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Of course, who can remember George W. Bush’s push in 2002 to 2004 to increase black and brown homeownership by 5.5 million households by 2010?

How’d that work out anyway?

 
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  1. TWS says:

    That’s a bold strategy Cotton.

    • Replies: @Bubba
  2. dearieme says:

    That nice Cherokee lady is proving to be a bit of a disappointment. She should retire gracefully to her teepee.

  3. Spangel says:

    In theory, getting people homes and off section 8 vouchers isn’t necessarily a long term cost to this country. However, even if given houses fully paid, what happens when the owners borrow against their home value to buy cadillacs and bling to the point where they are out of their homes and need housing assistance again?

    • Replies: @bomag
    , @Jim bob Lassiter
  4. Zoodles says:

    Whats with the obsession with home ownership anyways?

  5. “The gap between black homeownership rates and white homeownership rates are actually higher today than when housing discrimination was legal.”
    We all know from Hume the impossibility of establishing causality. But to illustrate this he uses the example of a billiard ball striking another. Because the collision and movement of the second ball are so tightly chronologically coupled we intuit a cause.
    Causes related to “the gap” function differently. Dim Mak, or “The Five Point Palm Exploding Heart Technique” does not cause any effect immediately, but after a delay of some period the victim falls dead. I submit the black community suffers from this Dim Mak causality, where the effects of impediments do not manifest at the time they are being applied, but actually accelerate over time and distance from the occurence. After the removal of shackles, the man actually becomes less strong and free than when previously shackled, this anomaly proving the seriousness of these pernicious Dim Mak shackles.

  6. @Zoodles

    People think that’s the only way to build long-term wealth that your kids can inherit. You know what they say about land… they’re not making any more of it.
    Foreigners agree, as you see them coming in to buy up Southern CA real estate as a way to keep their money they earned back in the old country. Who wants to invest in a home in the Philippines or India or Russia?

    Anyway it’s a good strategy for wealth-building, but it takes lots of hard work and sacrifice. Just jumping into home ownership without the saving and planning will mean a quick bust. Not only do you need a steady job, you need to be reliably employable in case of an economic downturn. Then there’s taxes, insurance, maintenance, utilities. You can see why it’s not a good choice for people who live paycheck to paycheck, or who find themselves moving around to follow work.

    I wish someone would explain all this to Democrats. It’s just so much common sense that they can’t accept.

  7. @Zoodles

    There is a well known result that communities with many homeowners are better than communities made up of renters (cleaner, healthier etc.). Therefore making renters into owners will improve the community. As it turns out though, giving an irresponsible person a house doesn’t transform him into a responsible person.

    • Replies: @GermanReader2
  8. Forbes says:

    Gee, why get my spending impulse under control, and defer my instant gratification, when politicians like Liz Warren will make a home ownership down payment on my behalf?

    Saving part of my paycheck, scrimping on my spending habits, and making a long-term investment in my future by buying a home sounds just like Obama’s critique of Mitt Romney–the ’80s are calling for a return of an outdated policy. There are more important issues to worry about–like redlining from the 1930s…

    Free money sounds good to me. What could go wrong…

  9. George W. Bush’s plan to increase minority home ownership failed because of Wall Street and the fact he was in charge. Nothing to do with inability to save a down payment or the desire to build (and own) houses that take more than the median national income to afford.

  10. guest says:

    Concepts like redlining I imagine in my head as a scribe in the Harvard Ivory Tower jotting something down off the top of his head, crumpling it up, and tossing it out the window. Far below lies a pile of trash ideas being picked through by journalist rodents. One happens upon the redlining crumple, consumes it, and makes its way back to its rathole.

    Sometime later, it bites a person and the redlining concept gets transmitted like the plague. Now we all have the stupid word in our heads.

  11. @stillCARealist

    You know what they say about land… they’re not making any more of it.

    Of course, they made plenty the first time, so this shouldn’t be taken as a sign that prices will always increase.

    As for Pocahontas, I’m sure she will also repeal the laws of economics. Otherwise prices will rise to capture the subsidy.

