The Niggers and Beaners Caused the Housing Crash Lie Again

FrankBD in the comments is reiterating the Niggers and Beaners Caused the Housing Crash argument, one of the most vicious and pernicious racist lies in recent memory. Outrageously, this lie, which started out on White nationalist sites, is become standard Republican Party propaganda. You heard that right. The Republican Party is now using White nationalist propaganda as some of their top talking points.

I agree. I don’t see how we can help Haiti, Detroit or No Child Left Behind without taking differential abilities into account.The subprime crisis should have convinced everyone that you can’t assume everybody has the ability to make their own best decisions all the time. And business WILL take advantage of the lesser intelligent.

The Niggers and Beaners Caused the Housing Crash argument goes something along the lines that the government forced kind, loving banksters and other virginal saints to sell houses to insolvent and irresponsible minorities. The idiot NAM’s signed up to buy homes that they knew full well that they could not afford.
It’s simply not true.
Previously, the deed went back to the bank. The bank had in interest in only selling homes to those who could make the payments. If you were not solvent enough, no loan. Period.
However, with deregulation, the bank no longer cared whether you could pay off your home or not, since they were selling the mortgage deed to some sucker who didn’t know what he was buying. It was out of the bank’s hands. They sold the mortgages to some sucker, so they could care less whether the buyer could afford the payments or not. They still got paid. The guy buying the fake mortgage backed securities, made up of homes sold to insolvent buyers who had no business buying a home, was left holding the bag.
The subprime mortgages were apparently deliberately set up so you could not pay them off.
Insolvent buyers have been lining up to buy homes and other things forever. If I’m insolvent, and you give me a loan I can’t pay back, screw you. You blew it, didn’t you, fool? You don’t give loans to insolvent folks. Rule #1 of banking.
However, with the jimmying of the rules, lenders no longer gave a damn whether borrowers could make good on their homes. In fact, they went out of their way to find idiots who had no business buying homes and sold them a pack of lies about how they could buy a home for reals now. The Blacks and Hispanics (and others) were suckered into buying homes they could not afford, since no one cared anymore whether they could even make the payments or not!
Get that? The lenders did not care if you could pay back the loan or not! Rule #1 of lending right out the window.
I really don’t understand the ins and outs of the balloon payments and subprime loans, but these predatory loans were in particular marketed to these poor Black and Hispanic folks for some reason. The Blacks and Hispanics were the victims!
I also understand that you almost had to be an attorney or a CPA to understand those insane, convoluted contracts which were not explained well. The sellers lied about the nature of these predatory loans, and you almost needed an advanced degree to even figure them out anyway. Many buyers had serious misgivings, but the sellers just brushed them all aside and assured the people that everything would be cool. Typically, they lied about the balloon payments and subprime stuff that would in fact make these homes unaffordable to the buyers.
Apparently Frank’s argument is that the NAM’s were not smart enough to figure out the crooked contracts that they were being conned into buying. But in the past, no one would have sold anyone, NAM or not, such a loan in the first place. And as I said, even a real estate attorney might have had a hard time understanding those insanely convoluted contracts. You shouldn’t have to bring an attorney with you when you go to buy a house.
If niggers and beaners are too stupid to figure out whether they can afford a home or not, how did they ever buy homes in the past? Blacks and Hispanics bought plenty of homes in the past, and there has been little or no problem with default and foreclosure. Why? Because lenders made sure that NAM’s, like anyone else, were only sold homes that they could afford.
Talk about blaming the victim.
There’s also no evidence that the evil liberal government forced these Mother Theresa like banksters to sell homes to those who could not afford to buy one.
There is a government program, longstanding, that encourages banks to sell homes to minorities, especially Blacks. This program was necessary because for a long time Blacks, creditworthy or not, had a very hard time buying a home in many places. There was legal discrimination against them which prevented them from getting a home loan. This government program has been ongoing for 20-30 years and has had few, if any problems. Their rate of foreclosures during the recent housing crash was very low.
The worst thing of all about this argument is that it lets off the hook the sick, vile, slimy, loathsome maggots in the form of Finance Capital, the banksters, home loan reptiles, and other criminal trash. It’s capitalist criminal dogs like this, and the dirty politicians who enabled them, who are the real cause of the crisis.

