The Subprime Swindle: Economic War on Black America

Nation magazine contributing writer Kai Wright, discusses his July 14 article about the mortgage crisis and its affect on the Black middle class.

( http://www.thenation.com/doc/20080714/wright )

For his story, Wright traveled to Atlanta, Georgia where he met George Mitchell and many others like him who had fallen victim to lending scams and looming foreclosures, a problem that has plagued millions around the country.

Mitchel, age 77, was approached by IndyMac lenders, among others, and was convinced to take out loans he didn't need or understand. He doesn't even remember signing the papers and now faces losing the home he and his wife bought forty years ago. Wright explains that home equity is one of the main sources of wealth for many middle-class African-Americans who used home ownership as a means of attaining the American dream.

Today, that wealth is being stolen from them through predative loans and a national rhetoric of "borrower responsibility." Watch Wright explain the depth of the problem and what it means for the future of the black middle class.

PHOTOS BY: Christopher T. Martin
www.christophertmartin.com

Category:

News & Politics

Tags:

• commentary
• analysis
• kai
• wright
• videonation
• subprime
• mortgages
• us
• economy

[roibasses]

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

Stop blaming race... please.

[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.

[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]

@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

[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.

[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?

[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 ! )