  12. trelane says:

    She was born in the wagon of a traveling show….

    • Replies: @Lot
  13. “Formerly redlined neighborhoods . . .”

    Yeah, as in 1936.

    Is there any living person who didn’t get a mortgage because his neighborhood was actually “redlined” by the government? Just curious.

    • Replies: @International Jew
  14. @Zoodles

    Magic Home Ownership.

    But with no down payment, it’s the same as renting until they trash it or get tired of it.

  15. Black AND brown?

    I don’t recall enslaving Mexicans, and the Chinese don’t need it, since most Chinese families have responsible fathers willing to support their kids. Not poor black kids!

    If I were a black working in the industrial reparations complex, I’d be crawling up Pocahontas’ wrinkly ass over that distinction. Every brownie getting a home down payment means one less black gets a home down payment.

    Mexicans done run blacks straight outta Compton, South Central, and even Inglewood already, and now ya’ll finna give them free down-payments to run us out of Atlanta?, too?!

    Eff ya’ll, fake-azz Indian bamboozlin’ BYAAAATCH!!

    Even Tiny Duck ain’t that dam stoopid!

  16. Anon[261] • Disclaimer says:

    However obvious it might seem, from what I’ve read most economists don’t put much of the blame for the great recession on relaxed home loan requirements.

    • Replies: @Craig Nelsen
  17. Lot says:

    “Redlining” meant banks should not lend in areas with high chances of default. Most such areas were white majority.

    Had banks lent there, default rates and interest rates would have been higher for everyone. Or there may not have even been a mortgage market.

    Happy the Dems are focusing on reparations and telling white people their success is based on oppression, not their own efforts, and they are personally financially responsible for black poverty.

    I don’t know if this will be enough for MN to go to the GOP in 2020. But it’s a safe bet by 2024.

  18. Rayjay says:
    @Zoodles

    Whats with the obsession with home ownership anyways?

    Same reason we have social security. Because too many Americans are literally too stupid, too impetuous, or too timid to invest their money conservatively, so owning a house helps to ensure they have some money around at retirement.

    Example: Let’s say you bought just a thousand shares of Apple, back in 1995, when it was around $20 a share, and rented an apartment all that time until now. Since Apple has split its stock a few times since then, and delivers dividends, you’d be sitting very pretty for a nice retirement egg right now, while collecting nice quarterly dividends–and never having to deal with house management, mortgages, insurance, HOA fees, etc.

    That’s a very simple, straightforward example.

    To folks who say they don’t want to pay rent… homeowners pay a shitload of rent. They’re renting money from the bank to buy the fricking house, while paying for everything else to support the house. It’s called “interest,” and you pay a lot of it, while being stuck with the house.

    Now ask yourself, do you think most black people have the ability to deal with a stock market investment, or any other fiscal strategy that requires some intelligence, due diligence, and patience?

    Frankly, most aren’t even mentally qualified to manage one house. Homeownership is not for everybody. As any homeowner with half a brain knows, if you don’t address issues in a timely manner, you can lose the house! How likely are they to address issues if the gubmint is making it easy to get in over their heads at the get-go?

    No matter who you are, if you don’t have all your skin in the game, you don’t play it the same.

    That’s why Elizabeth Warren is Evil.

    She’s playing black and Mexican voters for fools, to her own ends, and most of them will cooperate.

  19. looks like the wall didn’t work that well, judging by the current state of detroit.

    what blathering morons and hysterical women the democrats are today. what a bunch of total idiots.

  20. @Hypnotoad666

    Redlining was a favor to blacks, because wherever they lived (in the 30s, 40s,…) the course of real estate values was down down down. Buying a house in a black neighborhood was no way to “build wealth”, it was a way to destroy wealth.

