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Elizabeth Warren – “Them That’s Got”, and Them That’s Been Had

One of the massive Catch 22’s post economic meltdown in the 00’s has been the FICA Score System. With the housing meltdown, millions of people went into either foreclosure or credit crisis. As jobs shrunk and people lost jobs, they were unable to pay their bills. Trying to get a job? In a go-round reminiscent of Ray Charles’ Song line “If you have to have something, before you can get something, How you get the first is still a mystery to me!” NOPE! Our HR Department has determined your credit is bad.

So if you got laid off, and can’t pay your bills, you can’t get a new job to pay your bills on time…Because you were laid off and can’t pay your bills.

Elizabeth Warren just launched her latest populist fight — and it impacts millions of American workers

Progressive populist Sen. Elizabeth Warren says checking prospective employees’ credit history is “discrimination” and is calling on American employers to end the practice, which she argues “bears no relationship to job performance and that can be riddled with inaccuracies.”

In a new Time op-ed, the Massachusetts senator, along with Tennessee Rep. Steve Cohen (D) warned that the common practice of employers checking the credit history of potential employees was wrongheadedly discriminatory against “hard working people,” noting that “one in five job-seekers could be rejected by an employer because their credit report lists a medical debt in default—even when they’ve paid off the debt in full and on time”:

Credit reporting companies that sell Americans’ personal data to potential employers have pushed the narrative that a credit history somehow provides insight into someone’s character. But, as even a representative from the TransUnion credit bureau admitted, they “don’t have any research to show any statistical correlation between what’s in somebody’s credit report and their job performance.” In fact, research has shown that an individual’s credit has little to no correlation with his or her ability to succeed in the workplace. Credit reports are not a way to screen out bad potential employees; they are just a way to discriminate against people who have fallen on hard times.

Not only are credit reports poor indicators of job performance, but in many cases they aren’t even accurate. The Federal Trade Commission (FTC) reported in 2013 that as many as 1 in 5 consumers could identify at least one error in their credit reports. That’s compounded by the difficulty in correcting errors—not only are consumers often unaware an error exists in the first place, but credit reporting agencies can be frustratingly slow to respond when it comes to fixing those mistakes.

A credit history, Warren suggested, was no proper indicator for a potential employees capabilities, and using it to help weed out candidates amounted to legalized “discrimination”:

For hardworking people struggling to make ends meet, the only way to get back on their feet is to find a good job and earn a paycheck. But even when they are able to sell their homes—often at a loss—or after they are forced to close their business’ doors or find temporary work, that bad credit history continues to haunt them.

And despite the often-desperate effort to find a job, many employers are unfairly shutting the door on applicants with less-than-stellar credit. We should call this what it is: discrimination.

As the Huffington Post noted, both Warren and Cohen have reintroduced the Equal Employment for All Act, which would ban employers from checking the credit reports of potential employees with a few exceptions. The legislation, the two lawmakers wrote, “makes sure that hiring decisions are based on an individual’s skill and experience—not on past financial struggles.”

“This is an issue of basic fairness,” Warren argued. “Americans should be able to compete for jobs on their merits, not on whether they have enough money to pay all their bills.”

“Much of America—hard-working, bill-paying America—has damaged credit,” the fierce Wall Street watchdog observed. “It is wrong to shut them out of the job market.”

 
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Posted by on September 15, 2015 in Democrat Primary, The Post-Racial Life

 

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Maintaining Systemic Poverty Through Credit

One of the ways young black folks who do all the right things are held back is by a system of predatory credit based on race. In America it is virtually impossible to generate Generational Wealth without credit as the principal vehicle for the middle class gathering that wealth has been their homes.

Back when I was a youngster making very good money in my first professional job, as well as bankable money in several side enterprises. I wound up at 22 years old with about $6k in savings  – which was a fairly tidy sum in the early 70’s for a guy just starting out. Now, my parents, despite being homeowners, never taught me about how to buy a house – but I recognized, with the advice of friends what a tremendous investment it could be. I owned an old ’75 Mustang I had bought used, and which ran pretty well. A fairly fancy new car at that point was about $3500 – and in terms of Pony cars that was one with a few upgrades in terms of horses. Working a side job as a DJ in the emerging Disco scene, I noticed the previously run down portion of town (Georgetown for those who know DC) was undergoing a transformation as hip white adults began to buy up the old Townhouses. Prices on the main drag were far beyond my reach – but 3 blocks off, there were a group of unrestored – dilapidated townhouses, which had been cut up into rentals.

The owner held the entire block. Most of the residents were black, which for white investors presented a problem in terms of doing anything less than taking out the whole block. Asked the owner if he would consider selling a smaller portion of the property. He agreed on a block of 3 houses for $21,000 or two for $17,000. I had $6k, and anyway you look at it that is nearly a 30% down payment on the block of 3. I would have to decide what to do with them – and decided, being handy with tools, I could renovate them and sell them while living in one.

