Why Black Wealth Was Destroyed Under Obama
[This post is in response to Mike Green]
From the research and the conclusions, that said researchers have drawn, these are the factors and causation of plummeting Black wealth.
- Blacks of all economic classes lumped in with high risk loans, i.e. the Black middle-class given grade B loans, as if they were derelicts or of menial credit rating [Well’s fargo testimony in open court sheds light on this, when whistle-blowers testified that Wells Fargo management said, “target Black neighborhoods with high interest loans because Black people are financially unsophisticated”.]
- Blacks pay highest insurance premiums than whites
- Blacks pay higher costs for nearly every good and service, from food to housing, than do whites
Causation and Decimation of Black Wealth
- when the bubble crashed and ARM loans adjusted, it imploded 65% of all Black wealth
- Blacks have nearly no assets. And, what little wealth they do have is nearly 100% tied to their primary residence [which is NOT an asset, but only a sophisticated investor or someone financially educated would even understand that]
Why Obama vs Bush
- in spite of his own advisers telling him to specifically target legislation at Blacks, Obama took a mass appeal role, which ultimately would nearly 90% only affect white people, not Black people
- all legislation that took place to placate or help homeowners stay in their homes, occured in the latter half of the default scale, which affected white people more than Black people
- institutional racism reared its ugly head, even after Obama and friends commanded private banks to cease and desist foreclosure procedures and directed them to work with their lendees. Blacks were denied every opportunity to renegotiate their loans.
- this occurred on Obama’s watch, regardless of similar circumstances happening during the bush administration.
Please note that everyone that was predicting the crash said that the crash actually started 2001 – 2002, not 2008.
Nouriel Roubini or Nassim Taleb, as well as Peter Schiff & George Soros, correctly predicted the housing bubble collapse, which then exposed a much deeper bubble (a super-bubble in Soros’ terms) that was the entire solvency/credit trap that has taken over and the failure of 30 years of economic policy. Black swans in Taleb’s language can not be predicted. Both he and Roubini correctly predicted that said market was built on sand and would eventually collapse, but neither one of them got right precisely when it would happen (they both thought in 2003).
That squarely puts the entire Bush administration as having been handed this crash and dealing with it for two terms, not the revisionist history notion that everything was peachy during the Bush administration and he handed Obama a sack of pissed off badgers.
This latter part is what people constantly get tripped on. They all believe that Bush dealth with nothing financial for 8 years, until the very end.
Need I remind you that it was Clinton’s policies, demanding everyone be a homeowner, that led to the bubble during the Bush administration?
And, speaking of Clinton, everyone believes the propaganda that Clinton handed Bush a surplus. Just as fake as today’s jobless / unemployment numbers [which I hope you’re aware of] Clinton’s surplus was a complete fabrication, made-up by upping the intra-governmental holdings while paying down the public debt.
He handed Bush, every bit of a deficit as Bush did Obama and Bush sr did to Clinton before him.
Bush also dealt with a housing crash as the beginning of his administration. People forget these things. He dealt with the dot com bust, also.
Obama has been abysmal for Black wealth and makes absolutely no apologies for it.
As to the dearth of Black Americans in high-groth entrepreneurship, [or from my perspective any entrepreneurship] having any connection to job growth is only indicative of a lost potential of wealth that COULD be generated. That is a completely different discussion, than the one at hand.
Yes, Black enterprise is completely lacking and a direct correlation can be drawn between its lack and negative impact it has on Black wealth and Black “jobs”. At 1 in 36, versus 1 in 236 entrepreneurship of whites vs Blacks, no one can deny that Blacks are completely missing the economic boat [hell, we’re out to lunch completely].
However, this post is dealing with what wealth we have or had, presently.
Blacks lost 65% of their wealth during the Obama administration. The single largest drop in the history of the entire United States, including during the slave era. The 10%-20% of Blacks that were free during the slave era had more money, than all of the free Blacks right at this second.
That is insane.