Posted on 02/12/2020 11:26:08 PM PST by knighthawk
WASHINGTON — At the height of the 2008 economic collapse, then-New York Mayor Michael Bloomberg said the elimination of a discriminatory housing practice known as “redlining” was responsible for instigating the meltdown.
“It all started back when there was a lot of pressure on banks to make loans to everyone,” Bloomberg, now a Democratic presidential candidate, said at a forum that was hosted by Georgetown University in September 2008. “Redlining, if you remember, was the term where banks took whole neighborhoods and said, ‘People in these neighborhoods are poor, they’re not going to be able to pay off their mortgages, tell your salesmen don’t go into those areas.’”
He continued: “And then Congress got involved — local elected officials, as well — and said, ‘Oh that’s not fair, these people should be able to get credit.’ And once you started pushing in that direction, banks started making more and more loans where the credit of the person buying the house wasn’t as good as you would like.”
(Excerpt) Read more at nypost.com ...
He’s a racist. But he was partly correct, liberal politicians forced the banks to give credit loans to blacks in redlined districts, and caused problems for everyone when they defaulted. Unfortunately, Bloomberg doesn’t blame democrats for the problems they caused.
At one point, 19% of mortgages handed out did not make the 1st payment.
Haha that would be epic!
[At one point, 19% of mortgages handed out did not make the 1st payment.]
Woohoo! They were 81 for 100!
(just kidding)
Bloomberg was mostly right on the mortgage crises,
Here’s a 50 second video of Andrew Cuomo (now gov of NY) as then HUD Secty, admitting that the LIAR and NINJA loans will default.
https://www.youtube.com/watch?v=9TWOPDN5Va0
and Bloomberg was originally right on stop and frisk. It may have been declared unconstitutional but it saved many black, hispanic as well as whites’s lives.
but that doesn’t make him palatable to us as a candidate, and hopefully will get his ass handed to him by the woke morons as you say.
NEVER FORGET this schmuck worked overtime to jam the 9/11 mosque next to Ground Zero, and he will confiscate every gun in the country if he gets the chance.
“At one point, 19% of mortgages handed out did not make the 1st payment.”
Pointing that out is racist./sarc
Bloomberg has spent millions of dollars just on rehabilitating his image with black voters (aka pandering), then all of this comes out. He might as well have lit that money on fire.
Maybe he can invent a fake gangster to puff up his street cred like Joe. He can call him “Soda Pop”!
Bloomberg is exactly right. The 2008 collapse was entirely government-created.
Wasn’t he still a “Republican” then?
The old bastard was right! NINJA loans! No Income No Job or Assets.
It was the Hah-vahd MBAs who responded by securitizing the loans, removing the risk from the banks, and hence any market feedback.
I remember reading of a New Mexico or Arizona or something dishwasher at a diner, who made $14k / yr, being approved for a $420,000 mortgage.
How can one of the very few on the planet to have made $70B with an honest product and company be so stupid?
Say something so idiotic and incorrect?
He is right that disparate-impact racial lending analyses and enforcement contributed to the environment of bad lending that helped to fuel the financial engineering that exaggerated government-forced bad loans and brought down the banks.
But redlining, which was a process of ruling out whole, very often black, neighborhoods for mortgages, was a major issue that did need to be addressed.
Bank charters for banks of scale are a little like taxi medallions—part of the cost of being granted such a charter is that you have to serve all neighborhoods. Where that went wrong is where quotas for serving neighborhoods, without consideration of individual ability to pay for the people served, were forced upon the banks.
Even then, liar loans and other derivative-driven mortgage products went way beyond banks’ handling of the bad loans they were forced to make by race.
Bloomie not only has issues with this kind of stuff, but he and his company have decades of bad behavior and statements re: women. So they’ll take his money and he will heavily fund the fight against Trump, but there is no way he can become the Dem nominee.
It is basically down to Mayo Cheat, Amy K., or another Hillary-type swoop in at this point.
NINJA loans were aggressively marketed far beyond minority borrowers and neighborhoods.
You are precisely correct. Securitization was the issue and banks went far beyond meeting their CRA requirements once it became the massive and dishonest business that it was.
On crime, on race, on common sense, Bloomberg seems to have made a number of true and mostly true statements. Which is a real problem for him now that he wants to the Democratic candidate for president. Can’t have any sort of truth-telling in the party of rainbows and unicorns.
Bloomberg is exactly right. The 2008 collapse was entirely government-created.
*************
So why are there foolish conservatives out there calling him a racist for telling the truth? When conservatives try to win elections this way, they’re going to lose because they are competing with the professionals.
From what I understand oh, he is correct.
That mosque was outrageous. And wasn’t the tribute to the Pennsylvania heroes on 9/11 search for of crescent moon like the sign of Islam?
Seriously I don’t know what sort of political incorrectness has infected the country, western Canada I mean English Canada, Europe and probably Australia too but I don’t know about that one.
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