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To: ml/nj
Blacks had less income so they got smaller loans.

The current situation is that the average black person with the same income as the average white person has more outstanding debt and a worse record of repayment than his white counterpart. This is why - on average - a white person will get a cheaper loan than a black person of the same income - the white person is simply a better credit risk because of fewer outstanding obligations and a better repayment history. Note that decisions are not being made on the basis of "this guy's the average black person, so I will charge him more". They are made on the basis of "John Doe of indeterminate race has a high level of debt relative to income and a lousy record of repayment". It's only when we sort the data according to race and income, after the credit decisions are made, that we spot the differences by race despite similar income levels.

50 posted on 05/16/2009 10:23:06 AM PDT by Zhang Fei
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To: Zhang Fei
White Like Me (Eddie Murphy)
59 posted on 05/16/2009 3:52:11 PM PDT by dfwgator (1996 2006 2008 - Good Things Come in Threes)
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