I do not agree with this argument, "Blacks and Browns ruined our economy" one bit. For one thing, there is not the tiniest bit of evidence that this is true. Social scientists and journalists, liberal or not, often tell the truth. If Blacks and Hispanics ruined our economy, that's unpleasant to hear to most liberals, but it's going to come out sooner or later, because a lot liberals (like me) would write about it whether it's PC or not.
First of all, the "pressure to loan to Blacks and Browns" thing came in under Clinton around 1992 or so. There was a problem, because entire Black and Brown neighborhoods were redlined as bad credit risk. There were all sorts of creditworthy folks living there, but they could not get a loan because of where they lived.
This was back in the American Middle Ages, 15 years ago, when lenders actually cared whether or not you could repay a loan.
The economy blew up due to subprimes in 2008. There is a horrible time lag there that just does not make sense.
This argument portrays lenders as the good guys who were forced to loan to scummy non-White ghetto types who never intended to pay back their loans.
First of all, the banks were never really involved in any of this from what I can tell. One of the drivers of this whole crazy mess was the farming out of home loans to home loan institutions like Countrywide which were basically run by criminals. The banks washed their hands of the debt because it wasn't getting paid back to them anyway.
The Countrywide folks deliberately made bad debts to noncreditworthy folks because the debt wasn't going to be paid back to them either. Why? They were going to package it and fraudulently sell it to a bunch of sucker victims. Criminal accounting agencies gave the crap mortgage securities AAA ratings so they sold better.
Suckers all over bought the stuff, including I guess a bunch of banks?! Surely, brokerages went up to their necks in buying crap mortgage securities. Then insurance companies like AIG insured the buyers of this crap debt in case it went bad. The whole fraudulent mess blew up, as anyone with any sense knew it would. But when to scammers and fraudsters ever care about the damage they do?
This argument attempts to portray the Countrywide criminals as fine upstanding citizens, forced by Evil Big Government into making loans to deadbeat niggers* and beaners* who anyone knew would never pay back the loans.
That's not true. These guys were deliberately making shit loans because they make like ~$5,000 commission on each one. They sold the debt so they didn't give a damn if it went bad. The more loans the better. Standards were lowered and subprime bullshit was invented to get noncreditworthy folks in the door and put their John Hancock on the loan they could never pay back.
Suckers were fooled about their real ability to pay back the loans - they were told that they would be able to pay back the loans easily, and they fell for it. Hey, scammers and fraudsters are good. They fool all sorts of people, even smart people, all the time. It's not the victim's fault when he's taken by a sociopathic con artist.
Furthermore, it is not up to me to decide whether or not I can pay back a loan.
Me? I'm basically insolvent.
I'd love to have a loan for $20,000, $50K, $100K or however much your fool ass is willing to loan to me.
Of course I can't pay it back.
My credit rating will get wrecked, but if I need the cash, I won't care, and anyway, you will be left holding the bag, and out for $100K or whatever. It's up to you, the lender, to decide if I am a good credit risk or not. One look at my bottom line should send any lender into paroxysms of laughter.
Anyone who makes an extravagant loan to me is an idiot, deserves what they get, and odds are they are going to lose big. Lending institutions used to be sane. Borrowers were examined with a fine tooth comb and run through the gauntlet. Few loans went bad.
When the loan isn't coming back to you anyway, there's zero motive to care about repayability.
That's a recipe for disaster.
Here a smart commenter, turkey, offers a modified theory that offers bits of both theories and seems to make sense. Clintonite neoliberal hucksters used anti-racism as a ruse to allow (Not force, since they wanted to do it anyway!) lenders to lower standards. They tossed in the clincher of Fannie Mae and Freddie Mac backing of the crap loans.
This was an era in which both Republicans and Democrats were in on the increasing privatization of Fannie Mae and Freddie Mac. Some Clintonite Dem criminals like Franklin Raines made millions off this fraud. Republicans were basically along for the ride. Black and Brown proles were used as suckers and conned into credit-wrecking loans that they could not pay back so huckster-criminals could make a fast buck.
RL: "There appears to be little evidence to back this up. For many years, banks had different standards for Whites versus non-Whites and many Blacks found it almost impossible to get a home loan no matter how good their credit was."*Used sardonically
turkey: Actually, the VDare top guy (Brimelow) pointed out in a '93 Forbes article that the default rate in the early '90s was the same for blacks and whites, i.e. the mortgage lenders were using correct terms and the market was sane. If blacks were held to unreasonably high standards they'd have had lower default rates than whites.
Instead during the '90s the neoliberal Democrats used race crusading as a ruse to let lenders make quick money off marginal loans often implicitly backed by the government (which they were all champing at the bit to do - this does not excuse them), while seeming to stay on the side of the angels, and Republicans saw the angle and got down in the trough, too.
The default rate differential between whites and black ballooned under the irrational regime. I'm not familiar with the "Hispanic" analogs but there's been so much immigration that it's probably hard to follow.
There's actually a PDF on the net of a response from Fannie Mae propagandists in the early '90s trying to get Brimelow to shut up about their gravy train that you can download. The bullshitting is obvious in hindsight.
So the higher quality of white nationalists are laying some blame on the exploitation of the religion of anti-racism, not on lumpen whites and blacks and mestizos and Amerinds themselves, who shouldn't be blamed for trusting a smiling fixer that said they could have a nice house.
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