Speaking of redlining, and the 2008 bank meltdown, and the 2009 Mike Bloomberg.

[guillaumeb]

These are separate, but related issues.

First:
Redlining refers to the practice of literally drawing a red line around majority minority neighborhoods. It was done in Chicago, where, in minority neighborhoods, banks would not make mortgage loans, and, insurance companies would not insure properties. These 2 actions made it very difficult for minorities to receive mortgages, and it made it very difficult for businesses to open stores in those same neighborhoods because even white owned businesses could not purchase insurance for their businesses.

Second:
The 2008 financial services meltdown, or bubble collapse, was caused in large part by banks making toxic loans. The financial people at these banks knew that these loans had repayment structures that virtually guaranteed that large numbers of loan holders would never be able to pay off the loans.

And the banks did not care because they knew that in the speculative bubble, they could always re-sell the loans, or foreclose and re-sell the properties. It was a win/win situation because the real estate speculative bubble was generating huge numbers of primary mortgages and refinances.

When Bloomberg spoke about redlining and banks being supposedly forced to make bad loans, he was either ignorant of what was happening, or he was promoting the victim blaming narrative that blamed poor people for being victimized by unscrupulous lenders.

Sorry Mr. Bloomberg, but that right wing narrative of blaming the victims and excusing financial fraud was exposed years ago.

[guillaumeb]

1. Finally, as part of the solution to this problem,

the financial industry received bail outs, often disguised under the heading "quantitative easing", while the homeowner victims lost their homes.

[Squinch]

2. Except you are misquoting what Bloomberg said. His REAL

quote had nothing to do with blaming the homeowners. He was describing predatory lending policies, and describing them accurately.

[pandr32]

3. +1

[guillaumeb]

4. Misquoting?

Michael Bloomberg said at the height of the housing crisis in 2008 that getting rid of "redlining," the biased housing practice that stopped banks from providing mortgages in low-income, largely minority neighborhoods, was to blame for the collapse.
Bloomberg's presidential campaign said Thursday the former New York mayor's comments, which were made at a Georgetown University forum in 2008, were meant to make the point that "something bad - the financial crisis - followed something good, which is the fight against redlining."
The 2008 comments were first reported by the Associated Press.

https://www.cnn.com/2020/02/13/politics/michael-bloomberg-redlining-housing-crisis/index.html

I could include many more links, but he said it, and he cannot unsay it or attempt to explain that what he said was not what he said.

[Squinch]

7. Except Bloomberg DIDN'T actually say that. Thats what CNN said. Here's what Bloomberg

said:

It all started back when there was a lot of pressure on banks to make loans to everyone," Bloomberg said at the time. "Redlining, if you remember, was the term where banks took whole neighborhoods and said, 'People in these neighborhoods are poor, they're not going to be able to pay off their mortgages, tell your salesmen don't go into those areas.'"

snip

Congress got involved, local officials as well."
They "said, 'Oh that's not fair, these people should be able to get credit.' And once you started pushing in that direction, banks started making more and more loans where the credit of the person buying the house wasn't as good as you would like," Bloomberg said during the forum.

snip

Then CNN says:
The financial crisis of 2008 was, in part, caused by banks and financial institutions offering predatory loans to homebuyers and others who were unable to fully pay them back.

[guillaumeb]

10. CNN was correct.

Bloomberg was putting 2 separate issues together, in part to excuse the financial industries.

[Squinch]

11. Sigh. Not even close, but I'm sure I'll never convince you. Have a nice day.

[guillaumeb]

13. And you.

[SWBTATTReg]

17. I agree w/ you Squinch. Bloomberg did not do the red lining, nor did he assemble ...

the toxic mortgage backed securities. The banks and insurance industries did, all in search of the almighty dollar. As a matter of fact, when the crisis was unfolding, I've never heard Bloomberg's name mentioned (because he was not involved). I heard Bush's name, I heard Paulson's name, I heard Obama's name (he was coming into office then after just being elected).

[Demsrule86]

5. I don't think many of you get it...I don't care. We are in a desperate situation and if Bloomberg

can beat Trump I am in...if Sanders is the only other choice because he won't beat Bloomberg.

[guillaumeb]

8. So should we ignore all of his statements that do not involve criticizing Trump?

I disagree.

Bloomberg can do his part by running advertising that exposes Trump's lies.

[jmg257]

6. Maybe someone should listen to his whole interview - he explains the reality very well...

“It all startedback when there was a lot of pressure on banks to make loans to everyone,” Bloomberg said at a forum that was hosted by Georgetown University in September 2008. “Redlining, if you remember, was the term where banks took whole neighborhoods and said, ‘People in these neighborhoods are poor, they’re not going to be able to pay off their mortgages, tell your salesmen don’t go into those areas.’”

He continued: “And then Congress got involved -- local elected officials, as well -- and said, ‘Oh that’s not fair, these people should be able to get credit.’ And once you started pushing in that direction, banks started making more and more loans where the credit of the person buying the house wasn’t as good as you would like.”

"Its not so bad when the market keeps going up..."

is a tiny part of this interview.

Its NOT just "redlining = the start of the issue", and he cetainly didn't say it's the blame.

Sorry, but half quotes out of context suck.

[guillaumeb]

9. He is equating redlining with the deliberate actions of the financial services industry

to target low income borrowers and sell their toxic loans.

The financial institutions deliberately created toxic mortgage loans and sold them to mainly minority buyers.

Now, of course, he must explain that the narrative he pushed then is being misunderstood.

Similar to his explanations about stop and frisk.

[jmg257]

12. Equating? Not clear on that, though he does explain Wall Streets roll in it all quote clearly.

As he saw it.

[guillaumeb]

14. "As he saw it" is the key.

I would say, as he chose to present it.

[jmg257]

15. It did seem a bit...tame...didn't it?...Considering the damage they did.

[guillaumeb]

16. And considering that the welfare directed to the financial services industry,

that was called quantitative easing, was in the trillions of dollars.