Lending Scams Turning American Dream Into 4 Alarm Nightmare

With the housing bubble bursting, as it is commonly referenced as doing, dven Democracy Now is talking about domestic economics. Amy Goodman had on Danny Schecter, the News Dissector, talking about his new documentary, In Debt We Trust. She also had on Keith Ernst, senior policy counsel for the Center for Responsible Lending in Durham. The so-called American Dream of owning a home is disintegrating right now as the popular tool of the lending vultures, the adjustable rate mortgage industry is exploding with defaults due to very predictable rising interest rates. Equity dumped into home purchases by families across the country, is disappearing along with their homes being taken back by the banks that already made a bundle in fees when they did the scheisty loan deal. But the scam is really exploding as the housing market is so riddled with foreclosures that the scamming banks and loan companies can’t resell the homes they’ve stolen from families. This has been happening to the black population for some time now. As advanced capitalism seeks new and more clever ways to eek out profit, the fire is spreading and is now being classified as an emergency, hence the documentaries and white progressive attention to the issue.

What will be interesting is who ends up owning this issue. What group? MoveOn proved with the Iraq supplemental funding bill scandal that it is purely a tool of the Democratic National Committee so on the one hand it might stay away from this economic and class issue that is increasingly becoming a common issue that will temporarily unite a lot of the US public. MoveOn is not about uniting across class so this really isn’t their kind of issue. And with their now clear ties to the Dem Party, they certainly might want to steer clear of this. At the same time though, MoveOn might be directed by the DNC to take on this issue as a way to co-opt what might balloon out of control with national anger at the immense theft being carried out right now that numbers in the hundreds of billions of dollars according the Financial Times that recently wrote that the current theft could easily become,

the largest loss of African-American wealth in American history

correctly stated, this could be the largest loss of African-American wealth since US slavery, an amount that will and cannot be eclipsed by any scheme besides outright slavery and complete land expropriation as was done then. MoveOn may take on the issue and provide fake grassroots ‘leadership’ in an attempt to save the asses of the rich currently doing the stealing. Or maybe white progressives will have finally gotten wise to MoveOn and won’t accept their leadership on this issue as they did on the Iraq sellout. We’ll see.

Regardless, what will popularly be known as the ‘leadership’ on this issue will most likely not be those most harshly affected, black and brown folks. The leadership here, as in most issues initially affecting people of color but eventually whites as well, becomes owned by whites and is consequently not responded to most effectively. The response is usually a compromise with the rich that produce these scandals of wealth and poverty. It is usually a compromise between the rich and the whites affected by their theiving, a compromise that seeks to preserve the system of exploitation as opposed to ending it. A compromise that will be based on a faulty analysis that the system is broken and not doing what it was is supposed to do when in actuality it is working as designed. But whites never get that far in their thinking and prefer to see the system as framed by the ruling class. The American Dream where everyone can own a home, everyone will be treated fairly, judged by the content of their character and all of that. Whites, even those affected by the current scamming, still believe in that BS line of the ruling class and will accept a compromise, some reforms, that promise to get us back to that point, back to the dream. Reform not revolution. The system needs to be rendered in pieces not repaired. It can’t be repaired because it’s not broken. But unless their is a multiethnic coalition of leadership around this crisis, maintenance of this exploitive system is what we will inevitably get.


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