[Notary Sojac]

Subprime lending to "minorities" is part of the problem, but far from the largest part.

When it all shakes out, the lion's share of bad lending will not come from the po' folks, but from;

(1) middle and upper class homeowners who cashed out hundreds of billions in paper "equity" via refinance/line of credit, and then pi**ed away the proceeds.

(2) builders and investors that built spec homes by the millions which turned out to be unaffordable unless bought on suicide loan terms.

All of this took place under the insane delusion that real estate could only go up....

Google "Gramm-Leach-Bliley Act" to learn about the law that really caused the credit meltdown.

[moneyrunner]

I don't want to be misinterpreted. You are probably right that minorities are not the majority of those who are defaulting on their loans (I do not have any data on this, but let's assume you are right). The reality is when you change the standards for lending, you change them for everybody, not just people who have dark skin.

The government pushed for more relaxed lending standards. And that is the reason for the mess we are in.