“What has happened to our wealth?”: Author Aaron Glantz on the housing crisis and modern redlining


There were a lot of predatory loans going
around in the housing bubble. And at this point, we all know that. What I wanted to know was when there were
families who got these so-called NINJA loans — right? — no income, no job, no assets, no problem
— or these loans that had these teaser rates and then reset at a higher level, and you
were told, “Oh, you can just refinance,” or the main character in my book, Sandy Jolley,
whose family owned their home outside of Los Angeles for more than 30 years, until they
got a reverse mortgage that sapped their equity — and all of these families lost their homes
to foreclosure. What I wanted to know was what happened after. Right? We’ve been stuck in this country on this
trauma of 2007, 2008, 2009. But now here we are in 2019. Ten years have passed. The unemployment rate is low. The president tells us everything is great. But people don’t feel like everything is
great. So, you know, we have jobs, but what happened
to our wealth? They took it. That’s what happened. And also, the disproportionate impact that
this loss of equity in all these homes had, especially on the African-American and Latino
communities, which were even more dependent on home equity for what little wealth they
had or net wealth they had. What we see is that banks, like Steve Mnuchin’s
bank, concentrated their foreclosures in communities of color. And then, when they started making loans again
when the economy improved, they didn’t make loans to those communities. So they wiped out the wealth of these communities
with foreclosure, but then, over a five-year period, Steve Mnuchin’s bank made three
loans to help African Americans buy homes and 11 loans — this is national bank — helped
three African Americans and 11 Latinos buy homes over five years. And now Steve Mnuchin, as the treasury secretary, is in charge of regulating every American bank. And so, he and Donald Trump picked one of
his deputies at OneWest Bank, Joseph Otting, for this position called comptroller of the
currency, which basically is America’s top bank cop, who’s in charge of enforcing laws,
like the Community Reinvestment Act, that are meant to stop redlining. So, this bank, which didn’t make any loans
— hardly any — to communities of color is now in charge — you know, this leadership,
under President Trump — of making sure that these anti-redlining laws are followed.

21 comments on ““What has happened to our wealth?”: Author Aaron Glantz on the housing crisis and modern redlining”

  1. joysblues says:

    Dimwit. The unemployment rate is NOT low. Lost me right there.

  2. achaasejr says:

    Wealth where did it go? Since Reagan mandated trickle down it went trickled up to the top 1% where it is being spent like drunk sailors on shore leave 1% heirs.

  3. 22grena says:

    Zionists have stolen it.

  4. Alex Almeida says:

    🍻

  5. morpheousx says:

    Tell black people something we don't already know!

  6. Mika Mitena says:

    The criminal Demonrats and republitards Exploited, PILLAGED & Stolen than Squandered Every Bit of any and all wealth that they could slip their slimy hands on!!

  7. Fluffy Bunny says:

    Never ever get a reverse mortgage, one thing that is hidden from home owners is they can outlive the reverse mortgage and end up on the street n their most senior years.

  8. roy hunt says:

    BLACK people got hit the hardest, stop trying to tie our struggle with everybody else.

  9. Richard Edwards says:

    The democrats stole it to pay for the illegals and the parasites living of the American taxpayers!!!!

  10. Larkinchance says:

    Wall St. is not about developing the economy, it's about profit taking…

    Sometime in the late 80's they were wondering, “Where do American keep their wealth?” The answer is in their houses..

    Private banks constructed loan traps, designed legislation and paid off politicians like Joe Biden, Phil Graham and Bill Clinton to pass the banking modernization act, These were bad loans and they packaged them and sold them to pensions funds and then they imploded.

    They destroyed lives and not one banker went to jail..

  11. Poochie says:

    Let's be clear, that was Barack Obama who hired the Goldman Sachs Banksters to rip off the small people,also called,politics of change,
    So, thanks Mr. Obama! Who by the way, apparently now has a net worth of around $80 million.

  12. ronkirk50 says:

    The financial sector which represents such a large portion of our economy continues to just push money around making billions and sucking money away from productive uses such as investments in manufacturing. It is time for a tax on every Wall street transaction to slow down all the fast trading that goes on and only makes a few Wall street thieves richer.

  13. Fairness Equality says:

    All started under Obama’s watch ,believe it or not and I am not from the right .
    Me as a small business owner in those days that suppose to be the times that banks were hurting people I could walk in and walk out getting a relatively low interstate rate loan for my business
    Then Obama gave trillion to the banks with almost zero interest so they pass it to small business and people who needed it ,but guess who got the low rates loans the third party small banks who pass it to people like me with 15 to 20% interest and if you want to get a conventional low interest rate loan you never qualify because of all those regulations but the loan shark companies get those loans and add 15%?on top of that and I get qualified in 60 minutes
    Therefore there is nothing left for me to spend in my community or pass it to my m employees
    That’s where our wealth went
    It went to the banks ,it’s funny when you tell people banks are killing our society they think we are talking about that $35 that they charge them here and there ,no that’s just to pay their expenses to run their operation ,the rest is the tens of thousands that people like me had paid then and is gone ,you never see it back in circulation ,is gone to be invested in other developing coutures were they don’t even pay tax on what they make
    Our problem is that we have let some people running our country who have not even a cell of American in their body ,for them their Country is where they make their money ,they careless if America becomes a third world country as long as they double they’d wealth in a year

  14. Richard Edwards says:

    Who is this dimwit he's talking out of his ass !

  15. Smith says:

    The money went to the elite.. you morons.

  16. Barbara Lindhjem says:

    The wealth rose to the top one percent. Go back to FDR's tax rates.

  17. James,T Quirk says:

    Americans are being FARMED by the rich, it's all about bum's on seats, buying stuff from the rich, so you can continue to work for them, it works better than feudalism for them because, because you organize your own housing & food, health care, etc, and if you get rebellious, there are politicians to blame ….

  18. MrShiggitty says:

    Is this a joke? One generation controls the wealth of the USA…

    The baby boomers control the houses, they control the stock market, they control the disposable income, they control Congress, they control the Presidency, they control the Supreme Court. Oh and they've taken voting rights back ~50 years of progress, BOOMIN!

    The notion of 99% vs 1% is a false hood. It's home owner vs non-home owner. (Grats to you if you got a house before 2008, otherwise screw you.) Which is basically old Americans vs young Americans. The boomers voted for themselves and themselves only for 40 years, this is the end result of that.

    We're all the way back to pre-civil war levels of inequality / land inequality / debt / indentured servitude. This is all coming from the generation that received socialism for themselves, then said no for anyone else. This is the end result of the 1980-2020 Milton Friedman trickle down experiment. The boom squad experiment on capitalism. They did fantastically well as a generation, all future generations got destroyed. BOOMIN!

  19. Iryna Rychko says:

    Now that’s real horror right there

  20. Boyd Gilbreath says:

    Everyone who is not asleep knows that everything is not great.What American would buy anything if the salesman simply said it was "great"or "perfect". Americans are distressed because they are not stupid, they know in their hearts that their lives are being destroyed a piece at at a time every single day while the government steals every dime that can be pried loose.

  21. Marshall Kinnaird says:

    Of course the money is gone because all the generations before the Millennials wasted it and I got into debt that's why the countries in 22 trillion dollars of debt.

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