The Subprime Swindle: Economic War on Black America

[zjones1222]

Subprime mortgage was not discriminant on race because it would be against the law. If subprime just including housing then why was the automotive industry affected and major insurance companies? Securities were affected because of Fannie and Freddie because the government investing in subprime along with banks. These transaction not only were available in the United States but Europe too.

[lilrog0909]

How do you like integration Black America?

[british123able]

CHOCOLATE RAAAAAIN

[billdc31]

yeah, black neighborhoods are usually in such sweet locations, no wonder the banks wanted them.

[MultiSmartass1]

The problem with a lot of so-called Black Wealth is that it is predicated on their houses and homes but not on much else.

Residential property owning is fine but it is not real wealth.

If you base your wealth on your house, you are fucked.

[ruapraia]

Well... hey there, ho, there, hi there. If you' re happy with the impression you are presenting to the world so be it. I'm happy for you, as they say to each his own.

[TheSebulba1978]

this video is bullshit. blacks have no economy anywhere on the planet wherever they are in majority..all they do is blame others for their problems. and im not a white!!!

[newave123456]

@TheSebulba1978

Ignorance come in all races. I know of many places where there are 90% black population and live very upper/middle class lifestyles.  Here is one for you to check right now. Seffner, fla.... I have family there and everyone in that place makes 150k a year or better :) try facts, it works!

[jrider79]

ACORN and other groups pushed for these types of loans for the lower class who couldn't afford the payments. Minority groups wanted these laws passed, and they got out of control. If you can't afford the payments, don't take out the loan.  The "I didn't know any better" excuse doesn't cut it.

[newave123456]

@jrider79

Acorn did not force the banks to make loans to people without jobs. Please, can someone filter these pages so ignorant people cant make comments

[jrider79]

@newave123456 I never said ACORN forced banks to make loans to people without jobs, I said they made loans to lower income people who couldn't afford the payments, and to clarify, they couldn't make the payments after their ARMs adjusted. Again, if you can't make the payments after the ARM adjusts, then don't take out the loan. You call me ignorant but you couldn't even read my comment correctly.

[newave123456]

@jrider79

I read your post completely and I make a sarcastic remark to it. Acorn and other groups are not at all responsible for wanting fairness and asset equality for an underclassed people. "The problem" was the banks and hedgefund tycoons. You have no idea how big the problem was and who was at fault. You clearly lack the ability to look any further than your nose. I have to stop being shocked by the level of shallowness that is displayed here.

[jrider79]

@newave123456 I know how big the problem was/is, and I know the banks were at fault. Fannie Mae/Franklin Raines had a big part in it, yet they're blameless under the current administration. The "asset equality" you say ACORN wants smells like socialism to me. I say equal opportunity, ACORN says equal results.

[newave123456]

@jrider79

Right now the FBI are looking into a hedgefund group that plotted to systematically take out the smaller countries with there stupid default swap schemes. Do you read the wall street journal? This information is right in front of you. Did you see the news in greece about Goldman Sachs? Do you know that germany is seeking criminal actions against them? You are unworldly and clueless. I wish people who take the time to these kinda comments, took the time to actually do research.

[jrider79]

@newave123456 Clueless? If you say so. I'm not taking either side, I'm a libertarian who thinks the government needs to stop meddling. If a company is committing illegal business practices, then they should be held accountable. Crony capitalism doesn't work. Goldman Sachs had a big hand in this, yet many of Obama's senior people are GS alumni.

[ruapraia]

@newave123456 I don't read the Wall Street journal, but i'm glade you do, because i did not know any of the things that you sited. Sometime we can learn from each other

on here, this is a great learning tool. Lets not be so self righteous while sharing. This is the erogance that turns people off to us Americans. You don't know how to just be humble and human.

[newave123456]

@ruapraia I live my life in a humble fashion. That is why I give to the "least among us". I have money, but I am NOT materialistic. But I (absolutely) hate when people fingerpoint to who they consider as "a lower level people" who are messing up america when its in peril. There were so many instances where americans blame minorities whenever things go wrong. America needs to see who is really destroying it. Its the power mongers and greedy.

[ruapraia]

@newave123456 OK that's great, and thank you for the civil tone.

That being said, I have read something very nasty and arrogant on this very wall.

that was clearly an exaggerated sense of your own importance.

i agree that Americans are in denial about why the country is in its current state.

