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Maraya1969

(22,441 posts)
Thu May 2, 2013, 08:54 AM May 2013

The Ghetto is Public Policy.

It is very hard to accept this -- the wealth gap is not a mistake. It is the logical outcome of policy and democratic will. From the streets of Cicero on up, the point was to imprison black people in the black belt and then exploit them. The goal was pursued through public policy, private action, and open terrorism. The goal was accomplished.

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I spent the last week interviewing men and women, and the children of men and women, who bought their homes on contract in Chicago during the 1950s. Contract buying sprang up in Chicago after the federal government effectively refused to insure mortgages for the vast majority of black homeowners, even as it was insuring the mortgages of white homeowners, and encouraged banks to redline black and integrated neighborhoods. The import of mid-20th century housing policy -- along with private actions (riots, block-busting, contract lending, covenants) -- has been devastating for African Americans.




Buying on contract meant that you made a down-payment to a speculator. The speculator kept the deed and only turned it over to you after you'd paid the full value of the house -- a value determined by the speculator. In the meantime, you were responsible for monthly payments, keeping the house up, and taking care of any problems springing from inspection. If you missed one payment, the speculator could move to evict you and keep all the payments you'd made. Building up equity was impossible, unless -- through some Herculean effort -- you managed to pay off the entire contract. Very few people did this. The system was set up to keep them from doing it, and allow speculators to get rich through a cycle of evicting and flipping.

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This just sickens me.

8 replies = new reply since forum marked as read
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The Ghetto is Public Policy. (Original Post) Maraya1969 May 2013 OP
My parents had a contract in our lily white suburb AngryAmish May 2013 #1
This was lay-away, not financing Recursion May 2013 #2
well that sucked AngryAmish May 2013 #3
And unfortunately it was everywhere for minority buyers Recursion May 2013 #4
nothing happens by mistake datasuspect May 2013 #5
And of course this will be extended to poor white people too. zeemike May 2013 #6
The **OTHER** Golden Rule at work...... lastlib May 2013 #7
Slavery by another name ... Myrina May 2013 #8
 

AngryAmish

(25,704 posts)
1. My parents had a contract in our lily white suburb
Thu May 2, 2013, 09:15 AM
May 2013

It was common for poor/working folks of all kinds. The terms were quite clear. The transaction was recorded with the recorder of deeds. Do you mean to tell me that people would buy without getting a deed?

Recursion

(56,582 posts)
2. This was lay-away, not financing
Thu May 2, 2013, 09:18 AM
May 2013

The "buyers" didn't have a mortgage at any point, and couldn't find anyone to give them one.

Recursion

(56,582 posts)
4. And unfortunately it was everywhere for minority buyers
Thu May 2, 2013, 09:35 AM
May 2013

Most prominently African Americans, but also immigrants from all areas.

zeemike

(18,998 posts)
6. And of course this will be extended to poor white people too.
Thu May 2, 2013, 10:57 AM
May 2013

There is too much money in it for them to concentrate on just one race.

The outcome of it will be a new federalism...where you are basically in debt to the lords the day you are borne and will die that way.
Then all of us will have to avert our eyes and step off of the sidewalk to let them pass...they will own us.

Myrina

(12,296 posts)
8. Slavery by another name ...
Thu May 2, 2013, 11:11 AM
May 2013

Prison Labor.

1. Can't vote
2. Can't participate in society
3. Can be moved around at will ("overcrowding", nature of the crime, etc)
4. Work for pennies

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