    • Replies: @Duke84
  21. trelane says:
    @Lot

    🎵 I was born in a leafy suburb to professional parents, got a B.S. and J.D, claim to be an American Indian, preach a little gospel sell a couple of bottles of Dr. Good. 🎵

    • Replies: @Cortes
  22. africans wreck houses. that’s what i learned in my town growing up. you can literally walk around and see the damage they do to houses that were in good condition 20 years ago. seen plenty of houses that had their value reduced to $80,000 or even $60,000 after africans lived there.

    here’s the process. africans move in, wreck house, leave in 2 or 3 years. contractors, NONE OF THEM AFRICAN, show up later and rebuild the house. this pattern is as reliable as the sun coming up in the morning. i’ve literally never seen an african on any of the rebuild crews.

    there’s houses in my town that were built 60 years ago that were fine for 50 years, then over the last 10 years were either burned to the ground, and are sitting there wrecked, or were demolished after being burned down, and now there’s an empty lot. and africans were the ones who did it, every time.

    they’re like this wave or hurricane that destroys property.

    the ones that live in the house next to my parent’s old home had to be evicted, and the house had to be gutted and rebuilt. they did zero upkeep for 8 years and there were literally trees growing in the gutters and on the roof. they did not cut the grass for 2 years, and the city finally cited them, after being super reluctant to cite them for anything, for obvious reasons. the son was small time criminal always in and out of jail and overdosed on heroin 5 or 6 years ago.

    the entire thing was like Falling Down with Michael Douglas, watching your neighborhood turn over in a 30 year time frame, from a well run middle class town into this modern USA nightmare of random section 8 africans and new third world immigrants.

    • Replies: @ThreeCranes
  23. My housing plan creates a first-of-its-kind down-payment assistance program to help Black and Brown families. . .

    I smell a campaign slogan: “Free Green for Browns!”

    Warren should trademark it before one of the other Dems does. It works equally for all of them.

    • LOL: Johann Ricke
  24. Anon[178] • Disclaimer says:

    She doesn’t realize that as long as she talks about how blacks can’t get a house, this isn’t going over well with white Millennials, who have a very low rate of home ownership. If Warren and the Democrats try to screw over white Millennials by raising their taxes just to give nice things to blacks that white Millennials can’t afford, the more the Millennials will notice this is unfair, and say to heck with the Democrats, and vote Trump.

    White Millennials are one of the biggest voting blocs out there, and they aren’t doing so hot financially, and ignoring their economic plight will kill your political career fast.

    • Replies: @M_Young
  25. @dearieme

    Yeah, maybe, if she was Cherokee and if Cherokees had teepees…..

  26. @Rayjay

    “To folks who say they don’t want to pay rent… homeowners pay a shitload of rent. They’re renting money from the bank to buy the fricking house, while paying for everything else to support the house. It’s called “interest,” and you pay a lot of it, while being stuck with the house.”

    True, and there’s also the fact that once the house is paid off, you pay “rent” in the form of taxes to the local taxing authority, which will take your house and sell it if you miss enough payments, just as the mortgage holder would have done. Nobody actually owns a house or land anymore, except the ones who levy taxes on real estate.

    • Agree: Achmed E. Newman
  27. Duke84 says:
    @International Jew

    Paul Kersey calls it the black hand of economics.

  28. M_Young says:
    @Anon

    “She doesn’t realize that as long as she talks about how blacks can’t get a house, this isn’t going over well with white Millennials, who have a very low rate of home ownership.”

    She’s buying off the Millennials with the student loan forgiveness thing. Her policies are a perfect pitch for the high-low coalition that the modern Dems are.

  29. @Rayjay

    To folks who say they don’t want to pay rent… homeowners pay a shitload of rent. They’re renting money from the bank to buy the fricking house, while paying for everything else to support the house. It’s called “interest,” and you pay a lot of it, while being stuck with the house.

    Adam also fails to mention that at any moment, the government could move feral, section-apre trash into your neighborhood and destroy any equity you’ve built up.

    Home ownership is the biggest scam in this country. You’d be better off spending your money in a Vegas casino.

    • Replies: @Reg Cæsar
  30. I’ve not seen it mentioned on this blog, but the polls are showing a steady improvement for the good senator such that she’s virtually catching or caught sanders generally and the state by state polls show that in some larger early voting states (CA, MA) she’s competitive with Biden. A campaign with a lot of (granted, expensive and misguided) policy probably appeals to certain kinds of democratic voters.