But its like a country of children that doesn't want to take responsibility for its own actions.It never has, and most likely never will. America is in some way like a baby with a gun! ( Baby go boom ! )

[newave123456]

@ruapraia First. Why thank me for having a "civil tone". I am merely a reflection (in words) to the one speaking to me. Second, I am VERY IMPORTANT and if everyone else had more confidence the whole world would be a better place. I ALWAYS TAKE RESPONSIBILITY. Have you ever heard of the ripple effect or 6 degrees of separation? Our actions are uniquely tied to everyone else. So if I strive to be righteous and am not afraid to share it with the world, how can that be a negative thing?

[newave123456]

@jrider79

I apologize for the clueless statement. I take that back. I am simply frustrated /disappointed in the remedial thinking of so many people on both sides. Americans are blamers, we lack any ability to have empathy for anyone but ourselves. We disrepect one another, kill one another and subjugate eachother when we can should stick together. If someone is telling you they are hurting, you dont tell them otherwise. Learn from it and fix it. The US is doomed if we don't change.

[jrider79]

@newave123456 Change into what?

[jrider79]

@newave123456 Groups like ACORN threatened banks with charges of racism and pressured them into making more loans to lower income minorities.

[beeksy]

Carter forced banks to lend to poor people. The republicans warned of economic collapse. Were ignored. Clinton forced through even more socialist bullshit to get loans of "other peoples money" out to prospecting homeowners. Banks try everything to get rid of these bad loans. Obama Sued citbank for not lending enough to poor people. Banks get the blame for greed. Americans should ignore socialists. They have destroyed the british economy. Nuff said.

[TheDalinkwent]

Do you really think that bankers would give poor people loans in huge numbers if there wasn't profit to be made? they wanted to give those loans so they could make more money in short term and pass the toxic assest to other buyers and so on, and remember, it was bush who made it possible for banks to get to big to fail, the republicans pushed this through congress. usally when people are forced to do something there opposed to, they don't do it at record rates.

[billdc31]

@TheDalinkwent they wanted the loans so they could package them and sell them to wall street. they could care less about the homeowner be it black or white

[drbinc1]

Dude I was in real estate, banks aren't going to lend to someone who doesn't show the ability to repay. however, they did lax credit standards and the 20% down payment. There wasn't any laws that forced banks to lend to someone who cant afford. However, when the republican controlled congress and senate began deregulation of banking and mortgage statutes, which reached its apex in 2005 when industrial, commercial and credit banks lobbied to deregulate bankruptcy laws.

[drbinc1]

The deregulation of bankruptcy laws and stock securities, and gas, is the cause of today's recession. Which was done under a republican senate. They deregulated adjusted rate mortgage laws, where someone buys a house with an interest rate of 5%, before deregulation it would adjust to eight or 9%, because adjustments were based on margin of business and the GDP, these things have little factor in deregulation, now a 5% rate can go up to 18%.

[drbinc1]

The loan officer would sell a an ARM by saying they can always refinance, or the adjustment of the ARM wont be too high. however, at time of transfer the house received a false appraisal, so when time came to refinance there wasn't any installed equity in the property, which makes it difficult to refinance. which made these loans toxic, now these toxic mortgages were being used for stock securities investments, say hello to AGI, which wasn't allowed before deregulation. stop listening to Limbo

[macnob123]

when you mean poor you really mean black it was not black people that crashed the system it was wall street the white guys have you ever herd of Adjustable rate mortgages one mouth your mortgage is 1200 the next it's 4000 do see something wrong with that theres 300 billion dollars of these bad loans 300 billion can not crash the system out of that 300 billion the black community is credited for less then 1 billion follow the money and i guaranted it is with some whites guys on wall street

[newave123456]

@beeksy

Not sure where you got your info from but mortgage companies gave mortgages to people with no jobs (ninja loans). These mortgages were packaged and given to investors with a grade A seal of approval. That is a fact.

[bearsagainstevil]

from what you said this guy chose to get a loan he couldnt afford to pay and thats somehow the banks fault ?

