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<blockquote data-quote="ChicagoKid" data-source="post: 1222715" data-attributes="member: 84242">It wasn&#039;t deregulation here, it was government intervention in the housing market. In the 90s under Clinton, the wealth gap between black and white Americans wasn&#039;t budging. Because housing equity was the biggest factor in net-worth difference, the Clinton Administration essentially used private entities like Freddie Mae and Freddie Mac to backstop mortgage underwriting. This transferred all the risk from mortgage underwriters and banks to the Federal Government. So, naturally, these two entities went nuts to take advantage of a government-approved arbitrage. People who previously would have never been approved for a mortgage were getting one.The George Bush administration continued this program- in case anyone accuses me of partisanship -&nbsp; and once the economy faltered even a little bit, the whole house of cards collapsed. Then Obama bailed out the banks but left homeowners to wither on the vine. So 30+ years after Clinton started the program, black and white wealth is higher now than before the program because the 2008/2009 crushed black homeowners&#039; equity.</blockquote>

[QUOTE="ChicagoKid, post: 1222715, member: 84242"] It wasn't deregulation here, it was government intervention in the housing market. In the 90s under Clinton, the wealth gap between black and white Americans wasn't budging. Because housing equity was the biggest factor in net-worth difference, the Clinton Administration essentially used private entities like Freddie Mae and Freddie Mac to backstop mortgage underwriting. This transferred all the risk from mortgage underwriters and banks to the Federal Government. So, naturally, these two entities went nuts to take advantage of a government-approved arbitrage. People who previously would have never been approved for a mortgage were getting one. The George Bush administration continued this program- in case anyone accuses me of partisanship - and once the economy faltered even a little bit, the whole house of cards collapsed. Then Obama bailed out the banks but left homeowners to wither on the vine. So 30+ years after Clinton started the program, black and white wealth is higher now than before the program because the 2008/2009 crushed black homeowners' equity. [/QUOTE]

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