[lbo-talk] origins of the housing boom

shag carpet bomb shag at cleandraws.com
Mon Aug 29 21:04:20 PDT 2011


At 04:25 PM 8/29/2011, Eric Beck wrote:
>On Mon, Aug 29, 2011 at 2:55 PM, Indian Jones
><lburgindianjones at gmail.com> wrote:
>
> > What is your point in this confusion? Deregulation and market fetish
> > provoked financial exploitation.
>
>No doubt the bubble created some exploitation (though you should
>really use another word) of consumers, but is that all that happened?
>How many people actually used deregulation to their advantage, by,
>say, getting teaser mortgages that were way cheaper than any regular
>mortgage or rent they could have found? What number of subprime
>mortgagees (aka black and brown people and women) were able to live in
>a style that their place in production would never finance? Yes,
>people were then kicked out of their houses, and yes that probably
>sucked, but I'd venture that to most in the subprime class, this
>wasn't a deal-breaker (as the saying goes); I'd tend to assume they
>knew this was a possibility, that it was part of their risk
>calculations, rather than that they were dupes of finance.
>
>And if it all crashed, so fucking what. It sucked anyway.

i'm all for recognizing that people aren't social dopes of systems that operate behind their backs, but I also think it's a lot more complicated than simple cost-benefit analyses.

i've got a bunch of comparison examples of how people end up reinscribing their own oppression, etc. but it's never a simple matter of them thinking they can scam the system or that they can somehow benefit. indeed, thinking about it, most of the examples that come to mind are of people telling others that they are scamming the system but in fact they aren't at all. (the women in Kathrin Edin's study of welfare moms; the poor white kids in Ain't No Makin' It; the long-term unemployed in the ethnography of a deindustrializing Ohio city, Magic City;) I'd detail them but I'm not sure if it's worth the extensive side trip. I guess I'll just ask, when you bought during the bubble, did you think of buying a house as something you could just walk away from later?

to the point about the category "sub-prime". we had a client who was a mortgage lender. his big thing was that lots of people were being conned into taking sub-prime loans when they didn't have to. he had this whole program set up to show people how they were being conned into the subprime thing, and show them how it was just as easy to get loans at the prime rate - and his company would help them do it.

i'm not so sure "subprime borrowers" necessarily means people of color and lower income white women.

-- http://cleandraws.com Wear Clean Draws ('coz there's 5 million ways to kill a CEO)



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