I wouldnt bail him out , I wouldnt bail out the banks they both made bad choices and now the taxpayer and people who didnt make bad choices gets to pay .

see whats ment to happen is people or companys make bad choices they lose thats freedom .

bringing the peoples race into it is hyper lame , hopefully the people who lost will learn some form of lession if they dont its their fault

[Chaz770]

I know the real estate market very well (ATL) and the Journalist did not depict the real circumstances effectively. There are too many half truths being told about this crisis. THE BANKS, THE BANKS, THE BANKS, WALLSTREET, WALLSTREET ,WALLSTREET , then greedy uneducated people( form all side of the tracks). In that order period it had nothing to do with race, and everything to do with playing to PEOPLE and their greed

[ciro9]

China is already flexing it's military might. Its navy has begun to harass (much like the North Koreans had done to us back in 1968 when they seized the USS Pueblo) American ships in their region.

Anytime an American shops & spends their money at Wal Mart or purchases an item made in China. They are helping them build their military machine. This is because top greedy CEO's of American corporations makes more profits when he has to have an item made in China than in the U.S.

[ciro9]

My concern is for those American families with young children, the elderly, those caring for them & perhap's 500,000 or more homeless animals. I'd rather be helping our own people than line the pockets of the corrupt Iraqi government who have all become wealthy. some, even billionaires!

Bush made the mistake (and history will prove me right) by removing Iran's greatest enemy & buffer to the Iranian power in the region. Iraq is lost. Iran has won it with our money and blood of our troops.

[ciro9]

"We the People" of moderate income should be granted the right to borrow or refinance a low interest home mortgage loan based on income directly from the Fed which should be nationalized for the working class people of our nation" to end the mortgage slavery in America from the bank's, Fannie Mae, Freddy Mac, FHA etc. "The Change We Need" must come from the Federal government.

[dave777blaster]

No if you want communism go to china

they had homes and pensions and they chose to squander it all away on a good time and a one night stand

on the other hand if you have a job and your debts are low then your in business.

what your suggesting is the kind of thinking that caused the melt down in the first place

Do you people ever learn you can't afford it stop trying to be what you are not

[jsimple1234]

I know that the black middle class will do a lot better now that President Obama is behind the wheel.

[lotzova]

that must have been a joke right? haah

[bigtymer01rk]

why cant blacks just have a good credit score? I work at a car dealership and everyday blacks apply to get a car loan. and EVERY time, it turns out they have terrible credit. I honestly have to wonder- whats so goddam hard about having a good credit score? stop fucking up your credit! losers!  almost all white people i work with have great credit. what is it about black people that makes it where they have to carry with them a bad credit score?

[dallenmiller]

Racism carries with it some very ugly consequences. In addition, I know many whites who suffer from poor credit and bad decision-making. Whoever you are, please pull yourself together. It's 2009.

[bigtymer01rk]

i know very few whites who suffer from poor credit. black people have to go out and buy all the bullshit they can and sign up for as much bullshit as they can and give no thought as to how their decisions will affect their future. i try to approve them for loans everyday, but when i run their credit report its ALWAYS numerous collections and defaults.

[bigtymer01rk]

its amazing that almost all of them never even have $300 in a bank account, if they even have a bank account at all, but they come to the dealership wearing a $400 leather jacket and are constantly gabbing on their very expensive cell phone during their loan application turndown. its also entertaining seeing them pull up in a buy here pay here car from another lot where they signed a contract agreeing to pay like $12,000 because of bad credit, when the dealer probably only paid about $4,000.

[dallenmiller]

You appear to be so frustrated with yourself when it comes to dealing with African Americans. Here . . . I'll help you out: GET OVER IT!!!

[globaldispatchers]

it is NOT about attacking the black, it also happens to whites. I know because I am one of those whites. It is not about whites against black, it's about rich class against poor class. There are both at the top and the bottom. only if we wake up to that, and fight back through boycots, and demands of a life without rich or poor. It sounds idealistic, but let me tell you, it sounded idealistic 200yrs ago when someone said one day we would travel great distances in a motorcar. it can be done

[JTJ2511]

niggers dont deserve to live... period!

[dietrichoc]

You're brave. You're probably just a prankster tryin to get a response...either way you're a complete loser regardless of your color:)

[aorregohern]

True but even though I am hispanic and a minority I will say this and it is that in order to not end up in George's situation you must have common sense and be financially&economically educated. In this country and everywhere in the world since the beginning of time people have been taken advantage of and that is the way that our world economy works the smart take advantage of the not so smart or fit. Look even hispanics and blacks take advantage of eachother.

[H13R0PHANT]

Very true, greed is the problem. Perhaps lack of education too.

