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Post by kitty on Oct 2, 2008 14:11:08 GMT -5
HeyGuys,
What do you think of this article?
Minority Lending Blamed for Economic Crisis
Posted Sep 26th 2008 10:59AM by Alexis Stodghill
By Alexis Garrett Stodghill, BlackVoices.com
As the official scapegoats of the capitalist system for centuries, it seems unsurprising that yet again black folks and minorities are being blamed for the actions of the mostly rich, white powerful men who control almost every aspect of this country's financial system. These are the real culprits--the ones in control--who are about to benefit from the bailout plan.
Neil Cavuto of Fox News has gone on record as saying "Loaning to minorities and risky folks is a disaster," during discussions of what precipitated our economy's meltdown. And he is hardly the only one singing in this chorus of blame.
In essence, many seemingly intelligent leaders are suggesting that it is not the heads of financial firms who are to blame for the sudden economic crisis. People skilled in financial knowledge and forecasting, who sought new mortgage volume at all costs so that they could bundle these loans to create massive profits for themselves by selling them as securities aren't to blame. No, no, no. Their motives were correct and pure. They are the victims!
It is the fault of the stupid "minority" credit-seekers who strong-armed these entities into giving them money that they knew in their hearts they could not and would not pay back. It was their ignorance of the terms of their loans. The problem wasn't, perhaps, the creation of overly complex mechanisms for lending, that were then intentionally not explained to trusting consumers who believed in the sales techniques of mortgage brokerage firms, which were preached like gospel. These "risky" customers knew that the entire financial system was resting on their shoulders, didn't they? How could they be so irresponsible?
Forget the fact that the officers of financial firms knew better than anyone else what effects on the average consumer their variable financial instruments would have. They knew better than anyone what people of normal means could afford. But the riches acquired by trading bundled mortgages were so great, they seemed to lose their self-control. And, for some reason, government overseers turned a blind eye.
The professionals paid to supervise the system failed to supervise. The financiers who profited from bad lending practices are about to get their bills wiped clean. The ones responsible are not being held accountable. And working class workers, blacks and minorities are being blamed. And people wonder why Rev. Wright has ever spoken badly about America.
Yes, let's blame the average Joe. And more importantly, let's blame the minority, for being stupid, poor and most of all trusting. Trusting that they could responsibly attain the American Dream of home ownership with the financial tools that paid professionals ensured them were within their reach.
More on Crisis from NPR News and Notes:
Loaning to Minorities... Is a Disaster
Bush Believes Bailout Plan Will Pass
The Financial Crisis is NOT New
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Post by kitty on Oct 2, 2008 14:15:05 GMT -5
Oh and by the way guys.....
I'm not convinced that this bail out plan is all just about the housing and mortage situation....
I think there are murkier waters going on that we don't know about that is being cleared up with our money in the Wall street bail out deal
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Post by giantsdodie on Oct 2, 2008 23:14:25 GMT -5
A big amen to that... I saw this on the Dave Ramsey's site: www.daveramsey.com/etc/fed_bailout/Did you see it already? Do you agree? He has a lot of advice about getting rid of credit in general and credit cards more specifically. Considering where we are globally, do you think that it is even possible/feasible for people - including christians - to even begin to function without credit or credit cards? IMO the issue isnt credit cards. You need some form of credit to operate in a credit system. The key is to make credit work FOR you and stop getting into debt. |
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Post by zelica on Oct 3, 2008 1:15:39 GMT -5
Amen! it is so hard getting out of debt.......it dont take long to get into debt either next thing you know you are drowning in medical bills, student loans, rent and all the other expensinses that we need to live....