  31. @Larry, San Francisco

    A lot of leftwing policies today are supported by bad research from the social sciences. Usually, the fundamental flaw is confusing correlation with causation (like for instance the findings about the “school-to-prison-pipeline”.

    • Replies: @MarkinLA
  32. My housing plan creates a first-of-its-kind down-payment assistance program to help Black and Brown families living in formerly redlined neighborhoods buy a home.

    My guess is that this doesn’t include her own.

    • Replies: @Justvisiting
  33. @Ray Huffman

    Adam also fails to mention that at any moment, the government could move feral, section-apre trash into your neighborhood and destroy any equity you’ve built up.

    Or, as Mrs Kelo learned the hard way, simply take that house away.

    Though citizens are safe from the government in their homes, the homes themselves are not.
    –Clarence Thomas in dissent

    • Agree: bomag
  34. Cortes says:
    @trelane

    Better than the original.

  35. @Rayjay

    Part of the reason for Social Security is the fact some people have too low of an income to save much. And, more importantly in 1935 than now, family that could support a disabled or elderly person.

  36. LondonBob says:
    @stillCARealist

    Most countries sensibly have restrictions on foreigners buying property, Anglo-Saxon countries have been naive in this respect.

    Property is popular as, if you are comfortable with usury, you can borrow cheaply on it and the generally reliable income you derive from it can pay back the loan. Good reason property is so popular with Jewish investors. Unless you buy at the peak it is very safe. That said I prefer the challenge of the market, but that requires a lot of knowledge and a fair bit of intelligence.

    • Replies: @stillCARealist
  37. bomag says:
    @Spangel

    In theory, getting people homes and off section 8 vouchers isn’t necessarily a long term cost to this country.

    In my experience, the rent from section 8 barely covers the maintenance costs. These people are consumers of housing; they are subsidized people; they are costly to have around.

    • Replies: @ThreeCranes
  38. @Spangel

    They destroy even houses that the ostensibly have equity in; they destroy property values in a 1/2 mile radius.

  39. Some great points in this thread about the true costs of home ownership and what that really means in today’s USSA.

    However, let’s talk about all the ongoing maintenance costs that also come with home ownership. There are predictable ones like lawn care, cleaning the gutters, snow removal, etc. that add up to regular, substantial cash outflow.

    Then, there are also the unplanned costs like failed basement sump pumps, burst pipes, failed major appliances, trees failing on the roof, vermin infestations, etc. Some of these disasters easily cost as much as a nice, lightly used, well-optioned, off-lease SUV, say a 2017 Kia Sportage with 15k miles. How many typical Americans have that kind of cash laying around these days?

    • Replies: @Diversity Heretic
  40. Let’s rephrase this: “Somehow, black Americans escaped the financialization-driven asset inflation of housing prices that makes paying for a place to live so difficult for young white Americans. Why, in Detroit within the past 15 years it was possible to buy a house for less than the annual income resulting from a minimum wage job! The banking industry has had to use usurious credit card rates and payday loans to extract interest from black America, and I want to do all I can to guarantee a more reliable interest income to the bankers.”

  41. @Junior Brown

    Why do you think this will be a zero sum game for vibrants?

    Once the Dems control the Fed printing press they will just ctrl-P all the cash into existence.

  42. @Reg Cæsar

    My housing plan creates a first-of-its-kind down-payment assistance program to help Black and Brown families living in formerly redlined neighborhoods buy a home.

    Hilarious.

    .gov down payment assistance programs targeting minorities have been a dime a dozen for the last fifty years.

    They were a major contributor to the Panic of 2008 (when the “down payment assisted” mortgage securities were traded on the open market like used toilet paper).

    Typical over the hill slut–“Let’s do it again!”