Could not get a loan. Really didn’t matter that I made $12k a year in my “day job”, 30% or better down… Nyet!

Very few banks loaned to black folks in those days…And the few that did didn’t loan money to us 22 year old tech upstarts, because they had no comprehension that I would double my income in less than 2 years. No way to raise the money before he sold those houses as a block to a developed… They sell for about $2 million per house now.

Seems that things haven’t really changed. Meanwhile US Home ownership has dropped to its lowest level since 1967.

Getting a Home Loan Is Expensive—Especially for Black Women

A recent study in the Journal of Real Estate and Finance Economics finds that black home loan borrowers are charged higher interest rates than their white counterparts—and that black women pay the highest rates of all.

The three finance professors who authored the study analyzed the mortgages and demographic characteristics of more than 3,500 households during the height of the housing boom—2001, 2004, and 2007—using the Federal Reserve’s triennialSurvey of Consumer Finances. They found that on average, black borrowers were charged between 0.29 and 0.31 percentage points more in interest than whites, even after controlling for their debt and credit history.

The racial disparity was most pronounced for subprime borrowers who couldn’t qualify for low-interest mortgages (the left side of the chart above), with black borrowers paying interest rates that were at least 0.4 percentage points higher than whites in the same group.

Within this group paying the highest interest rates, black women paid the highest rates of all, at an average rate of 7.9 percent. But a statistically significant disparity persisted even among those who paid lower interest rates (the right side of the chart), the study notes. In this group, black borrowers paid interest rates between 0.1 percent and 0.4 percentage points higher than their white counterparts.

Over at Quartz, Melvin Backman explains how these disparities translate into dollars: According to Freddie Mac’s mortgage cost calculator, a $200,000, 30-year mortgage would cost a black man about $3,000 more than a white man over the course of the loan. A black woman getting the same loan would pay nearly $9,000 more than a white woman.

The study adds to a body of research showing that black mortgage applicants aremore likely to be denied credit than white applicants, and are more likely to be charged higher interest rates than whites. It also appears to confirm the racial disparities identified in lawsuits against several of America’s top mortgage lenders, including Wells Fargo and Bank of America’s Countrywide, which faced hefty payouts in a slew of discrimination lawsuits following the housing-market crash. The lawsuitshad even prompted the Obama administration to set up a new unit in the Department of Justice’s civil rights division to deal with the caseload.

But the new study also suggests more granular disparities between black and white borrowers. Among black borrowers, for example, younger homeowners without a college education paid some of the highest interest rates. And among those paying higher interest rates, black women, who already face stiff obstacles to economic mobility, were likely to be charged interest rate premiums two to three times that of what black men were charged. While they do not speculate about the causes of these racial and gender gaps between borrowers, the authors conclude, “it is the more financially vulnerable black women who suffer the most.”

Another Dream Deferred…

 

 
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Posted by on July 29, 2015 in The New Jim Crow

 

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Fear of a Black President…Obama and Statistics Collection Exposing Racism

Did you know the US Government is building a “Secret Race Database”?

And that President Obama plans to use it to tear down the foundations of white privilege, and ravage the very roots of Dixie?

Enjoy!

Obama collecting personal data for a secret race database

A key part of President Obama’s legacy will be the fed’s unprecedented collection of sensitive data on Americans by race. The government is prying into our most personal information at the most local levels, all for the purpose of “racial and economic justice.”

Unbeknown to most Americans, Obama’s racial bean counters are furiously mining data on their health, home loans, credit cards, places of work, neighborhoods, even how their kids are disciplined in school — all to document “inequalities” between minorities and whites.

This Orwellian-style stockpile of statistics includes a vast and permanent network of discrimination databases, which Obama already is using to make “disparate impact” cases against: banks that don’t make enough prime loans to minorities; schools that suspend too many blacks; cities that don’t offer enough Section 8 and other low-income housing for minorities; and employers who turn down African-Americans for jobs due to criminal backgrounds.

Big Brother Barack wants the databases operational before he leaves office, and much of the data in them will be posted online.

So civil-rights attorneys and urban activist groups will be able to exploit them to show patterns of “racial disparities” and “segregation,” even if no other evidence of discrimination exists.

Housing database

The granddaddy of them all is the Affirmatively Furthering Fair Housing database, which the Department of Housing and Urban Development rolled out earlier this month to racially balance the nation, ZIP code by ZIP code. It will map every US neighborhood by four racial groups — white, Asian, black or African-American, and Hispanic/Latino — and publish “geospatial data” pinpointing racial imbalances.

The agency proposes using nonwhite populations of 50% or higher as the threshold for classifying segregated areas.

