DailyKos: Chi. Trib: Blame the Dark Skinned People

DailyKos (9/27/08)

Chi. Trib: Blame the Dark Skinned People

In tomorrow’s (9/28) edition of the Chicago Tribune, (link posted when it becomes available,) the paper’s editors weigh in on our nation’s financial meltdown….

The editorial is titled “Scapegoating markets,” and I will excerpt a small, fair-use portion here.  Bold faced emphasis is mine.

…Another factor was something deregulation critics omit:  a push to expand home ownership to borrowers who were once considered too risky. Economist Stan Liebowitz of the University of Texas at Dallas writes that “in an attempt to increase homeownership, particularly by minorities and the less affluent, an attack on underwriting standards was undertaken by virtually every branch of the government.”

That’s right, we’ll just ignore the fact that the vast majority of sub-prime mortgages were refinances to existing homeowners, not mortgages written to first time home buyers of any particular race.  And we’ll ignore that when Greenspan was asked by Congress about the wisdom of NINA (No Income No Asset) loans and other such practices (created not by any government branch but by our beloved private sector) he responded that they were marvelous new tools the market had created to expand homeownership to more Americans.  And we’ll just conveniently overlook that sub-prime mortgages aren’t nearly the problem that derivative and credit swaps are.  Obviously it was the fault of those dark-skinned people!


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