JahFocus CS

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Intro:

How Obama Destroyed Black Wealth
By Matt Bruenig, Ryan Cooper
The nation's first African-American president was a disaster for black wealth.
GettyImages-95704141.jpg

Angela Walker (3rd-L) and her daughter Nazarin (2nd-L) listen to local officials speaking on home foreclosures at their home in Suitland, MD in 2010. Walker was being threatened with foreclosure and had sought help from Rev. Jesse Jackson's Rainbow PUSH Coalition. Alex Wong / Getty Images
The Obama presidency was a disaster for middle-class wealth in the United States. Between 2007 and 2016, the average wealth of the bottom 99 percent dropped by $4,500. Over the same period, the average wealth of the top 1 percent rose by $4.9 million.

This drop hit the housing wealth of African Americans particularly hard. Outside of home equity, black wealth recovered its 2007 level by 2016. But average black home equity was still $16,700 lower.

Much of this decline, we will argue, can be laid at the feet of President Obama. His housing policies led directly to millions of families losing their homes. What’s more, Obama had the power — money, legislative tools, and legal leverage — to sharply ameliorate the foreclosure crisis.

He chose not to use it.

Excerpt:

Black Wealth Destroyed

Even before the crash, decades of discriminatory policies had depressed African-Americans’ housing wealth. New Deal federal housing subsidies — the bedrock of the postwar middle class — largely locked out African Americans. Racist housing covenants forbade neighborhoods from selling or renting to black families, back up by the threat of riot. Black families that could buy were often brutally exploited by contract sellers.

The mortgage bubble fostered similar abuses. Originators, looking for anyone to take subprime mortgages, handed them out to disproportionately black lower-class people, and steered black middle-class families who would have qualified for ordinary mortgages into subprime loans as well.

Former Wells Fargo employees later testified that the bank deliberately tricked middle-class black families (who they called “mud people”) into subprime “ghetto loans.” Overall, a Center for Responsible Lending study found that from 2004 to 2008, 6.2 percent of white borrowers with a credit score of 660 and up got subprime mortgages, while 19.3 percent of such Latino borrowers and 21.4 percent of black borrowers did.

The effects of the foreclosure disaster are starkly apparent in Survey of Consumer Finances data. To start, the homeownership national rate shows a marked decline over almost the whole Obama presidency, reaching the lowest rate since 1965 (before slightly rebounding).



Broken down by race, the overall story for homeownership is similar for all groups, but black homeowners started lower and stayed lower than white ones, with no rebound at all from 2013 to 2016.



However, the total homeownership rate can be misleading in that it includes people with negative equity, which is worse than owning no home at all — it is merely “a rental with debt.” After the crisis, the percentage of black homeowners with negative equity exploded by twenty-fold, from 0.7 percent to 14.2 percent — and unlike white families, did not reach its peak until 2013.



Next we examined home equity by race. Here is average white, black, and Latino home equity by year:



The sharp decline from 2007 to 2013 is readily seen, as well as partial recovery through 2016, and the large racial wealth gap. Average white home equity in 2016 is 3.5 times greater than the same black figure, and it has regained 84 percent of its 2007 value, compared to a black figure of 73 percent.

Then there are the distributional effects. Home ownership makes up a much larger percentage of black and Latino wealth than it does white wealth, and a much larger percentage of middle-class wealth than top wealth in all racial groups. On the eve of the recession, middle-class families tended to hold 50 percent to 70 percent of their wealth in home equity, while the wealthiest 10 percent of families held 15 percent to 30 percent of their wealth in home equity.



Given these differences in wealth portfolios, bailing out financial assets after 2008 while allowing homeowners to drown directly concentrated the national wealth into the hands of the richest white families.

Between 2007 and 2016, the wealthiest 10 percent of white families saw their wealth expand by an average of $1.2 million (21.6 percent), the next wealthiest 10 percent of white families increased their net worth by an average of $141,000 (15.5 percent), and the top 10 percent of black families grew their wealth by $78,000 (8 percent). Everyone else experienced wealth declines as high as 40 percent.



Mass foreclosures have severe ripple effects. People who lose their homes are at greater risk of job loss and falling into poverty, and are more likely to commit suicide. Nearby homes lose value, as foreclosed properties are often blighted. A 2013 Center for Responsible Lending study estimated that properties in proximity to a foreclosure shed $2.2 trillion in value — and that half that loss was in communities of color.

The decision to hang homeowners — especially black homeowners — out to dry was a catastrophe.

Full article
 

Sankofa Alwayz

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I was one of the idiots caught up with the symbolism of this charlatan's rise to power. Trump winning woke my dumb ass up. Better late than never, I suppose.

Same, tho I was already woke to this before Trump. Can’t lie tho, I was somewhat surprised he won :ehh:

Also, :francis: at the very low traction this thread has gotten.
 

Sankofa Alwayz

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Someone posted it in HL after I made this and the Democratic Party c00ns were outraged by it. :mjlol:

:heh: Those are the type of Negroes that think the only bad white people are those who’re conservative and/or vote Republican or randomly scream racist rhetoric from a pickup truck or on reddit.

