From Mumia Abu-Jamal on death row
Saving bankers while home owners fail
Published Jul 20, 2008 8:42 PM
Excerpts from a June 29 audio column. Go to prisonradio.org to hear Mumia’s
commentaries and millions4mumia.org
to get updates on his legal case and activities demanding a new
trial.
Throughout the presidential primaries, while politicians amass millions
from both corporate and private sources, how many times did you hear the
subprime lending disaster discussed?
Over a million homeowners, most of them Black or Brown, faced foreclosure and
the loss of their most valuable financial asset, and most politicians passed
over it in relative silence, while they begged or lied for votes.
How can this be unless they, like most pols, were the paid-for property of
corporations?
When the sub-prime mess hit, in a matter of hours, the Federal Reserve
Board’s head, Ben Bernanke, slipped $200 billion bucks in government
guarantees to keep the mortgage loan industry afloat. Thus, the U.S. government
used its power to back the banks’ hustling of what were essentially junk
bonds.
A fifth of a trillion dollars to back those who ripped off a million people
with loans designed to fail; and for those who got ripped off, nothing.
Indeed, the only politician who was attacking this practice was New
York’s former Attorney General (and later Governor), Eliot Spitzer. But
once he was caught in the hooker scandal, this threat melted slowly away.
These sub-prime loans, saddled with balloon-like expanded repayment rates, were
designed to fail, and these legalized hustles were steered at an astonishing
rate—to 73 percent of high-income African-American and Hispanic families.
Among white high-income homeowners, only 17 percent were recipients of
subprimes.
This greed riot has sent shivers throughout the economy, not just in America,
but overseas as well, because foreign companies and governments invested in
these junk mortgage bonds.
The foreclosure crisis has slowed housing construction; loans are almost
impossible to get; and the International Monetary Fund estimates banks and
investors will lose some $1 trillion.
But for nearly a million families their losses will be infinitely greater. They
lose their dreams, their homes, and perhaps their families. How many divorces
have they birthed by these foreclosures? How many families have been split
asunder? How many suicides?
These non-economic losses can be traced to pure, unmitigated greed of bankers,
investment houses, and the willing blindness of a government.
Articles copyright 1995-2012 Workers World.
Verbatim copying and distribution of this entire article is permitted in any medium without royalty provided this notice is preserved.
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