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"Predatory Lending" Didn't Cause the Housing Crisis, Liberalism Did!

BEGIN TRANSCRIPT

RUSH: I want to go back to this poll. Ninety-one percent of American blacks support Obama; 36% of whites support Obama. Now, I thought that was supposed to end. That kind of polarization. We were supposed to be in a postracial, postpartisan America, all singing kumbaya. Can't we all get along? I would venture to say, ladies and gentlemen, that I have done more to reach across the aisle and to bring people together than Obama ever has. And he's not even trying to. This whole thing was a myth. The whole point that the country was going to rally around something we had never seen before. And now we get to the next story. This is from Reuters: "Racial Predatory Loans Fueled US Housing Crisis," according to a study. Now, this comes -- this is no accident. Propaganda, Reuters.

This comes right on the heels of Obama and his "It took a long time to free the slaves" comment. So while we were supposed to be living in a country the racial divide erased, all singing kumbaya, postpartisan, postracial, Obama and his minions in the media are now participating in the effort to continue to divide people by any which way they can. You know, by race, by creed, by sex, politics, or what have you. "Predatory lending aimed at racially segregated minority neighborhoods led to mass foreclosures that field the US housing crisis, according to a new study published in the American Sociological Review." Now, if you don't believe me, look it up yourself. The American Sociological Review is one of the most ultralib organizations out there. It's published by American Sociological Association.

You want to search Discover the Networks. Google or Bing, you know, search discover the networks for more on the radicals involved in this bunch. So here you have a far left-wing bunch -- commies, socialists, Marxists -- writing this bogus report that "predatory lending" aimed at racially segregated minority neighborhoods led to the crisis. I mean, this is pure revolutionist history. It is the exact opposite here. The banks were forced by law to loan to people who were not qualified in order to make housing "affordable," in order to reach quotas. This is what the Community Redevelopment Act was all about. It actually started with Carter, but it didn't really get any energy behind it until Clinton, and then Obama massaged it even further. Oh, we've had the stories. Janet Reno during Clinton was calling these various banks, threatening them with major federal investigations if they didn't make these loans.

And everybody knew it was going on. It was not predatory. This is not redlining. At the same time while this is going on, we were hearing that banks were redlining and we're discriminating. "They were not loaning money it black people because they were being racist and discriminatory." So at the same time redlining was going on we now have this ultraleft-wing report claiming that predatory lending was going on. Everybody knows this is BS. Everybody knows it. This is Barney Frank and Chris Dodd. I mean, they are definition of "affordable housing" was basically to put people in homes that could not afford it. It just wasn't that some people did not have houses. It wasn't fair. America's unjust! America's immoral! What it boils down to, folks, is this: It wasn't fair that some people could afford houses while other people could not afford them.

You could almost say that the Democrats would look at the housing problem at the time (quote, unquote, "problem"), and say, "It is ridiculous that home ownership is restrictive only to people who can afford homes." That's essentially what they were saying. Now, stop and think about that. Essentially what they were saying is, "It's not right that housing is limited only to people who can afford houses." That's what they were saying! So people that can't afford houses were going to be put in there anyway. The banks, under the threat of punishment of the federal government... Anybody that going up against the federal government knows that they have unlimited money. You can't beat them. This is a protection racket. It's just like dealing with the mafia. You've got Janet Reno threatening you with investigation, what are you going to do?

Well, these are entrepreneurial people. They say, "Okay, we gotta loan money to people that can't pay it back? All right. How we going to survive? We know we're not going to have the loans paid back so what do we do? Let's find a way. These are basically worthless pieces of paper. How we gonna make these worth something to us." So they came up with the mortgage-backed security scam, and they came up with a number of financial products where they would sell these useless mortgages on the come claiming that somewhere down the road they would be worth something to somebody. Well, the first people, the banks selling these things of course found a way to make something worthless worthful, but as it went on down the line the worthlessness maintained itself. They never did become worth anything and after a while it all caught up with everybody.

