Black and blue
For Aspiring Black Homeowners, the Recession Is Still Very Real
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  • Andrew Allison

    Oh, please. Six years on, the “Great Recession” (note to the TAI editorial staff: America represents the combined continental landmasses of North America and South America) is actively destroying the wealth of the middle class, the wealth transfer scheme known as Obamacare being just one example. The subprime lending crisis was brought about by government encouragement to lend money to people who had no hope of repaying it. The reasoning behind the article is nonsensical. As noted, whites were four times more likely to be granted a “liar’s loan” than blacks. How, exactly, were blacks disadvantaged by being prevented from taking on obligations which they could not fulfill?

  • Jacksonian_Libertarian

    We are 6 years into Great Depression 2.0, this is what happens in a depression. Lending dries up, as lenders only want to lend to the most credit worthy, and no one wants to borrow when their wages are falling and they can’t service the debt they are already carrying. Despite the Fed’s printing of trillions of dollars over the past 6 years, the M3 measure of the money supply hasn’t grown. This means all of that money was used to pay off existing debt and there’s still a huge burden of debt crushing the economy.

    There is a solution but it requires that the powers that be recognize that this isn’t “The Great Recession” it’s “The Great Depression 2.0”. The way to fight Deflation is with Inflation, and the way the Fed could do this is by Paying Off all the foreign holders of US Treasuries (~ $6 Trillion). This would stick it to all those Countries that have been manipulating their own currencies to give their exporters a price advantage over American exporters, buy purchasing US Treasuries with the Dollars they cheated to get. This would devalue the Dollar on world markets giving American exporters a price advantage for the first time in decades, while at the same time raising the price of imports, which would result in a Trade Surplus for the 1st time in many decades. With the US economy once again Rocking, with Inflation once again making lending possible, the American economy would once again be an engine for World economic growth.

    • Andrew Allison

      You raise valid points but, with respect, the thrust of the post was the nonsensical proposition that in the run-up to GD 2.0 the Black middle class was targeted when, in fact, it was largely white borrowers who got hosed.

      • Pete

        White taxpayers and savers got hosed.

        • Anthony

          It’s very important, really important when we level charges that we recognize and understand how much we don’t understand – if we’re going to assess and apportion rather than work to make America whole.

          • Tom

            Sometimes you gotta do the former before you can do the latter.

          • Anthony

            Agreed but prudence ought to guide in both instances.

  • FriendlyGoat

    This is one of those articles at TAI where the authors appear to be less rigidly conservative and libertarian than many of the readers who regularly comment.

    With respect to the financial crisis, we now know that Ben Bernanke was determined to not let very many institutions go down, because of his studies of the depression of the 30’s. I have always wondered, as we funneled money to corporations, why we could not have funneled money to them by the Fed actually assisting with all mortgage payments in the country. Then the mortgage-backed bonds would not have become “toxic” or worthless, the banks and guarantors such as AIG would not have been imperiled, the house values would not have dipped as precipitously, a lot of foreclosures would have been avoided, and any money not spent by individuals on mortgage payments would have been spent elsewhere in the economy.

    I mean, we were printing money from nothing ANYWAY. Why did we not rescue the institutions by rescuing the people who owed the institutions money? Is there some law of nature that makes people so angry at government largess that they (we) yell until ONLY the corporations get it?

    “By gum, it’s not right for the government to give people money!!!!!” Why is it more right for the government to give corporations money in a fog of confusion the average voter cannot and did not comprehend?

    • Andrew Allison

      Nope, this is one of those articles on TAI written by an intern whose critical thinking skills leave something to be desired. As noted below, the thesis is stupid. Furthermore, the fact that most of the readers who regularly comment express views different from yours does not make them “rigidly conservative and libertarian”. Might I gently suggest that perhaps, since your views are so discordant with most of those who comment here, you are in the wrong place.

