>Steve Sailer tells me that we're entering the "Diversity" recession--caused by the PC desire to expand home-ownership to minorities, regardless of their ability to pay.? It would seem that in order for this to be true, minorities would have to hold a decisive percentage of the bad mortgages.? Does anyone know the percentage distribution of sp mortgages by race??
Banks showed virtually no interest in this in the '70's when it was being pushed. That's when the USG came up with the mortgage securitization scheme to sweeten the pot. But even then, the scale was tiny until the current housing inflation.
How is innovation in ripping off various subsets of the working class fulfilling any mandate for diversity? Even if someone showed that the vast majority of sub-prime mortgages or defaults were among minority borrowers, how would that prove that a 30-year old press for "diversity" was the cause of the problem? It might simply indicate new frontiers in predation, piled on top of job discrimination, or it might just mean that housing inflation finally hit the Black or Latino part of town.
The assumption is that the point if this lending is to get people in houses, but it's not. It's to extract punishing interest rates from them, backed by good ol' ever-inflating U.S. real estate. It doesn't really have much to do with the borrowers, most of whom are able to somehow scrape together their punishing payments, even now. It has a lot more to do with lenders, flush with cash and desperate to lend.
Jenny Brown