Let’s be honest, only reason Black folks love Obama so much is because he’s not dark skin and he was “accepted” by cacs, as if that type of shyt hasn’t happened before in local and state elections, judicial appointments, and in foreign Black countries where the West likes to probe its business in :aicmon:

The same President Obama who called Black people “thugs” to international media while we were making a stand in Baltimore. Also the same Obama who clearly stated that he’s not for reparations of any degree for Black Americans but would go out of his way to justify further reparations for the Jews.

Symbolism, political immaturity, and cognitive dissonance....Our people can be such fools sometimes :snoop:
 
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Everything the article talks about....these were problems that existed long before President Obama and will continue after he's gone. No matter what his intentions were, he wasn't stopping shyt. Once he got into office and had the nerve to have some backbone, the GOP decided he was gonna be a one-term president, or die trying. After that, the House and Senate flipped...2 years into his presidency and that was it for him. We really don't KNOW what Obama would have done given free reign because the GOP obstructed everything he tried to do, good or bad.

All of this "Obama is Evil" stuff is how Trump got elected. Blur the lines so it all seems the same and then either give up and not vote or vote for Drumpf. Hillary is flawed but if you were hiring for a job and the only question was 'who will do the best work'...there's no way Drumpf makes more sense than Hill. Long-term Drumpf might be good in waking people up, but I don't think people sitting out were thinking that far ahead. Everyone got into their feelings and and lets this orange-cheeto immigrant with 4 european grandparents take over.
 

KingSlime

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you do know Obama is not the only one who made decision right
During the financial crisis the executive branch of the government, which Obama had direct control of, damn near nationalized the two largest issuers of mortgage backed securities in the country/world. He had the final say on how over $1 trillion worth of assets would get shuffled and made the conscious decision not to provide relief to black homeowners, who were disproportionately targeted for the sub prime mortgages that caused the whole mess to begin with. The destruction of black wealth is on Obama 100% and it was well within his power to stop or remedy it
 

jackson35

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During the financial crisis the executive branch of the government, which Obama had direct control of, damn near nationalized the two largest issuers of mortgage backed securities in the country/world. He had the final say on how over $1 trillion worth of assets would get shuffled and made the conscious decision not to provide relief to black homeowners, who were disproportionately targeted for the sub prime mortgages that caused the whole mess to begin with. The destruction of black wealth is on Obama 100% and it was well within his power to stop or remedy it
it foolish of you to believe that in spite of the fact he has control, his decision does not simply come from him, he has people to consult and people to persuade to make a decision like that. the sub prime mortgages crises has to be pit on us, who should have understood on paper that it was not a fair arraignment.
 

KingSlime

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it foolish of you to believe that in spite of the fact he has control, his decision does not simply come from him, he has people to consult and people to persuade to make a decision like that. the sub prime mortgages crises has to be pit on us, who should have understood on paper that it was not a fair arraignment.
If by "us' you mean Americans as a whole then sure. Black people weren't more affected because we are less financially literate, as a matter of fact the average black person who got sub prime loans had better credit than the average white person. Black people were systemically targeted in a scheme that was already engulfing every single major financial market across the country in which nobody made it out safe. And yes the decision fell on him. Just because he chose to act on behalf of the major banks and their representatives who made up his cabinet during the financial crisis doesn't mean he did it because was beholden to them. He had all of wallstreet by the balls on a vicegrip but bailed them out because they represented his own class interests. It's not even like the total restructuring of the financial system so as to be less predatory to the average American is without precedent. FDR actually did what Obama was supposed to do with the banks during the great depression pretty much unilaterally and what followed was the largest expansion of the middle class in the history of the world. There's no excuse for not following that model
 

jackson35

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If by "us' you mean Americans as a whole then sure. Black people weren't more affected because we are less financially literate, as a matter of fact the average black person who got sub prime loans had better credit than the average white person. Black people were systemically targeted in a scheme that was already engulfing every single major financial market across the country in which nobody made it out safe. And yes the decision fell on him. Just because he chose to act on behalf of the major banks and their representatives who made up his cabinet during the financial crisis doesn't mean he did it because was beholden to them. He had all of wallstreet by the balls on a vicegrip but bailed them out because they represented his own class interests. It's not even like the total restructuring of the financial system so as to be less predatory to the average American is without precedent. FDR actually did what Obama was supposed to do with the banks during the great depression pretty much unilaterally and what followed was the largest expansion of the middle class in the history of the world. There's no excuse for not following that model
are you forgeting the percentage of black folks that work in that industry? do you know if he went in the direction that your suggesting it would devastate a large percentage of us
 

KingSlime

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are you forgeting the percentage of black folks that work in that industry? do you know if he went in the direction that your suggesting it would devastate a large percentage of us
:gucci:
Nevermind the fact that black people make up like only 6% of those in finance in what reality did black people not already get devastated due to Obama p*ssyfooting around? Are we even reading the same article? If you're going to just keep caping for Obama and deflect any and all criticism then there's nothing constructive in talking on this further
 
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