Banking Industry Destroyed by Political Correctness.
Redlining had an underlying reason. It made little sense to invest in an area where, likely as not, the asset would be damaged or destroyed, confiscated as part of a criminal enterprise, or just plain lose value due to deterioration of the surroundings.
Funny thing, though. People who came here from other places (India, Viet Nam, Dominican Republic, Haiti, various African countries, eastern Europe) had saved and could pay cash for those dirt-cheap properties. They opened stores and other businesses, and in most cases the neighborhoods improved.
What prevented the American-born residents from doing the same? Nothing but their own behavior and attitudes.
What complete and unsubstantiated crap.
The Diversity Recession, or How Affirmative Action Helped Cause the Housing Crisis
Excerpt:
Uncovering the roots of the disastrous home mortgage bubble that popped last year will keep economic historians busy for decades. Yet, one factor has so far been largely overlooked: the bipartisan social engineering crusade to drive up the rate of homeownership by handing out more mortgages to minorities.
More than a negligible amount of the blame for the mortgage meltdown can be traced back to multiculturalism: government-mandated affirmative-action lending, demographic change, illegal immigration, and the mind-numbing effects of political correctness.
The chickens have finally come home to roost.
About half of all mortgages for blacks and Hispanics are subprime, versus roughly one-sixth for whites. Not surprisingly, the biggest home price collapses have occurred in heavily Hispanic cities such as Las Vegas, Miami, Phoenix, and Los Angeles. ...
The term "redlining" was coined in the late 1960s by community activists organizers in Chicago.