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0 thoughts on “The Niggers and Beaners Caused the Housing Crash Lie Again”

  1. Robert, I think you mis-understood (probably my fault) the moral culpability I’m assigning to subprimeism. Minorities got in over their heads with products they didn’t understand. And absolutely the lenders encouraged it.
    I don’t morally fault the borrowers for this. I think the extremists of both the Democratic and Republican coalitions saw: Dems) a way to raise minority homeownership rates by designing new types of products; Reps) a way to make money off low-income people who wouldn’t normally be their best customers.
    Middle Americans never saw anything wrong with the 6% thrity-year mortgage. If you don’t qualify for one, then get your financial affairs in order before buying a home. If they payments are too big, find a different house you can afford.
    I remember in one book I read about this issue, that a news report said that whites were accepted for prime mortgages 89% of the time, and blacks 83%, but among those who didn’t qualify, their performance was the same. (This implies banks were applying their standards fairly.) But the news article was headlined “Blacks 60% more likely to be turned down than whites.” This created an expectation that blacks (whose credit is not, on average, as good) needed a more creative type of product that the banks were all too willing to sell them at a premium.
    This is a perfect example of how liberal race unrealism ended up hurting the very people they were hoping to help.

    1. Errata: whites were accepted for prime mortgages 89% of the time, and blacks 83%, but among those who DID qualify, their performance was the same.

    2. It was Bush and the Republicans who tried to benefit from the “record high home ownership” figures before the crash, not Democrats. Conserves just say they don’t believe in regulation of “private” business- no matter what the cost. They say “caveat emptor” (complete bullshit- sellers have a moral and legal obligation to sell only valid products), they blame the victim (if they don’t like him/her), they blame lawsuit plaintiffs (for being “sue happy”), yet who is now suing the Fed Gov’t en masse for the “right” to be free from Health Care. If Conserves won’t/can’t even agree on any facts, there is no use arguing or debating them. It’s like debating a religious fanatic. Futile.

  2. Frank, this is insane.
    The subprime mortgages were sold deliberately to folks who had no business buying a home. They were rigged so that you would not be able to afford the payments.
    I don’t think liberals got involved in this one bit. There does not seem to be any evidence that they were encouraging NAM’s to buy homes. The liberals did not encourage the banksters to create these crooked products. These are all just lies.
    The banksters created the crooked loans, that they knew would not be paid back, because they no longer gave a fuck whether the loan would be paid back or not. NAM’s had nothing to with it, other than that they were preyed on with these criminal loans by these fucking reptiles.
    Race realism or not has nothing to do with it AFAICT. Sure, George Bush said, now everyone can buy a home, or some shit like that. But he and the Republicans were in with the banksters.
    In fact, the Black organizations were worried about these subprime loans, balloon payments, etc. for a long time, dating back up to a decade before the crisis. They worried that they were unpayable and this would cause serious problems. Sure, a lot of Dems got caught up in this crooked shit too, but they were just on the side of the banksters. One of the bankster lines was “now any NAM can buy a house too!” A lot of Dems went along with that because it sounds cool and liberal but mostly they were just serving the same Finance Capital criminals.

  3. My parents (Mexican/Hispanic) bought an L.A. area home in 1969 for like $30,000. Even at that price, the bank made them supply reams of historical economic info, including an explicit reason WHY they were late on a simple credit card payment 5 years previous.
    I’m a full-on Mexican but let me just say, there is a strong undercurrent of stupidity and ignorance running rampant in the “barrio” part of my community regarding money. Subprime loans and manipulations remind me of the ridiculous “rent-a-rim” scams I see everywhere in East L.A. Capitalizing on the lower minority ladder’s need to compete with white America for stupid material bullshit. It’s no one’s fault, but it’s everyone’s.

  4. Robert,
    You wrote yourself, in an earlier posting, that if you lend money to a black (or a hispanic), you’ll most likely never see that money agian.
    You based that post on your own personal experience of dealing with ‘minorities’ and lending them rather small amounts of cash.
    Why do you think that their basic character changes if you lend them rather bigger amounts of cash, plus giving them more opportunity to do ‘fly-by-nights’?

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