From Farai

Loaning to Minorities ... Is a Disaster

... at least according to Fox News host Neal Cavuto.

The liberal watchdog organization Media Matters posts this on their website:

Neil Cavuto, host of Fox News' Your World, conflated giving home mortgages to minorities with risky lending practices, suggesting that efforts to increase homeownership among minority borrowers contributed to financial problems at Fannie Mae and Freddie Mac. Discussing the decision by the U.S. Treasury Department and the Federal Housing Finance Agency to place Fannie Mae and Freddie Mac into conservatorship, Cavuto asked Rep. Xavier Becerra (D-CA) on September 18, "[W]hen you and many of your colleagues were pushing for more minority lending and more expanded lending to folks who heretofore couldn't get mortgages, when you were pushing homeownership ... Are you totally without culpability here? Are you totally blameless? Are you totally irresponsible of anything that happened?" Cavuto later said, "I'm just saying, I don't remember a clarion call that said, 'Fannie and Freddie are a disaster. Loaning to minorities and risky folks is a disaster.'"

Thanks to the blog, This Black Life, for the link to the story above.

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massive fraud involving the sub-prime mortage market is at the heart of the current finanical crisis. but remember this represents about 5% of these type of loans - in a market with a total value of $14 trillion in the usa. these bad loans were turned into 'securities/stocks' & bundled with other investment vechicles (all known history). what is also true is the fact that over 65% of all 'bad & over-priced' sub-prime loans were agreed to by usa negro 'citizens/borrowers' - who freely signed the loan documents. this did not happen over-night but has been 'financial sore' building into an 'credit ulcer' for the past 12 to 15 yrs. it gives lie to the ideology that blamed the lack of wealth creation on the part of many usa blacks as due to racism but now the truth is shown for all to see: many usa adult blacks are financially illiterated not to mention reading challenged to the extreme ...priceless!!!

Sent by dirtyblues | 7:58 PM | 9-25-2008

I'm sorry, dirtyblues, but your writing and grammar shows that if anyone is reading challenged, it is you. You certainly can't say that for all black people, but I can tell you now, reading your post, that you are in need of all kinds of education.

Sent by Lexis B | 10:57 AM | 9-26-2008

save all that drama...
regardless of this critic's 'challenged' attempt -- the facts remain the same: cavuto basic opinion is correct. well-meaning entities pushed lenders to approve bad loans to many 'unqualified' borrowers (mostly black citizens) which has resulted in the credit mess that the feds are attempting to dig the nation out of! that is the 'tar-baby' in the room that no one is willing to address ...priceless!!!

Sent by dirtyblues | 11:37 AM | 9-26-2008

OH, here we go,

Black people are the cause of this financial crisis.

Isn't that rich. What next, cross burnings?

Sent by Lyle K. Deere | 12:36 PM | 9-26-2008

Those minorities should be punished! How dare they pull the wool over the eyes of the worlds' biggest banks! I'm sure the minorities were plotting for decades.

Racism is the real economic disaster, people.

Sent by Ezra | 12:40 PM | 9-26-2008

massive levels of 'financial illiteracy' are normally at the core of most economic disasters that have been recorded in human history -- & not the 'outer coloring' of human beings skin. again many 'well-meaning entities' (private & public) honestly believed (without any shred of proof) that the poverty among usa blacks had at its core the lack of a willingness (racism) on the part of the usa credit market -- to give home loans to many 'home-wanting' usa blacks. the truth that is for all to see: most of the blacks who got sub-prime loans were completely 'un-qualified' for the amounts of monies their were loaned: these toxic loans were turned into securities/stocks & bundled to unsupecting commerical banks -- which having uncovered the level of this massive fraud -- have restricted credit to its largest borrowers: thus the current downturn on wall street ...priceless!!!

Sent by dirtyblues | 2:15 PM | 9-26-2008

I think if you really look around people of all races got into bad loans. Americans in general are financially illiterate. Some people should not have been granted credit at all and some were just given more than they could really afford. I think the bigger issue is that we should teach financial literacy in our schools. That was people can know when they are being fast talked into the wrong things. I think that might make a difference in the future.

FYI, Neal C is an idiot for making that comment. Scratch that, it was really a racist remark. That is what I expect from Fox "news" though. Sigh.

Sent by Mel Mel | 3:25 PM | 9-26-2008

Dirty Blues, it obvious that your outlook on life and the American people is perverted and you are full of hate and bitterness. So you are saying that "African Americans" are also to blame for the falls of Wamu, Merrill Lynch and other banks that went under in the last couple of months? No its greedy executives in these corporation taking home million dollar salaries trying to increase their bottom line. AND I work for one of the top commercial and residential companies in the USA and my books show that it was a combination of all ethnics groups, including whites who were given sub prime loans and are now in a financial rut....get a life and get a clue. Instead of finger pointing and saying who is to blame why don't you man up and help your fellow citizen instead of spitting out venom and poison...

Sent by Tiredofdrama | 3:30 PM | 9-26-2008

What is almost painfully apparent is the selective ignorance of folks like dirtyblues, who conveniently forgets that the banks were the ones who facilitated the questionable companies that offered the loans to "risky" black people. I can agree that many blacks are financially "illiterated", yet can also say these banks depended on such ignorace for years and actually tried to exploit it causing this crisis and it just came back to bite them on the a$$. I personally thought I'd be able to refinance in couple of years and actually made improvements to my house, but lo and behold, I couldn't get the same company to appraise it beyond the initial appraisal (go figure!)
It seems the whites are returning to the times of blaming their illicit actions on their victims. What's next is the justifying them through bible scripture.

Sent by Dr.Of Intell-Act | 7:03 AM | 9-27-2008

Help me out here, I'm black, My wife and I made over $135,000 last year, I have worked for the same company for thirty six years, My wife for thirty years, Our mortgage is up to date. The homes in our neighbor are worth around $375,000. People who have lost their homes here are White. Now tell me again who had the bad loans?

Sent by Hr Goodwin | 9:05 PM | 9-28-2008

you can,not make black people your scape
goats all the time you have blame yourself to for your own problems you make for yourselves.

Sent by mary | 11:13 AM | 9-29-2008

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