[circuit50641]

Continuation

Most people who signed an adjustible loan were not going to get substantial increases in their income. A fixed rate is the way to go. A person need to take in the fact their utilities will be higher because they are living in a bigger place. A loan officer does not take this into account. They just look at your debt ratio. Another point it's best to have some savings even if you don't use it to help with the down payment, use it for an emergency.

[circuit50641]

I would suggest that anyone wanting to buy a home to take a homebuyer course, get approved and then look for a home in their price range. I believe that most people got approved for a high loan and took all the money. Just because you are approved for a certain amount, you don't have to take the whole amount. I was approved for $90,000. However, I was looking at houses that were 10 to 20 thousand less. There's nothing wrong with adjustable rates if your income is going to rise over the years

[tellthetruthh]

HISPANICS were the major group to hold SUBPRIME LOANS. HISPANICS were given loans when other groups could not get them. Now they want to be bailed out of their mess!!!If they weren't so greedy they would not be in this situation. Most of them didn't even have SSN oe EINS.Now BUSH has made it possible for them to get bailouts without SSN or EINs!!! S0illegals aliens are milking the system again!!! While Americans pay the bill!!!

[H13R0PHANT]

Oh please. What a crock of shit! You are an agent of Discention. If all blacks and latinos would rise up together they could economically destroy the wolves that did this. This will happen, and the greedy will suffer.

[iamauscitizen]

The SUB PRIME LOANS which caused this crisis in the Mortgage Industry are always in the HISPANIC COMMUNITY across the country. Who is responsible for giving the SUB PRIME LOANS TO MAJORITY HISPANIC PEOPLE?Why is PRESIDENT BUSH allowing OUR TAX DOLLARS to rescue peoples' homes who have NO SOCIAL SECURITY NUMBER!HOW can you tax or track a homeowner who has NO SOCIAL SECURITY NUMBER OR EIN NUMBER?I have a right to know.I am a US CITIZEN.I am tired of giving ILLEGAL ALIENS ANOTHER free ride!!

[ngonea]

Evidently you did not take a look at all the PORK that was folded into the Bailout The Bill. Did you hear anything about saving peoples homes? NO! All that money is going to the crooks and predatory lenders.

[1uckycharms]

yea its bullshit, they knew black and latinos couldnt afford their loans, so when they lose their houses, the banks get property, and now Bush wants to refund their loses, so they gain all the property plus recuperate their losses, its fucked, fuck the banks fuck george bush, class inequality right here, and racism, as a white person i am deeply shamed and concerned. soon white ppl will be the next target as the midle class begins to disapear. so us white ppl will be in the same boat as every1

[Yahshua4eva]

The most important issue to gather from this is accountability.

The Bush Administration has violated numerous international agreements, U.N charters and trade agreements, Invaded countries, rape natural resources, spent over one trillion dollars, America owes money to everyone, the dollar is weak.

Accountability?

Who is responsible for this?

Who is going to stand in court and say I am guilty I will go to jail.

Millions were made via these transaction, the Rich got Richer.

[ngonea]

I want to say thank you, because you are the first I have seen who gets what has happened. It happened the same way in 1920"s, Wall St. was making a killing, working class and poor not doing so well, In 1929 when the planned crash arrived vis JP Morgan family, the working class and poor majority blamed poor minorites, Fox news is spewing their hate & lies right now about subprime, and most ppl buy it. This is all by design and it is not new. Transfer of wealth is the name of the game. Peace

[encantoman]

Its a lesson that will have been well learned. There was some predatory/profiteering activity here, but at the end of the day would those same blacks/latinos want somebody to say that because of who they were, they need someone else to make their loan decisions? Sure after the fact they might, but everybody has to make their own decisions for better or worse. Due to historical reasons they were denied these choices and are learning the hard way, but learning all the same.

[theDrewid]

this guys voice is distractingly annoying.

[Zapppo]

Truth bites, doesn't it?imthrowedup94?

[Zapppo]

If it's too good to be true, it probably is.

The buyer committed FRAUD by knowingly signing a loan with false/inflated income & house valuation.

Definition of Sub-Prime : Bad Credit.

Solution?

Live within your means.

Pay your bills ON TIME.

Read & understand the contract or DONT SIGN!

If you do & you lose, shut up & suck it up. No one held a gun to your head. DON'T SIGN! IF YOU DO & LOSE, DON'T CRY, SUCK IT UP AND QUIT BLAMING OTHERS WHEN YOU HAVE CONTROL OVER YOUR OWN LIFE DECISIONS.

