The Daily Paul has been archived. Please see the continuation of the Daily Paul at Popular

Thank you for a great ride, and for 8 years of support!
1 vote

How Ruthless Banks Gutted the Black Middle Class and Got Away With It

The real estate and foreclosure crisis has stripped African-American families of more wealth than any single event in history.

The American middle class has been hammered over the last several decades. The black middle class has suffered to an even greater degree. But the single most crippling blow has been the real estate and foreclosure crisis. It has stripped black families of more wealth than any single event in U.S. history. Due entirely to subprime loans, black borrowers are expected to lose between $71 billion and $92 billion.

To fully understand why the foreclosure crisis has so disproportionately affected working- and middle-class blacks, it is important to provide a little background. Many of these American families watched on the sidelines as everyone and their dog seemed to jump into the real estate game. The communities they lived in were changing, gentrifying, and many blacks unable to purchase homes were forced out as new homeowners moved in. They were fed daily on the benefits of home ownership. Their communities, churches and social networks were inundated by smooth-talking but shady fly-by-night brokers. With a home, they believed, came stability, wealth and good schools for their children. Home ownership, which accounts for upwards of 80 percent of the average American family’s wealth, was the basis of permanent membership into the American middle class. They were primed to fall for the American Dream con job.

Black and Latino minorities have been disproportionately targeted and affected by subprime loans. In California, one-eighth of all residences, or 702,000 homes, are in foreclosure. Black and Latino families make up more than half that number. Latino and African-American borrowers in California, according to figures from the Center for Responsible Lending, have foreclosure rates 2.3 and 1.9 times that of non-Hispanic white families.
There is little indication that things will get much better any time soon.

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Freedman's Savings Bank

This reminds me of the Freedman's Savings Bank. So many savers got cheated out of their money by a government-chartered bank and never got compensated. This discouraged a whole generation of African-Americans from saving money. Just another piece of history that you never hear about or learn about in school...'s_Savings_Bank

Please visit and subscribe to!

So? as long as humans select leaders/mates by superficialities

and the media is controlled, horrible things like this can be diffused or even spun into blaming the other party.

Ain't getting any better

Ain't getting any better


while everyone is busy blaming America's woes on 'race'--

(rather than on an out of control puppet government that is crazy to keep wars going for globalist banksters)--

here is a 'right here at home' story that is heartbreaking.

it's hard to be awake; it's easier to dream--

If the "races" turn their

If the "races" turn their anger on each other then they won't turn their anger on the banks and they won't lobby Congress to take action against the banks

Follow me on Twitter for breaking news from a libertarian perspective