  43. Mr. Anon says:

    America needs to face the things we’ve done wrong and take steps towards making it right. My housing plan creates a first-of-its-kind down-payment assistance program to help Black and Brown families living in formerly redlined neighborhoods buy a home. pic.twitter.com/WL9FXFTHLh

    — Elizabeth Warren (@ewarren) June 20, 2019

    This message paid for by the National Association of Mortgage Brokers

  44. Mr. Anon says:

    You don’t need a down payment to buy a house. You can get an 80/20 mortgage. You’ll get a higher interest rate than if you put money down, but it significantly reduces the amount of money you have to pay up front. All you have to come up with are the fees and other closing costs. Does Chief Sipping Beer not know this? Or is she proposing that the Government should cover those too? Hell, maybe the government can pay for the first few years of lawn-care as well.

    • Replies: @MarkinLA
  45. Flip says:
    @dearieme

    I actually think she’s going to be the next president. The progressives will accept her, unlike Biden.

  46. Noman says:

    William Jefferson Clinton and the CRA. (Community Reinvestment Act)

    Banks were required to make loans to people with no means nor intentions to pay the loans off.

    The Banks went along and received the repeal of Glass-Steagall in return.

    • Agree: Jim Don Bob
    • Replies: @MarkinLA
  47. @bomag

    “they are costly to have around”

    The plain unvarnished truth. The Alpha and the Omega of white/black relations.

  48. @stillCARealist

    “Then there’s taxes, insurance, maintenance, utilities. You can see why it’s not a good choice for people who live paycheck to paycheck, or who find themselves moving around to follow work….I wish someone would explain all this to Democrats. It’s just so much common sense that they can’t accept.”

    Words of wisdom.

    Owning a home is a very expensive proposition. One either needs lots of time or money to maintain a home. Even with time on his hands, a black man would need a black woman wife/partner to work full time to bring in enough money to pay for all the raw materials: paint, paint brushes and rollers, solvents, sandpaper, caulk, ladders, buckets, sponges, brushes, lawnmower, string trimmer, shears, machete, axe, sharpening tools, rakes, shovels, hoes, brooms, dust pans, mops, circular saw and jig saw, hammer, drill and bits small and large, sanders, grinders with diverse wheels, plumbing tools, cold chisels and so on.

    And that’s if he wants to save money by not hiring the work out. Assumed too is that he has enough intelligence and experience to figure out what’s wrong and how to fix it, which generally means consulting a how-to book i.e. reading with some level of competence and comprehension. (Hah! Good luck with that!)

    Now let’s talk about the automobile, as big as if not a bigger expense than owning a home.

    Okay, let’s not. You get the picture.

    There are very few black men in America with the wherewithal to properly take care of a house and car. Not to mention motivation, which thins the herd of prospective candidates down considerably to begin with.

    The simple truth is, is that blacks don’t own homes because they don’t want to. Home ownership is work! And that doesn’t go down well with black males, who, like their African forebears and contemporary brethren, find work irksome because it interferes with their playtime/partytime: drugs, booze and beeeeitches.

    • Replies: @anonymous
  49. “Of course, who can remember George W. Bush’s push in 2002 to 2004 to increase black and brown homeownership by 5.5 million households by 2010?”

    Speaking of which, whatever happened to Barney Frank?

  50. It’s disgusting that someone would lie about their race to benefit from our race based spoils system only to turn around and attack whites for their “privilege” once they make it to the top of the heap.

  51. @prime noticer

    “after being burned down, and now there’s an empty lot. and africans were the ones who did it, every time”

    If we believed in and lived the Tao, we would stop meddling, accept the situation as it is and leave them alone to rebuild whatever shelters they find habitable on those lots. If they build wattle and daub mud or cylindrical reed huts then so be it. That’s what they’re comfortable with. That’s where Entropy/Tao has led them. If they dig a community well and prefer that to whatever arrangement they formerly had with a municipal water supplier, then let them.

    Let’s stop being Protestants and fighting the Way of the Universe. Doing so will only wear us out. This is why we’re “losing”. Because in believing that we can uplift the black race, we have set before us an impossible task. They don’t want to be uplifted, they want to be left alone. For once, let’s agree with them.

  52. @LondonBob

    We have certainly borrowed from the equity in our home, and even used to trade up to a nicer home. But that wouldn’t have worked at all if we didn’t have a good, steady income from a long-time business.