[ngonea]

How many committed fraud when they ran up their credit cards 10K 20K, 30K and could not pay shopping in the Malls of amerikkka.

Minorites do not get that kind of unsecured credit, just the priviledged in amerikkkka.

They gave them those loans because they were secured by property which they could confiscate. Obviously they knew they were a risk. They wanted the subprime borrowers to default. The bank puts digits in an account, now they have real assets, The poor ppl's homes. SHAMELESS BRUTES!

[encantoman]

All true, but try this one on. You decided to invest in US currency, by accepting it as payment for work. Now those dollars are worthless, are you going to blame it on others, or "suck it up" when those dollars can buy nothing?

[roibasses]

It seems there is a correlation between education and wealth... not color.

Stop blaming race... please.

[newave123456]

@roibasses

Check the stats on the US census website my friend. Blacks go to college at the same rate or slightly higher than whites as a percentage of population. Don't speak unless you have facts to back you up.

[dave777blaster]

your not an American there is one America

As long as you call yourself a black American

your an idiot

[discountninjah]

Buyer Beware.

[TheFashionistaChic]

I am not sure how he can put the responsibility on the lender. The home owner received cash. How was this cash used? There has been a large population of people of all nationalities that have made the mistake of pulling money out of their homes. This is evidence of consumer lack of financial education and greed.

[TheFashionistaChic]

I was tempted to acquire that type of loan, but I knew the only way it would work if I would use the saving I received monthly toward some other financial investment that would have achieved me a higher yield. I knew I did not have the discipline therefore I would have never have gambled with my home.

Again, this is about greed and people failing to investigate a contractual agreement.

[dohcb20a5]

Black america?who's causing racism now?by seperating our people,based on who's got what,we continue racism,try this,dont be a dumbass with your money,invest it properly,and quit blaming (white america) for all ur problems!

[Lilprof35]

I have to say this is the problem in America. I was told I could get a loan,but I was to dumb to look at my monetary situation so now it's somebody elses fault. Agreed the the banks are just as much at fault,but he signed the dotted line. So now my taxes will go to bail out another corrupt bank and some stupid MFer. By the way what happened to capitalism if we bail out bad business practices. Sounds alot like Socialism -Communism to me.

[hello0420]

I think that unfortunately this is a story not only limited to the black middle class. This is a story that is affecting ALL races, nationality, etc... However we should all be aware what we are signing and doing: it's called responsibility.

[sonicspy79]

check out Dalton Conley's: Being Black living in the red, And also check out the PBS special Race the Power of an Illusion, it's amazing stuff goes directly back to slavery, and parental wealth. since most wealth is inherited the lack of inheritable wealth becomes in the future and is to date the leading reason There is a thing middle class of African Americans today. Dan Lacy is amazing as well. I am glad there is coverage talking about the high interest loans and foreclosures happening.

[ConstructionZoneGuy]

I am shocked to find out that stupid people do stupid things.

[zupf]

If he wasn't given the loan, you would have called the bank "racist".

[rgr8house]

I work for a big bank and we didn't do loans like that. Everybody knew for years that those loans had bogus appraisals and falsified income documents but the greed of the lenders and the borrowers kept it all going. Why the industry regulators failed to step is is a mystery to me but those numbskulls should be at the back of the breadline.

[jeweljgemini]

I got four words for you = Follow the money trail!

[ChulaKirby]

Thanks CONGRESS! I hope all your sweet heart Mortgage deals were worth it! Thanks also to you Henry Cisneros. How could you DO THIS TO US? Thanks Barack and you other senators, i heard you didn't have to pay points or origination costs and your mortgages. Thanks Senator Dodd, say "Hi" for me to your countrywide friends and I hope you put your mortgage savings to good use! Y scumbags!

[hesh2]

I still don't know what's so special about owning a home? Y is the american dream based on consumption?

[muscleboundhomo]

There are a couple reasons:

1-Tax incentives. You get to write off property tax paid to the city/county/state & you get to write off interest paid on the mrtg.

2-One of the most important is that over a person's life, their home will eventually be paid for. SO in old age, they won't have to worry so much about the expense of shelter on a fixed income.

Not anymore: republicans have set it up so that corps don't need to protect 401ks & mtg cos PUSH 'reverse mtgs' etc. REPUBLICAN$=PREDATORS

[ANGLEBOOT]

1-2 is right. The rest na.