      • FriendlyGoat

        Actually, I like TAI for its subtle attempts to be balanced, even when apparently written for a far-right audience. Its “interns” apparently have permission from the owners/editors to say things not necessarily in line with America’s Tea Party. Curiously, I’m surprised they haven’t driven YOU GUYS away to a more palatable diet of George Will (or something).

        • Andrew Allison

          If you think TAI is written for a far-right audience you either haven’t been paying attention or are out in (far-) left field.

          • FriendlyGoat

            This site was recommended (to me) by another outfit so ridiculously conservative that their positions are comical, The Independent Women’s Forum (supported, in part, by donations from Rush Limbaugh).

            As for me, OF COURSE I am out in far (FAR) left field. That’s what happens when one grows up (decades ago) in a county that still just went 73% for Romney, but since realizes that so much of what we were taught was complete baloney.

          • Tom

            Andrew, remember your advice dealing with the Russians?

          • Andrew Allison

            Touche! LOL

  • Tom

    However you want to play this, what’s pretty obvious is that the laws that basically required bankers to lend to people they considered bad credit risks were solving the wrong problem.

    • Tom

      By which I mean: Instead of telling the bankers: “Use race or location in your loan assessments and we’ll have your guts for garters,” the bankers were told: “lend to more minorities.”

      • Pete

        Exactly — the Clinton Administration, with its obsession for race, began it all by putting a gun to the head of the banks requiring them to issue mortgages to unqualified Negroes.

        • Anthony

          Check the facts my man before you slander good Americans of long standing. By the way, Sibir_Rus has historical photo of one structural obstacle your Negroes endure @ Cry Havoc, and let slip the Lawyers of war (a TAI Feed).

          • Andrew Allison
          • Anthony

            You insist in involving yourself in matters that you know very little about; the Atlantic piece is not only an article written years ago but is not relevant to facts ascribed to. Moreover, reams of material written by experts on 2008 financial collapse exits. Not internet articles limited to journalist interest. Please, check some primary sources and remember we should…

          • Andrew Allison
          • Anthony

            Primary sources, well researched by people in field matters in serious circumstances; Magazine articles have their place but…choose to believe what you must.

          • Fred

            As usual, smug, self-righteous bombast with zero argument, evidence, or citation to back it up. I’m no expert on the financial crisis, but I have read several scholarly and journalistic books on the subject (to wit: Global Financial Contagion, Shalendra Sharma; Paper Promises: Debt, Money, and the New World Order, Phillip Coggan; Guaranteed to Fail: Fannie, Freddie, and the Debacle of Mortgage Finance, Viral Achayara et. al.; Busted: Life Inside the Great Mortgage Meltdown, Edmund Andrews; The Financial Crash of 2007-2010, Johan A. Lybeck; and The Financial Crisis Inquiry Report: Final Report on the Causes of the Financial and Economic Crisis in the United States). Left, right, and center, the consensus is that government policies that encouraged and occasionally pressured, even forced, bankers to make risky loans, while not the sole cause of the crisis, played a large role in it. If you disagree with that assessment, I await with bated breath your specific argument and/or evidence to the contrary. However, I doubt it
            will ever come because I doubt you have any. You will, of course, try to hide that fact by dismissing me and telling me to “move on” (I only saw your comment today). But you’re not fooling anyone. You are a bullshitting blowhard.

          • Anthony

            Look who’s back (anonymous web attacker returns after 120 hours away)! Those deadly triggers are life long motivators unless honestly addressed. By the way, who’s writing this as I know there are multiple writers under this pen name. Suffice it to say that I (and I am sure a few other TAI readers) would know what to make of your personal charges if you actually wrote (or whoever writes this …) to both essays and Feed pieces – regularly and without intervals of hours and days. One more observation, your triggers appear to have more commonality with Sharpton and Jackson. You (or whoever writes) ought post with them as like ought to seek its own kind (BS unlimited).

        • Tom

          Your final noun needs replacing. Unqualified PEOPLE.

          • Andrew Allison

            As does yours ;<)}

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