Niggers* and Beaners* Wrecked the Economy

Repost from the old site.

White nationalists have advanced the extremely racist argument that Blacks and Hispanics are responsible for blowing up the economy with the latest subprime mortgage meltdown, which has taken out titans in the insurance and brokerage industry. Lehman Brothers, the 3rd largest brokerage firm on Earth, was allowed to implode.

AIG, one of the world’s largest insurance companies, was about to go bankrupt until socialism stepped in, as the Bush Administration bought an 80% stake in the firm. I do support nationalizing huge industrial titans like this that have proven too irresponsible to run a modern company.

AIG went down because they insured the subprime securities that investors bought against going bad. Yes, you can buy insurance on your stocks, bonds, derivatives and other financial crap. Amazing, huh?

It remains to be seen whether an $85 billion bailout of AIG is a good bargain for taxpayers. It seems that we are investing public money in this mountain of AIG’s losses, no? How is the public supposed to benefit from this?

AIG investors are now scrambling around trying to figure out a way to pay back that debt in order to ward off a government socialist buyout of 80% of the stock. I do not think that they can do it. AIG is, in my opinion, insolvent. Nor do I think they will have much luck borrowing money from anyone else. Would you loan these losers any money? Get real.

Meanwhile, even after the bailout, AIG’s stock is still being pounded into the dirt. I guess that bailout didn’t make anyone happier about AIG stock. Everyone exposed to AIG stock in the form of pensions and other funds is scrambling to get out from under the avalanche. Pension funds are suing AIG for wiping out their holdings.

Do you own an AIG insurance policy? That’s not worth much, if you ask me. States are now “reassuring” policyholders. I’d be canceling that toxic policy in a New York minute.

I do not agree with the White Nationalist racist argument that niggers* and beaners* blew up the economy.

They apparently got this argument for articles like this Village Voice piece. However, if you read the piece carefully, it does not support the WN argument at all.

Under the cover of anti-racism, Andrew Cuomo and the rest of the Clinton criminals gave the industry what it wanted – loosened regulations on whom they could loan to. “It is also worth remembering that the motive for this bipartisan ownership expansion probably had more to do with the legion of lobbyists working for lenders, brokers, and Wall Street than an effort to walk in MLK’s footsteps”, as the article notes.

Note that the Bush Republicans did not overturn a single one of Cuomo’s “anti-racist” loosening of standards. Furthermore, as I read the article, there was no federal “mandate to loan to more Black and Brown poor people.”

This argument makes it seem like Evil Big Government liberals forced prudent bankers to make loans to non-White deadbeats that they knew would go bad, loans that they themselves did not want to make. This is not the case.

The debt was already being sold and resold all over the place, and, as the article notes, even if the borrower defaulted, that was no big deal either, as they would just resell the home. Lots of money to be made all around on every step of the chain, even if the borrower defaults.

The latest insanity, where Joe Public gets to bail out a bunch of gambler criminals, is truly horrible. Basically, you and me will be forced to buy up all this bad debt from a bunch of white collar crooks, debt that is nearly worthless. For this worthless debt, we will fork over $1 trillion for a pile of stinking garbage.

Further, the crooks are absolved of all of their losses at the Mortgage Casino and free to go gamble away again. This means we are setting ourselves for this situation to recur over and over, and as long as the public bails out all losses and guarantees all gains, there is zero motivation to be prudent. Wow, isn’t neoliberal capitalism a great system!

Incredibly, both parties, from the most liberal of Democrats to the most conservative of Republicans, got in on this bullshit. A particularly horrible feature of the plan that the “liberals” went along with is that there are to be no new regulations whatsoever on the financial industry. Gotta love those liberal Dems!

In this way, corporate criminals get to make all of the money they can with this sort of gambling, but then when they start losing money, you and me have to bail them out. What a bunch of fucking shit!

That’s like giving me a credit card to go to the casino and I get to keep all of my winnings and any time I lose money, you all get to pay me back so I can go to the casino tomorrow. I like that deal! Let’s set it up now!

*Used sardonically

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5 thoughts on “Niggers* and Beaners* Wrecked the Economy”

  1. Yes, it had nothing to do with race. Kevin from Cryptogon posted an account of working in IT at one of the big mortgage companies. It was one of those crooked “chop shops” that would give loans to anyone, and I mean anyone who could fog a mirror, and then immediately bundle the mortgages and sell them. When the ponzi scheme started to crash, he started getting calls from loan officers complaining that the system would no longer accept fake social security numbers!

    Socialism for the rich, capitalism for the poor.

  2. The way I see it, I don’t blame blacks and Hispanics for purchasing bad mortgages. I blame those who lowered the standards in the first place, who were white.

    In this case, both the anti-racists and WN’s are wrong. WN’s think that the blacks and Hispanics are the ones mainly responsible for the housing collapse. Anti-racists think it had nothing to do with it.

    Paul Craig Roberts argues that the lowering of lending standards in order to give blacks and Hispanics greater access to loans did play a role.

    However, he does not give nearly as much weight to that factor as many WN’s do. It’s just one of many factors in the collapse of the economy.

    So yes, both sides are wrong.

    1. Roberts is wrong! You don’t understand. The banks and mortgage loan sharks *wanted* those lowered standards. No one forced those poor innocent angelic bankers and loan officers to give loans to shiftless non-White deadbeats. This whole argument is so fucked up and racist it makes me sick. I can’t believe that Republican Party talk show guys are parroting this sick racist shit. It’s revolting.

      1. Robert, with respect, I’m going to take the word of Roberts, a trained economist, over yours.

        Also, I never blamed those who actually applied for the loans.

        I blame those who lowered the standards in the first place, who happen to be white.

  3. oh yes its got to do with race. White collar mortgage and investment
    bankers speculating on and granting minority mortgages that couldn’t ever be repaid, because they are liberal and greedy and so they wouldn’t be considered racist and stock brokers speculating on the stock market just like back in the 1920’s ala Joe Kennedy remember the Great Depression.

    Financial Speculation should be made a Death penalty felony with
    no appeal a instant Death penalty in our country (the USA)
    you speculate you die! your company speculates it goes out of business is sold off to pay back the people it frauded and those responsible tried and executed

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