Once you retire and live on a fixed income. The last thing you want to do is take out a loan against your home.

The goverment, banks and loan companies didn't make anyone do it. many did it to do major upgrades to their home. But with a floating interest rate to help keep the payments down. But rates went up, up higher than their fixed income could handle.

Congress didn't make a law saying that these people had to make a loan against their home.

[dst2163]

hesh 2, its a hoard.

[MaHaRushie]

It is basically a lifestyle choice. The write offs are nice. But, if you rent, you can you dont pay upkeep, rent is probable cheaper than mortgage, renters insurance is cheaper. By the time everything is factored in, it is a wash.

[jdmhscit]

This month that is true, but 30yrs later if you have paid off your home it becomes a better deal. Ask anyone you know what they paid in rent 30 years ago. Now your one month comparison was true then as well, so for the cost of rent and probably a little extra you could have avoided a lot of inflation.

As for those who live in hoc as a life style. Pawn shops have been screwing these people for centuries, so whats new. They borrowed money they could not afford, spent it, and now want my taxes

[snakecharmer133]

Take the money and run!

[erendo]

It's called personal accountability. Black, white, brown, whatever. Too many bought houses they couldn't afford. All those people deserve to suffer the consequences of the bad decisions THEY made.

[loujencece]

@erendo In defense of these individuals they were tricked the lenders took advantage of what these people didn't know

[hfl2005]

Someone please explain how it is anyones fault but the borrower for biting off more than he can chew. Unless I am mistaken no one said "either your signature or your brains are going to be on that mortgage".

I currently live at home and have been waiting YEARS to be able to buy a house Odd how I was not taken advantage of in this situation

[bujoun76]

Most people dont read any contracts that they sign. Hell, even the lawyers dont unerstand them! Credit card contracts for example. Yet nearly everybody has one for better or worse. It's the same old story. The crooks (lenders) have found a way to make a quick buck and they took advantage! And with the republicans in power, this is all the fault of the people and not the lenders who shouldn't have released massive loans to people who wouldn't have qualified in the first place!

[mojorisin52]

I spent 15 years working for an investment group that bought distressed loans from FDIC, RTC, & major & minor banks across the country that wanted to get rid of loans, mostly because they were delinquent. I saw a lot of stupid things from the late 80s to now. During all of this time that the worst round of hocus-pocus lending was going on George W. Bush and his Administration did nothing except brag about how home ownership was at its highest levels in the history of our nation...

[IndIka024]

The real tragedy is how these banks and lenders have damaged our economy trying to turn a quick, scammed out buck. The same way the Military Industiral Complex has damaged our economy with the war in the middle east. I would say the majority of the blame falls on the lenders, they knew how many people would forclose, and they didnt care, and now Bernanke is bailing out all these banks with tax money, its total bullshit, let those fuckin banks sink, thats what they deserve.

[VulcanEquipment]

We al fall victims to circumstance. Black people fall victims to scams but so do whites.

[jenniferann2]

the whole thing is so sad, so what's new?

[e4gail]

White - black - who cares. Try not signing up for loans you know you can't afford.

[capsource1]

I stopped being so shocked that when people would sign papers they wouldn't even ask any questions AT ALL. In the black community -- it was even worse. I had one guy I worked under -- black owner - owned a mortgage company in Chicago CREATIVE MORTGAGE -- He said to me once that this is better then robbing banks. 95% of the LO were black and they decended upon the black community. Most blacks would rather do business with a white person then a black LO. It was a diesaster waiting to happen....

[mojorisin52]

I used to work for an investment group that purchased distressed loans from FDIC, RTC, and banks across the country. I managed and sold properties we had to take back. I remember Creative Mortgage because they were trying to refinance a loan for a lady that was going to lose her house. They were going to screw her more than if she just walked away....

[capsource1]

I use to be a mortgage broker and there is SO MUCH BLAME TO GO AROUND that it is impossible for the average person that is not hooked up to the industry to comprehend. And the target of these loans wer NOT quote-unquote poor people. I have had very well educated and upper class people that must get a mortgage loan take them.

[roadkill439342]

It is interesting to note: that the video fails to mention the PEOPLE who pushed so hard to get loans for "risky" homeowners......who were not only Blacks, but low-income whites, hispanics, asians and other minorities. It was the Black members of Congress that pushed for Legislation giving loans to people who couldn't afford them.

[antimarxism]

Exactly roadkill!

