  109. Anonymous[387] • Disclaimer says:
    @notsaying

    And I thought then well they would help if your payments were always current but could make you worse off if you fell behind.

    That is precisely the idea: to leave people worse off with this scheme, and the worse the better.

    The credit card companies do not make money from the people who pay off their cards every month. Rather, their money is made from those who carry a balance from month to month. It is only those cardholders who carry a balance that the card companies can take advantage of at will because once you revolve a balance on a card, you are stuck.

    Of course, the higher a balance you revolve, the less likely the card companies are to see their money in full, since credit cards are unsecured credit. However, while it is true that the card companies run a higher risk with revolvers, the steadily-sinking credit scores of the revolvers help to justify the card companies raising interest rates, charging “late fees,” and so forth.

    So while the card companies may whine about all the money they lose on defaulting debtors, the math tells a quite different story: by the time these debtors do default, they have paid many times the amount of the original debt in interest and fees.

    The bottom line is that the card companies end up making the most money with their “sub-prime” products (i.e. cards and services aimed at people in financial trouble). Put differently, the credit card companies are all about making credit harder to get, not easier. A high credit score, after all, means you are able to pick and choose because a high score tells the card companies they need you more than you need them.

    The bastard who cooked up this scheme to ostensibly “help” the lower classes is really quite clever. Just as you pointed out, the kind of person likely to fall behind with paying their utility bills is exactly the kind of person who is desperately in need of credit. The card companies know this and doubtless look forward to “helping” all of these low-income people to within an inch of their lives.

    Anyone hitherto under the impression that the people controlling Biden weren’t going to start tugging his strings in earnest until after the election can stop waiting around: they are doing it right now.

  110. J.Ross says:
    @Anonymous

    I’m not making fun of you but it was called “New Project 2.”

    • Replies: @Anonymous
  111. Anonymous[387] • Disclaimer says:
    @J.Ross

    I’m not making fun of you but it was called “New Project 2.”

    That is quite all right; no offence taken.

    Ah, here we are:

    https://reclaimthenet.org/dick-masterson-new-project-2-mastercard/

    It seems he was accused of “violation of standards.” Which standards, exactly? MasterCard doesn’t say. Nor do they have to: they are a law unto themselves.

    Thank you for taking the time to post the name. I don’t think I really understood how these things worked before reading that site, but I do now. Anyone can start a website, it seems, they just can’t fund it because the payment processors will refuse them service. Clever.

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