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Author Topic: The Diversity Recession, How Affirmative Action Helped Cause the Housing Crisis  (Read 2001 times)

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Offline bijou

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The Diversity Recession, How Affirmative Action Helped Cause the Housing Crisis
« on: June 23, 2008, 03:45:23 PM »
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Uncovering the roots of the disastrous home mortgage bubble that popped last year will keep economic historians busy for decades. Yet, one factor has so far been largely overlooked: the bipartisan social engineering crusade to drive up the rate of homeownership by handing out more mortgages to minorities.

More than a negligible amount of the blame for the mortgage meltdown can be traced back to multiculturalism: government-mandated affirmative-action lending, demographic change, illegal immigration, and the mind-numbing effects of political correctness.

The chickens have finally come home to roost.

About half of all mortgages for blacks and Hispanics are subprime, versus roughly one-sixth for whites. Not surprisingly, the biggest home price collapses have occurred in heavily Hispanic cities such as Las Vegas, Miami, Phoenix, and Los Angeles.

The mortgage bubble was essentially a bet on the purportedly increased creditworthiness of the bottom half of the American population. After three decades of the home ownership rate stalling at around 64 percent, a series of federal initiatives to increase minority and low-income ownership helped push the rate up to just below 70 percent.

As this graph from a 2006 article by three economists with the Federal Reserve Bank of St. Louis shows, the great bubble of the last dozen or so years was driven by bets on marginal households well below the median.

...more...
http://www.takimag.com/site/article/the_diversity_recession_or_how_affirmative_action_helped_cause_the_housing/

An interesting article reviewing the housing bubble.
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Offline DixieBelle

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Re: The Diversity Recession, How Affirmative Action Helped Cause the Housing Crisis
« Reply #1 on: June 23, 2008, 06:32:43 PM »
I'm glad someone had the nerve to say it. It's very true in my surrounding area.
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Offline Uhhuh35

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Re: The Diversity Recession, How Affirmative Action Helped Cause the Housing Crisis
« Reply #2 on: June 23, 2008, 06:33:59 PM »
Rush said the same thing a while back.
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Offline Tess Anderson

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Re: The Diversity Recession, How Affirmative Action Helped Cause the Housing Crisis
« Reply #3 on: June 23, 2008, 10:46:35 PM »
Well yeah, the mortgage companies were trying to get the numbers up so they qualified a bunch of people that couldn't afford the house they bought - the companies lowered the standards and wouldn't check puffed-up numbers the loanees fed them.
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Offline Ptarmigan

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Re: The Diversity Recession, How Affirmative Action Helped Cause the Housing Crisis
« Reply #4 on: June 26, 2008, 12:33:40 AM »
Affirmative Action is just another way to keep minorities down and reinforce stereotypes.
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Offline vlad335

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Re: The Diversity Recession, How Affirmative Action Helped Cause the Housing Crisis
« Reply #5 on: June 26, 2008, 01:35:57 PM »
The credit industry is part of the problem. Back in 2002, we applied for a home loan without a particular house in mind just to see what our budget would be. My Wife and I had been renting for 8 years and it was time to buy. Shockingly, we were approved for 315,000 on an ARM! 100 grand on a fixed rate. Mind you our credit was terrible at this time. I honestly didn't think we would even get approved at all.

Housing prices are not terribly expensive here compared to most other places but we did the right thing and bought a home for 72,000. (Our rate was 11% and we refinanced it to 8% 3 years later and put in a kitchen) We had a choice between the red pill or the blue. If we would have bought a house for 300 grand that we couldn't possibly refinance we would have been kicked to the curb a couple years ago. I wonder what percentage of people took the red pill? Hmmmm...

Some folk just have to be livin large yo.
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