I mean, this is a Democrat problem from its beginning. The people who conceived this plan, the people who implemented the plan, the people that used the brute force of the federal government to keep the plan going led to the problem we are now in. The subprime mortgage crisis -- I maintain, folks -- is the number one reason we have an economic collapse today. It's the number one reason, brought to you exclusively by Barney Frank and Chris Dodd, the Democrat Party. Yeah, I can remember Barney Frank talking about it. (spitting and sputtering) "What about d'poor people'th? Where are dees these poor people gonna live! We need houses for poor people. It costs too much! We must have affordable housing! It's unfair to poor people!" Barney is out there saying the mistake was (of course it wasn't his) that these people should have been renting all along.

We should not let them buy houses. Now he's trying to turn into the story that was predatory lending. Now, don't misunderstand here. I'm not fully and totally exonerating banks, don't misunderstand here. But this, folks, is a lie that racial predatory loans fueled the US housing crisis and you got a ultraleft-wing group who did a, quote, unquote, "study" that is now reported dutifully by a State-Controlled Media outlet, Reuters. "Predatory lending typically refers to loans that carry unreasonable fees, interest rates and payment requirements. Poorer minority areas became a focus of these practices in the 1990s with the growth of mortgage-backed securities, which enabled lenders to pool low- and high-risk loans to sell on the secondary market, Professor Douglas Massey of the Woodrow Wilson School of Public and International Affairs at Princeton University and PhD candidate Jacob Rugh, said in their study."

Could you get any more socialist than this? The Woodrow Wilson School of Public and International Affairs and a Ph.D. candidate at same? Predatory lending? Predatory lending? Unreasonable fees, interest rates, and payment requirements...? Well, if you can't afford it, anything would be unreasonable. Any fee, any interest rate, any payment requirement, if you can't afford it, would appear to be "unreasonable." What were the banks to do here? Now, Douglas Massey, professor Douglas Massey, who did the survey, or the study, Douglas Massey is the founder and codirector of the Mexican Migration Project and the Latin-American Migration Project. His most famous work is American Apartheid: Segregation and the Making of the Underclass. So this guy is a big open borders guy, a big amnesty guy. America is discriminating against Hispanics and Mexicans.

And now this guy writes a report saying it was predatory lending that led to the subprime crisis when in fact it was the exact opposite. The lenders did not want to make these loans. I mean, ask yourself: Who in their right mind would lend money to somebody who can't pay it back unless somebody is promising you on the back end that they're going to take care of it somehow? You add to this that the real estate market was just climbing like crazy, headed to a bursting bubble -- and all of it was created by the fact that people were essentially being given houses. So of course people that build houses are going nuts building them. You look now at the result: Foreclosures. I saw something today. I'll have to double-check this. Signed contracts for new houses are down 20% over a year ago.

Yet we're in a recovery. The recession ended in June 2009, yet signed contracts for new homes down 20%. Hey, Reuters is running stories about how the worst is in the housing market, slowly but surely, is starting its rebound. "The financial institutions likely to be found in minority areas tended to be predatory -- pawn shops, payday lenders and check cashing services that 'charge high fees and usurious rates of interest,' they said in the study. 'By definition, segregation creates minority dominant neighborhoods, which..." This creates minority dominant neighborhoods? Liberalism creates minority dominant neighborhoods! Take a look at any liberal city and look at the segregation. Go to any liberal city in this country and look at the segregation. The blacks live alone, the Hispanics live alone, the whites live alone. Liberalism creates segregation. Liberalism creates all kinds of economic segregation, economic morass, economic depression. Liberalism. Liberals are the great segregationists. They were in the sixties, they were in the fifties and forties, and they remain segregationists to this day. Education segregation? Liberalism! It's not complicated. You just have to accept it.

BREAK TRANSCRIPT

RUSH: Predatory lending. How do you force somebody to take a loan they can't pay for? How do you force somebody to do that? How do you point a gun at somebody and say, "You're gonna take this loan for $400,000 and you're never going to have to pay it back." The point is it's not predatory. The whole notion it's predatory is bogus.

END TRANSCRIPT

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