    See, that’s what’s so frustrating about all this. They want loans to go to people who are a bad risk for paying the mortgage every month for years. Renting is a much better option for people with a bad credit rating. Have you ever done credit checks on people? It’s quite eye-opening. We had quite a few done on potential renters back in the early aughts, and let me tell you, the folks renting cheap homes have TERRIBLE credit. Student loans, credit card debt, personal loans, re-possessed vehicles, re-possessed boats, medical debt, behind on the taxes, missed payments all over the place. I was shocked when I saw this. Why would the credit card companies give you more cards when you have so much debt unpaid on others? Why would you buy a boat when you owe so much on your car? Don’t get me started on student loans.

    • Replies: @LondonBob
    , @Rayjay
  53. MarkinLA says:
    @GermanReader2

    bad research from the social sciences

    Is there any other kind?

    • LOL: Unladen Swallow
  54. MarkinLA says:
    @Mr. Anon

    FHA loans have next to nothing for down payments. In California there is a program where the state pays the down payment and takes a second on it. This is how California wastes it’s current “surplus”. If the bottom drops out, those seconds will be worthless.

  55. MarkinLA says:
    @Noman

    The CRA predates Clinton and NOBODY was required to make bad loans. They did it because Wall Street bought them almost as soon as they were funded.

  56. @Anon

    You don’t get a job as an economist dealing with things like “obvious” and “reality”. You make the big bucks by rendering an economic phenomenon–however obvious–opaque and flexible enough to produce a result that will please the guy who is signing your checks.

  57. LondonBob says:
    @stillCARealist

    Know a couple who had a photography firm, the advent of digital photography just killed their business so they were absolutely stuck what to do given they were in their forties. Fortunately for them they inherited some money from their parents and invested it in premium London property. Made an absolute fortune. Of course the past fifteen years have been very good for London property, that said gold has outperformed property, but it doesn’t derive an income.

  58. Rayjay says:
    @stillCARealist

    See, that’s what’s so frustrating about all this. They want loans to go to people who are a bad risk for paying the mortgage every month for years. Renting is a much better option for people with a bad credit rating. Have you ever done credit checks on people? It’s quite eye-opening.

    As a landlord, I laugh about “redlining.” It’s easy to redline black folks. 9 out of 10 times their credit score is comical.

    I had a friend who was a landlord, fretting about advertising a vacancy in a local paper:

    “I”m worried about advertising in that paper, because black people will see it and show up to apply.”

    “So what?”

    “Well, if I don’t rent to them, I could get sued for discrimination.”

    “No, because you have their credit report, and it will suck ass. Case closed.”

    “But what if they have a great report? What if it’s the best?”

    “Then rent to them because it means they’re responsible. That means they’ve assimilated into modern American life. They aren’t the negroes you’re looking out for.”

    “How can I be sure?”

    “You can’t be a typical American black, with a great credit score. Their culture, de facto, can’t support it. Only if they break off, and assimilate to Western European ways, can their credit score be great. So, if you find a black couple with a great credit score, grab ’em up. Rent to them. You’ll look progressive, without eating shit for it.”

    “Hmmmm…”

    “Indeed.”

  59. @The Wild Geese Howard

    I think the rule of thumb is to allocate 5% of the acquisition cost of the house per year for maintenance and repairs. If you figure that into your budget, you may find yourself buying a much less expensive property. It’s more than principal-interest-insurance-taxes!

  60. Duh of the Day, courtesy of LinkedIn. Like, you know, these two phenomena might be related…

    Baby Boomers make the most loyal workers, according to a report by employee- engagement platform Peakon. In a workforce where employees can span several generations, those in their mid-60s remain the most faithful to their companies, as well as the ones with the highest job satisfaction. At the other end of the spectrum, millennials “thought to be influenced more heavily by experiences and a sense of purpose,” are those who find the least amount of meaning in their work, and are least satisfied with their pay.

    Also: Despite laws protecting against age discrimination, the U.S. jobs report continues to show signs of bias in hiring; while young adults are most likely to be unemployed, older Americans are most likely to be stuck in long-term joblessness.

