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Banks didn't 'target' anybody initially. In fact, before the end of the 1990s banks specifically refused to lend money to people who simply couldn't afford to pay off the mortgages. However, Clinton introduced the initiative for "affordable housing" for low income families, forcing Fannie Mae and Freddie Mac (effectively the US government) to insure subprime mortgages given to broke poor people as though they were AAA grade stellar "safe" mortgages.
Here is that fatal act: https://archives.hud.gov/news/1999/pr99-131.html
Now imagine if you're a bank: before you had to check to make sure people had enough assets, down payment, a stable job, etc. to make sure they had the ability to pay off the loan back to the bank. After the new rule, why do any due diligence if the US government assumes all of the responsibility? At the end of the day if the broke person doesn't pay and defaults on a loan, it doesn't matter since Fannie and Freddie will pay off the mortgage and give the money back to the bank.
Now imagine if you are a credit rating agency: Now instead of rating all these subprime mortgages as junk status, they magically became triple A safe investments on par with US government treasury bills (after all, the government now guarantees both), except that they have crazy high yields. So of course all of the money just flooded into the subprime market, since you got US government-backed "safe" bonds AND crazy high yields at the same time. The rest of the excesses and abuses such as predatory lending, fraud, creative financial engineering, etc. followed. But they were secondary factors after the fact and not the real trigger that started this whole party.
Opinion:
Correct...Banks were honest and upright until the Clinton initiative after mounting pressure by minority leaders.
That's when the flood gates opened. I witnessed empty storefronts open in very expensive neighborhoods as I watched
poorer folks walk in for loans thinking they can flip and grow their wealth as quickly as seen on T.V. Flip this house type of shows. Doesn't work that way for everybody. Predatory lending was a money maker beyond comprehension for fly by night mortgage lenders. Before Clinton housing policy It took me 25 years and two jobs to put down a deposit on my home and even then the bank refused me the loan until I showed proof of a paid off parking ticket. . I used my money......no one elses. The affordable housing act for low income folks almost ruined America. I repeat .....those foolish enough to risk their money ,or someone elses money are nothing but gamblers. Stop watching those flip realty shows and realize the only way to own a home for most people is too get out there and work and save. Buy the home. The sure way is to pay off the home and then use that home as leverage for future purchases. It is so wrong to use money that does not exist for the hopes that it will materialize down the road.................Bullcrap for most...........
No amount of politics is going to help minority youth not end up in prison. I don't understand why people can't get that this is an upbringing issue, not one related to policy! Being poor does not give people a free pass to crime - a lack of morality does. Morality and manners are learned at home.
Opinion:
Before Clinton housing policy It took me 25 years and two jobs to put down a deposit on my home and even then the bank refused me the loan until I showed proof of a paid off parking ticket. . I used my money......no one elses. The affordable housing act for low income folks almost ruined America.
Cannot stress this enough. It didn't take me 25 years to save but I starved myself (delayed gratification) in every possible way for close to a decade while saving to get far and well beyond that 20% requirement and I don't regret it at all. I watched too many acquaintances go sub-prime or FHA with low downpayments and pay ridiculously high mortgages they could barely afford with PMI, or put money on credit cards to do insane unnecessary renovations only to get screwed financially down the road (and sometimes not too far down the road).
It was hard work, sweat, frugality and stritct financial management that got me to this point and the buck doesn't stop here. Who knows what could happen to down the road. It could all go away in the blink of an eye due to unforseen circumstances, but I tread carefully and continue to work hard and save/invest as much as I can while working to pay off this mortgage as quick as possible.
Or sent blacks back to the south, most notably Atlanta. Lots of black folks from NYC live down there. I know of a few.
Another way of saying this is: A segment of the black community sensibly decided to pick up stakes and head out for greener pastures as have many other ethnicities before them.
Why is it that people who are always advocating in favor of black this and black that are the ones who make them sound like a bunch of dumb hapless ignorant victims who have no agency over their own movements.
No amount of politics is going to help minority youth not end up in prison. I don't understand why people can't get that this is an upbringing issue, not one related to policy! Being poor does not give people a free pass to crime - a lack of morality does. Morality and manners are learned at home.
No one said that it did, but stop and frisk was carried out on predominantly black men.
Excerpt: But my big problem with Bloomberg is that he will undermine the U.S Constitution just like he did undermine the NYC Constitution. Remember when Bloomberg with the city Council overturned term limits from 2 to 3? Opinion: Very few remember. His ability to buy out rules and regulations makes him one the most dangerous men in America.
Ironically, it was that very rule against a 3rd term that put Bloomberg into the mayor's office. Were it not for that rule, Giuliani would likely have run for a third term and won, and Bloomberg would never have been mayor.
Bloomberg took advantage of the rule when it worked for him. Then discarded it when it didn't.
It's also worth remembering that NYC voters approved that rule in a referrendum. I remember there was controversy whether the City Council even had the authority to override the voters.
No amount of politics is going to help minority youth not end up in prison. I don't understand why people can't get that this is an upbringing issue, not one related to policy! Being poor does not give people a free pass to crime - a lack of morality does. Morality and manners are learned at home.
Amazing that most blacks are not involved in the criminal justice system, go to work, pay their bills and taxes and yet every debate gets down to this.
Should we confine all debates about young white men to their opioid abuse, bilge drinking and involvement in domestic terrorism and mass shootings?
And yes arrests are down since the Giuliani era, as is crime so the notion that every black person is some idle criminal is ridiculous.
Amazing that most blacks are not involved in the criminal justice system, go to work, pay their bills and taxes and yet every debate gets down to this.
Should we confine all debates about young white men to their opioid abuse, bilge drinking and involvement in domestic terrorism and mass shootings?
And yes arrests are down since the Giuliani era, as is crime so the notion that every black person is some idle criminal is ridiculous.
What would be really nice for those blacks not involved in the criminal justice system at least once in a while to denounce those who are involved. But that almost never happen. It is either silence or talking against police brutality, racism and other terrible things whites do to oppress POC that justify criminal acts.
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