Denying loans to poor people is normal underwriting, you're *supposed* to decide whether to give them a loan based on their income and credit history Redlining means throwing out applications before you even look at the numbers because the address is in a "Black neighborhood"https://twitter.com/michaelharriot/status/1227846159319867393 …
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Denying loans to people because you don't think they have the money to pay them back is the normal way loans work You may not like that, but "redlining" is a completely separate issue from that, and both the class-first left and the pro-redlining right love muddling this issue
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You end up with people talking like you can't ban redlining without going to Full Socialism Now, like denying a mortgage because someone doesn't have a steady job is exactly the same thing as throwing out all the applications that come from Harlem It's really obnoxious
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It's like the argument from Jacobin that you can't have reparations for chattel slavery because ALL labor under capitalism is slavery so if you give reparations only to descendants of chattel slaves you're defending the general oppressive framework of capitalism
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Anyway it's precisely this conflation that led to people saying anti-redlining measures led to the housing bubble that popped in 2009 Like people were really asking for underwriting to go away completely rather than everyone being evaluated by the same rules
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They play this game a LOT Black people ask "Can we just be judged by the same rules as white people" "What's that? You want there to be NO RULES? You want us to just give away everything for FREE? You want chaos in the streets?"
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Anyway, the 2009 foreclosure crisis was caused by underwriters approving a lot of loans that should simply never have been offered and this shouldn't be controversial on the left (if you want to give things to the poor you should give them not lend them)
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Replying to @arthur_affect
Even that alone wouldn't have caused the crisis, which was caused by Wall Street packaging and financializing those bad loans, and the ratings industry giving them ratings they never deserved. Poor people taking out loans they couldn't afford were not the villains there.
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Right, it was the availability of ready refinancing that convinced a lot of borrowers the possibility of foreclosure could be indefinitely delayed A lot of people didn't understand the nature of the system they were being asked to buy into and were deliberately misled
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Replying to @arthur_affect
Yeah, but my point is, all of those loans could have been foreclosed on, and the economy would have survived. The crash happened because the bad loans were themselves turned into financial instruments and the ratings agencies pretended they were solid.
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