  61. anonymous[429] • Disclaimer says:
    @ThreeCranes

    The simple truth is, is that blacks don’t own homes because they don’t want to. Home ownership is work! And that doesn’t go down well with black males, who, like their African forebears and contemporary brethren, find work irksome because it interferes with their playtime/partytime: drugs, booze and beeeeitches.

    The logic is simple…

    “You can sleep in yo car… but you cain’t drive yo house…”

  62. @MarkinLA

    The CRA predates Clinton and NOBODY was required to make bad loans.

    True. But under BJC, if a bank wanted approval to merge with/acquire another bank, the price was a promise to make loans in disadvantaged areas. So it is a distinction without a difference.

    • Replies: @MarkinLA
  63. @Redneck farmer

    Which is why compared to this sham SJW proposal by Pocahontas (please do not cease calling her this, people), it would be relatively better to up the minimum wage a little, offer checks and/or tax credits if you have a high IQ and have more than 2 children, or offer a bit more in terms of healthcare/welfare policy that does not make people lazy. (For example, reopen sanitariums for crazies, force students to achieve good physical education, a cheap basic public option for the donut hole population that replaces the Obamacare convoluted mess, etc.)

  64. Out of idle curiosity – it would have been interesting to see the state of the lawn on the other side of the fence, for purposes of comparison.

  65. @MarkinLA

    It wasn’t a particularly big program until some Clintonites began complaining about how blacks were turned down for loans more than whites. The big increase in CRA began with the Clinton Administration, and continued with the Bush II administration.

    By the late 90s, the banks who wanted to grow had up the CRA loans significantly to placate the regulators approving mergers and acquisitions. The more banks merged, the more pressure there was on the remaining ones to merge or acquire, hence real estate bubble.

    • Replies: @MarkinLA
  66. MBlanc46 says:
    @Lot

    Hey, she put down F for “Sex”. In 1986 she actually thought that sex was a valid category and that she was one of them and not the other.

  67. MBlanc46 says:
    @Junior Brown

    It doesn’t have anything to do with slavery. It’s a matter of who Fauxcahontas needs to get to the polls and vote for her.

  68. Since we’ve seen this before, there’s no reason not to take advantage of it.

    Step 1: After this goes into effect, buy a house.
    Step 2: Wait for housing prices to go up to the point that they are ridiculous and you notice people are speculating.
    Step 3: Sell the house.
    Step 4: Profit.

  69. MarkinLA says:
    @Jim Don Bob

    The CRA only dealt with making loans in underserved areas. As long as you apply the same standards that you do in other places you are OK. The reason the loans were bad was because the loan originators didn’t care about normal lending standards because they sold them within a few weeks – well before the first payment was due and before the loan could ever be delinquent.

    This whole CRA bullshit, is libertarian invented drivel designed to blame the government for the bubble and bust when it was the free market that was the cause. NOBODY forced Wall Street to buy this crap and as a CEO of Citicorp said during a hearing on the bubble – “when the music is playing you dance”. Everybody was getting rich by making these crap loans, what more incentive does anybody need?

    This whole red-herring about banks merging is just another attempt at deflecting the blame. How many banks actually merged or were so concerned about it that they would wreck their balance sheets?

  70. MarkinLA says:
    @Unladen Swallow

    The bubble, like all bubbles, was the result of the so-called free market running off the rails because EVERYBODY was on the same side of the trade. It was no different than tulipmania and had NOTHING to do with the CRA or bank mergers.

    Wall Street bought every crap loan that banks, loan brokers, and mortgage companies funded. So naturally people stopped worrying about loan standards. Everybody was getting rich turning the money over as fast as they could. As long as Wall Street could sell it’s bonds backed by those loans the bubble could continue. This is why the loans got more and more stupid – to keep the ball rolling as long as possible.

    The idea that some bank would destroy it’s balance sheet and intentionally become insolvent so they could more easily merge with another bank is so ridiculous, it could only be something you might read at Lew Rockwell or Reason.com.

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