Federally funded cities deemed overly segregated will be pressured to change their zoning laws to allow construction of more subsidized housing in affluent areas in the suburbs, and relocate inner-city minorities to those predominantly white areas. HUD’s maps, which use dots to show the racial distribution or density in residential areas, will be used to select affordable-housing sites.

HUD plans to drill down to an even more granular level, detailing the proximity of black residents to transportation sites, good schools, parks and even supermarkets. If the agency’s social engineers rule the distance between blacks and these suburban “amenities” is too far, municipalities must find ways to close the gap or forfeit federal grant money and face possible lawsuits for housing discrimination.

Civil-rights groups will have access to the agency’s sophisticated mapping software, and will participate in city plans to re-engineer neighborhoods under new community outreach requirements.

“By opening this data to everybody, everyone in a community can weigh in,” Obama said. “If you want affordable housing nearby, now you’ll have the data you need to make your case.”

Mortgage database

Meanwhile, the Federal Housing Finance Agency, headed by former Congressional Black Caucus leader Mel Watt, is building its own database for racially balancing home loans. The so-called National Mortgage Database Project will compile 16 years of lending data, broken down by race, and hold everything from individual credit scores and employment records.

Mortgage contracts won’t be the only financial records vacuumed up by the database. According to federal documents, the repository will include “all credit lines,” from credit cards to student loans to car loans — anything reported to credit bureaus. This is even more information than the IRS collects.

The FHFA will also pry into your personal assets and debts and whether you have any bankruptcies. The agency even wants to know the square footage and lot size of your home, as well as your interest rate.

FHFA will share the info with Obama’s brainchild, the Consumer Financial Protection Bureau, which acts more like a civil-rights agency, aggressively investigating lenders for racial bias.

The FHFA has offered no clear explanation as to why the government wants to sweep up so much sensitive information on Americans, other than stating it’s for “research” and “policymaking.”

However, CFPB Director Richard Cordray was more forthcoming, explaining in a recent talk to the radical California-based Greenlining Institute: “We will be better able to identify possible discriminatory lending patterns.”

Credit database

CFPB is separately amassing a database to monitor ordinary citizens’ credit-card transactions. It hopes to vacuum up some 900 million credit-card accounts — all sorted by race — representing roughly 85% of the US credit-card market. Why? To sniff out “disparities” in interest rates, charge-offs and collections.

Employment database

CFPB also just finalized a rule requiring all regulated banks to report data on minority hiring to an Office of Minority and Women Inclusion. It will collect reams of employment data, broken down by race, to police diversity on Wall Street as part of yet another fishing expedition.

School database

Through its mandatory Civil Rights Data Collection project, the Education Department is gathering information on student suspensions and expulsions, by race, from every public school district in the country. Districts that show disparities in discipline will be targeted for reform.

Those that don’t comply will be punished. Several already have been forced to revise their discipline policies, which has led to violent disruptions in classrooms.

Obama’s educrats want to know how many blacks versus whites are enrolled in gifted-and-talented and advanced placement classes.

Schools that show blacks and Latinos under-enrolled in such curricula, to an undefined “statistically significant degree,” could open themselves up to investigation and lawsuits by the department’s Civil Rights Office.

Count on a flood of private lawsuits to piggyback federal discrimination claims, as civil-rights lawyers use the new federal discipline data in their legal strategies against the supposedly racist US school system.

Even if no one has complained about discrimination, even if there is no other evidence of racism, the numbers themselves will “prove” that things are unfair.

Such databases have never before existed. Obama is presiding over the largest consolidation of personal data in US history. He is creating a diversity police state where government race cops and civil-rights lawyers will micromanage demographic outcomes in virtually every aspect of society.

The first black president, quite brilliantly, has built a quasi-reparations infrastructure perpetually fed by racial data that will outlast his administration.

Paul Sperry is a Hoover Institution media fellow and author of “The Great American Bank Robbery,” which exposes the racial politics behind the mortgage bust.

All of the above charts were from reports done by various research institutes, including Brookings, Pew, and Manhattan, as well as educationals studies by Universities such as Stanford. Hate to be the first one to tell this conservative racist clown…

But the data is already there.

 
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Posted by on July 19, 2015 in The New Jim Crow

 

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How is the GOP Like a Bank? Maher

 

Maher Says GOP Like Banks: “They Will Not Give A Black Man Credit”

HBO host Bill Maher said the GOP was like banks when it came to the death of Gaddafi. “They’re like the banks, they will not give a black man credit!” he told his “Real Time” audience.

“I gotta tell you, these Republicans, they will not give credit. They, they talked about this yesterday. They gave credit to the rebels, and to the British, and to the French. They would not mention the president. It was like they were on a game show and the password was ‘Obama.’ They are like the banks. They will not give a black man credit.”

 
 

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