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Post by giantsdodie on Oct 3, 2008 8:35:00 GMT -5
Amen! it is so hard getting out of debt.......it dont take long to get into debt either next thing you know you are drowning in medical bills, student loans, rent and all the other expensinses that we need to live.... Unfortunately this is the case for many working class people. I found it begins with the little things. Eating in instead of eating out. Taking lunch with you instead of buying lunch ( in NY thats at least 7-10 bucks a DAY ) I started buying groceries in bulk at places like Costco's. Yes the bill is bigger but its amazing how long things will last. You have to budget, I mean REALLY budget. For me Tithe and Offering comes off the top. I cannot afford not to do this. Next is Rent... Next Phone. Cable Bill speaking of cable.. BASIC cable.. no movie package.. no HBO. no Showtime etc etc.. That stuff adds up... If you cant afford cable watch REGULAR TV... or hey READ A BOOK !!! I started cutting my own hair because it was cheaper than going to the barber every 2-3 weeks... The little things really do add up over time. My current plan is to continue to reduce my debt to credit ratio and build some casj reserves in a savings account. I would ultmately have six months of expenses saved up but realistically I am going for one month right now. Also I am look at investing in myself more. I like the old addage.. pay GOD first.. pay yourself second.. ( even if its a small amount.. ) pay bills next... I used to live off 80% of my income.. I would like to see that go to 70&... 10% tithe, 10% offering.. 10% savings and investments... We also need GOD's plan as to how to handle and manage mour finances. Im working His plan right now to pay off my last two credit cards. And it gets challenging, its not always easy... but I can see the light at the end of the tunnel. |
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Post by nina2 on Oct 3, 2008 12:24:15 GMT -5
That's the key, right there! Especially for young people! I never forgot what Bishop T.D. Jakes said years ago in one of his sermons, about some complaining on not being able to do certain things, and saying all the time "I need money!" And he said: "No. You don't need money, you need a PLAN!" I really think that this is one issue where we should not "have to" learn the hard way. Yes, life happens, and it happens to all of us, but there are things that everybody can do to make it easier and mostly have peace of mind about it. There are so many bad habits acquired along the way when it comes to personal finances. There is also a lot of pressure from the outside, because if you are "savvy" with your finances, and you do have a budget and stick to it, you are deemed as being a "miser" and that's not even what it is about. My daughter had a serious epiphany about that not too long ago, and she actually sat down to examine everything she did and was determined to find out "where" every penny went LOL With that, she was able to figure out what was going on. And, it was not because she was living la vida loca, just not really paying attention. Then, she re-shuffled everything and established her budget, stuck to it and saw a major turn around in her every day spending and including in how fast she was able to get her balance down on credit card. Now, she has cleared a lot and can actually think about (planning!) doing things that she reeeeeaaally wants to do, but without getting back into debt. Younger people have so many issues to deal with today, but it seems the focus is always on the wrong topics. It would be great if they could really be "equipped" in that area of finances too, and start early on to become familiar with banking, budgeting etc, and getting sound advice so that the cycle is not repeated constantly. They should actually have finances coaching for kids, I think. Who knows, they might be the Wall Street's wizards of tomorrow if we do!  |
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Post by krazeeboi on Oct 3, 2008 19:52:31 GMT -5
Kitty, yes, I've heard that. And I agree that personal responsibility plays a part in all of this. But we didn't have this crisis when lending standards were stricter. There wasn't a meltdown at all, and Black folk didn't just start buying houses in the past five years or so. The lending institutions engaged in downright exploitation. It was the worst kind of deception. I think even loan sharks are more transparent in their dealings.
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Post by kitty on Oct 10, 2008 10:15:20 GMT -5
hey Guys,
What do you all think about the fact that the bail out doesn't seem to be working?
Also... as a part of this plan do the people who were foreclosed on get to keep there homes? Or do they get a fixed rate? I don't want to bail out bank and companies where they give people a variable rate loan knowing that they won't be able to pay it in the future, take their down payment and maybe years or months of mortage payments, then foreclose on them when they can't afford the rate, then claim to have "lost" money when the reclaim the property and now "we" the taxpayers and paying for these "loans" and the people have still lost the home and property!
I feel that is this is the case we rewarding them for devious behavior...
Any thought guys?
Kitty
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Post by keita on Oct 10, 2008 10:31:44 GMT -5
Sis kitty, I totally agree with the person who previously said (pardon the paraphrase) that this whole bailout is nothing more than a desperate and deceitful last ditch attempt to put a "band-aid on a wooden leg".
Imho, whoever wins the presidential election will be inheriting a U.S. economic, domestic, and foreign relations/policy disaster of unprecedented proportion.
So I truly believe we ain't seen NOTHING yet.
But nevertheless, as a citizen of GOD's kingdom, I'm not sweating any of it.
Because Mammon and his/its whole spiritual army will be destroyed...
MARANATHA!!! ;D
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Post by Nikkol on Oct 10, 2008 12:42:02 GMT -5
I think that some of the probelm is our midset on spending. As a loan officer previously, there are certain guidelines. Not everyone that gets an ARM HAD to get an ARM. That was what they chose because for the short term, it was cheaper. The point that is stressed, with ARMS is that when it gets higher, you should refinance. Unfortunately, during the 1-3 years of the ARM payment, their credit wasn't good and therefore when it was an opportunity to refinance, they couldn't. Same with a balloon pymt. You pretty much have about 15 years to get your finances together and then, you can refinance. Many ppl thought short termed... but have along term consequence.
