DN: (1/17/08) Subprime Crisis Causing African Americans Greatest Loss of Wealth in History

[Junkdrawer]

A startling new report has predicted the subprime mortgage crisis will cause people of color to lose up to $213 billion, leading to the greatest loss of wealth in modern U.S. history. The figure appears in a new report from United for a Fair Economy called “Foreclosed: The State of the Dream 2008.” The group accuses mortgage lenders of deliberately targeting the poor and people of color with high-cost loans. We speak with Dedrick Muhammad, co-author of the report.

http://www.democracynow.org/2008/1/17/report_subprime_mortgage_crisis_causing_african

Where's the Federal Bailout for These Folks?

[fed_up_mother]

1. In all fairness, they owned no "wealth" in this sub-prime mess

All they owned was a mortgage on a house that they couldn't afford.

They were screwed, and that needs to be fixed, but the title is a bit misleading if you know what "wealth" and "assets" are. The folks who pushed these loans on them need to be prosecuted, imo.

[Junkdrawer]

3. A lot of poor folks put what they had in the bank into those bad loans....

Chasing a dream...

[eowyn_of_rohan]

8. this is so sad

[rucky]

5. The full value of your home is an asset.

What you owe on it is a liability.

[fed_up_mother]

6. When you owe more than the home is worth, all you have is a liability

[rucky]

9. Hence the "loss of wealth"

Money's just going out the door without gaining equity.

[Junkdrawer]

2. 213 Billion from our society's poorest - Not worthy of Corporate News....

But if the Wall Street geniuses that caused the mess get in trouble, open up the Treasury...Is $700 Billion enough?

[LittleBlue]

4. There is no wealth here.

Equity is wealth, not assets offset by liabilities. You can own $6 billion in assets and have less wealth than a McDonald's worker.

[malaise]

7. They could have kept their savings in the bank

That's a lot of money to lose.