The loan types were forced on lenders by blacks and black advocate groups through the power of government.

[jackjohn6921]

That being said, ALL of the American middle and lower classes are affected and sometimes even the upper classes, but they tend to have the means to make it through relatively easily. I say: it's unfair that the poor people losing out due to the subprime crisis have to pay for the mistakes of Wall Street. Here in Europe, where, sadly, racism as we know it today was first conceived, have at least learned one thing: racism is outdated in a world ruled by money; other notions exist to mislead people

[elvisjulep]

The real war on black America is the notion that any time they make a mistake they should blame white folks. I imagine these evil lenders were all white and they broke into the man's house wearing their white sheets and forced him to sign. Had a scrupulous lender turned Mitchell down based upon his economic status, we'd hear how the racist lender wouldn't give a black man a chance. This is indicative of liberal, nanny-state mentality. Elect Obama if you want to hear this rhetoric spewed daily.

[747dog]

.....SOOOO TRUE....The Ghost of Elvis Speakes.. :)

[SlaughterMcKill]

EVERY group makes a victim of itself, rightfully so or not, so this is no suprise. Oh, and for the ten-millionth time, pluralism doesn't work.

[kerpal2343]

Its amazing that the federal reserve gives a loan to the country every year to run it, then us tax payers pay a little bit of that off, then at the same time they charge you twice for the house you buy, once to pay the seller once to pay the bank (at the same amount).. My Fellow Americans You Are Fucking STUPID!

[norriscj]

What I don't understand is if this loan had absolutely no purpose, why did he take out the loan?

[crckntoast]

He didn't know it wouldn't help! Often these loans offer a low rate but the fine print makes it variable. Or the loan is an amount which seems helpful but whose amount is rapidly accrued in its own interest. Lenders have been very tricky and predatory.

[raselptah]

My mother inlaw has A1 credit (800's)She decided to buy a new home.With a substantial amount me/wife Donated, She secured a loan. At the time we were unsavy borrowers. The no good bastards (mortgage co. refered by realtor)steered her to a subprime 9% adjustable rate dble mortgage. After studying realesate investing,we realized this bad deal.Fortunately for us,we got out by refi for better terms. Are we stupid? No. Realestate/investing is a science that requires study. I am a business owner.

[raselptah]

(cont.)My wife holds a Master's degree in public admin,and works for a major university. we'd like to believe that we are educated people, but no one knows everything. Doctors,lawyers and bankers are some of our paradigm leaders. we trust their word more than we would the avg. shmo.That means we are at their mercy if we won't practice our due diligence. Unfortunately how do you go about this tricky science of finance. A subject that scares many folks.

[knoyurself]

Consider the source.

[truthforamerica]

People who get loans should know what they are getting into before they sign their name on the dotted line. It is absolute garbage to say that predatory lending is the problem. Do some research. A couple decades ago federal regulators required lenders to give out loans to less than creditworthy people due to "concerns" about not enough diversity lending. That opened up the subprime market. Now it is suddenly government's role to take my tax money and bail out stupidity. Don't buy this crap.

[truthforamerica]

This is the biggest farce imaginable. I am saving for a home because I know I cannot afford the home that I want yet. So Senator Chris Dodd introduces a bill that gives 300 billion in bailouts to people who didn't do it the right way. They take my money and bail out people who made stupid decisions. I don't buy this nonsense that the problem is only predatory lenders. If you buy a home, you should know enough to know about the contract that you are signing.

[iammoni03]

Truth of the matter is: If you cannot afford the loan, down payment, ignorant about ARM loans or loans in general. Then educate yourself before buying. Don't buy and expect people like me to feel sorry for you. Don't care what color you are.

[botanistic]

So why did this guy need a home loan if he was taking home 5k a month and already owned the home?

[AlmazB]

It is all people not only Blacks. Unfortunately Blacks suffered the Brunt of the BS. It did not matter for most people. THEN the government wanted to get involved to help when whites and others were being affected. At first it was the same old sotry about Blacks being irresponsibility but when it started affecting WHITES THEN everyone started saying these poor hardworking people. Things that make you go hummmm.

[mortal780]

While I value the content of your video, suggesting in the title "War on black America" is inaccurate. I know of many people who are non blacks facing the exact same situation. It is more an issue towards an economic class rather than a race. I agree it is nuts to give a mortgage loan to a 70 year old but the bank changed their rules and in turn allowing them to loan money to anybody breathing.