Granted there are probably similar cases of other ways but those are the ones I know of personall
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Post by nina2 on Oct 10, 2008 14:12:54 GMT -5
What is amazing to me is that for almost eight years, this country has been lead by a man who managed to go bankrupt in the oil business, in his own state, Texas, where oil was and still is the biggest industry today.... You have to be gifted to do that! It is even more amazing that it took so long for the collapse of the economy to happen... The fact is also that we can’t allow ourselves to have short term memory when it comes to certain events and how they happen. So, it is important – sometimes – to look back and get our “history” right. I think that this article – from 2000 – sheds some light on the kind of "details" that have remained under the radar, or have not been given a lot of public attention: How George W. Bush scored big with the Texas Rangerswww.angelfire.com/ok5/pearly/htmls/bush-sec5.html(Don’t let the title of the article fool you, there is a whole lot more to that story than just playing ball, at least that kind of “ball”....) That’s how history is written, how masses are being manipulated. I have been following the news, like (almost) everybody. I am not an expert, but there are things that have been mentioned by the media that somehow got my attention more than the big numbers strictly related to the current crash: - The first one was the execs of AIG going for a major party right after being “rescued” by the government. If there is any kind of “depression” in all that, it certainly doesn’t look like it for them! What exactly were they celebrating? - The second one, was the announcement that the government could buy stakes in some banks, the politically correct expression that translates into “semi-nationalize or nationalize” some banks. Now, that is something to pay attention to, because of its very long term consequences.. - The third one, was the so called official experts actually saying that the crisis will be over and the country fully recovered in two years. How arrogant and obnoxious is that? How and why is it that the same experts can be so certain – or so they claim – that the crisis will be over within two years, and not have known that the crisis was coming, its magnitude, and not have lifted a finger to prevent it??? So, maybe it’s just me, but I do believe that, while people at the bottom are scrambling and, as usual, will be the ones paying the piper in the long run, at the top, there is definitely a whole lot more than meets the eyes, and while the little ones are going down, some are still filling up their already fat pockets while there is still time do that and getting away with it. Bush was quoted today saying: “Bush said he understood how Americans could be concerned about their economic future. "That anxiety can feed anxiety and that can make it hard to see all that's being done to solve the problem," he said.” No duh!..................  That latest one of what has come to be called “bushisms” could be funny, if it was not about such a tragedy which could have been prevented.... And yes, it is time to look up: maranatha! |
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Post by Nikkol on Oct 10, 2008 15:03:04 GMT -5
There were problems BEFORE Bush got into office. I think that one of the saddest things about this country is that we have so much knowledge....yet when we give out information,we tend to only give one side. I am getting so sick and tired of hearing McCain bashing....just as sick as I am about hearing Obama bashing. The facts are that the president for the most part doesn't really make most decisions.
And you can tell a lot by how many things we "parrot" based on other things that we say. Looking back at it and even looking at it now...it does make you wonder how much brainwashing is done....from both sides....
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Post by nina2 on Oct 10, 2008 17:14:43 GMT -5
I am non partisan, really, when it comes to those topics so, for me, it's not about pro or con any of them. However, whatever problems there might have been "when Clinton left", I do know that he left with a major surplus: President Clinton announces another record budget surplusarchives.cnn.com/2000/ALLPOLITICS/stories/09/27/clinton.surplus/Anybody can research those matters for themselves in order to know the facts. Again, since my intent is NOT to challenge anybody's opinion or convictions, I will withdraw myself from this discussion. |
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Post by giantsdodie on Oct 10, 2008 19:33:20 GMT -5
hey Guys, What do you all think about the fact that the bail out doesn't seem to be working? Also... as a part of this plan do the people who were foreclosed on get to keep there homes? Or do they get a fixed rate? I don't want to bail out bank and companies where they give people a variable rate loan knowing that they won't be able to pay it in the future, take their down payment and maybe years or months of mortage payments, then foreclose on them when they can't afford the rate, then claim to have "lost" money when the reclaim the property and now "we" the taxpayers and paying for these "loans" and the people have still lost the home and property! I feel that is this is the case we rewarding them for devious behavior... Any thought guys? Kitty Do you understand what is actually happening  |
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Post by stillfocused on Oct 10, 2008 20:37:59 GMT -5
Man..all I can say is man !!
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