Minority Lending Blamed for Economic Crisis

By Alexis Garrett Stodghill, BlackVoices.com

As the official scapegoats of the capitalist system for centuries, it seems unsurprising that yet again black folks and minorities are being blamed for the actions of the mostly rich, white powerful men who control almost every aspect of this country's financial system. These are the real culprits--the ones in control--who are about to benefit from the bailout plan.

Neil Cavuto of Fox News has gone on record as saying "Loaning to minorities and risky folks is a disaster," during discussions of what precipitated our economy's meltdown. And he is hardly the only one singing in this chorus of blame.

In essence, many seemingly intelligent leaders are suggesting that it is not the heads of financial firms who are to blame for the sudden economic crisis. People skilled in financial knowledge and forecasting, who sought new mortgage volume at all costs so that they could bundle these loans to create massive profits for themselves by selling them as securities aren't to blame. No, no, no. Their motives were correct and pure. They are the victims!

It is the fault of the stupid "minority" credit-seekers who strong-armed these entities into giving them money that they knew in their hearts they could not and would not pay back. It was their ignorance of the terms of their loans. The problem wasn't, perhaps, the creation of overly complex mechanisms for lending, that were then intentionally not explained to trusting consumers who believed in the sales techniques of mortgage brokerage firms, which were preached like gospel. These "risky" customers knew that the entire financial system was resting on their shoulders, didn't they? How could they be so irresponsible?

Forget the fact that the officers of financial firms knew better than anyone else what effects on the average consumer their variable financial instruments would have. They knew better than anyone what people of normal means could afford. But the riches acquired by trading bundled mortgages were so great, they seemed to lose their self-control. And, for some reason, government overseers turned a blind eye.

The professionals paid to supervise the system failed to supervise. The financiers who profited from bad lending practices are about to get their bills wiped clean. The ones responsible are not being held accountable. And working class workers, blacks and minorities are being blamed. And people wonder why Rev. Wright has ever spoken badly about America.

Yes, let's blame the average Joe. And more importantly, let's blame the minority, for being stupid, poor and most of all trusting. Trusting that they could responsibly attain the American Dream of home ownership with the financial tools that paid professionals ensured them were within their reach.

More on Crisis from NPR News and Notes:

Loaning to Minorities... Is a Disaster

Bush Believes Bailout Plan Will Pass
The Financial Crisis is NOT New

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