2016 Postmortem
In reply to the discussion: (I'll regret this) starting around 1970, black wages started to rise and white wages started to fall [View all]Uncle Joe
(58,284 posts)I don't worship at the altar of FDR, he had his flaws just as every other President in U.S. History, but Glass Seagall was sound policy which did protect the public of all races from having their saving and pensions turned over to a massive casino.
FHA changed their redlining policies in 1968 thanks to LBJ, African American wealth did increase as result and much of that was lost after Glass Steagall was diminished and eventually removed.
I'm not suggesting the Fair Housing Act of 1968 was a total panacea there are still many institutionalized forms of racism that have and are taking place when it comes to lending money to minorities and minority owned businesses.
Black wealth had increased but much of it was lost due to policies promoted by Bill Clinton, the diminishing and removal of Glass Steagall being just one of them, the Commodity Futures Modernization Act of 2000, Welfare "reform," three strikes and you're out naming just a few more.
For black Americans, financial damage from subprime implosion is likely to last
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A Pew Research Center analysis last year found that the wealth of blacks plunged 53 percent during the recession, driven by falling home prices. The average net worth of a black household in 2009 was $5,677, according to the study, the lowest of any racial group. After years of record prosperity, homeownership rates among black Americans have plunged to the lowest level in 16 years. Unemployment has reached levels not seen since the 1980s.
Baltimore resident Kevin Matthews has worked hard to stabilize his finances after fighting off a wrongful foreclosure that drained his savings. He is paying his bills and studying to become a medical lab tech or researcher, but in the eyes of banks and lenders he is largely a three-digit number: 560.
That is Matthewss credit score. It is 160 points lower than it was five years ago. That means it will cost him more to get credit cards, pay for his education or eventually move into another house assuming he can qualify for a loan. It means Matthews faces years of struggling to hold on to the middle-class life he once thought was guaranteed.
According to FICO, a foreclosure can remain on a consumers credit report for seven years. It can lower a score by 85 to 160 points, a hit second only to bankruptcy.
https://www.washingtonpost.com/business/economy/for-black-americans-financial-damage-from-subprime-implosion-is-likely-to-last/2012/07/08/gJQAwNmzWW_story.html