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Tuesday, March 17, 2009

The New NAACP - Leadership By Press Release


"The 100 year old
dinosaur wakes up! The dinosaur is lost in the big city and does not know what to do. The NAACP has finally taken some action. Yes, It's leadership by Press Release."


The NAACP recently filed separate lawsuits in U.S. District Court in California against two of the country’s largest lenders,Wells Fargo, and HSBC. These lawsuits allege systematic, institutionalized racism in sub-prime home mortgage lending. The remedies being asked for in the lawsuit include measures for increased accountability and transparency.

AAPP: Measures for increased accountability and transparency. Wow, black folks from around the United States have called for measures of increased accountability and transparency "within the NAACP" for years. Now the NAACP wants to allege systematic, institutionalized racism in sub-prime home mortgage lending.

Everyone knows the mortgage industry has been doing this for years. Now NAACP, all of a sudden, after your long sleep, you wake up and smell the racism? I'm not saying the NAACP is worthless, no the local branches do great work. As an example the Mississippi is taking on State trooper discrimination. Many local branches do great work.

Yet, NAACP national is a paper tiger. Hey NAACP National, it's the regulators at the United States government, state mortgage regulators and Fannie and Freddie, that are the problem, they were the ones that allowed the mortgage lenders to do what they have done. Just like they are allowing AIG to do what it is doing.

As bloomberg.com noted some time ago, "Fannie and Freddie did this by becoming a key enabler of the mortgage crisis. They fueled Wall Street's efforts to securitize subprime loans by becoming the primary customer of all AAA-rated subprime-mortgage pools. In addition, they held an enormous portfolio of mortgages themselves.

In the times that Fannie and Freddie couldn't make the market, they became the market. Over the years, it added up to an enormous obligation. As of last June, Fannie alone owned or guaranteed more than $388 billion in high-risk mortgage investments. Their large presence created an environment within which even mortgage-backed securities assembled by others could find a ready home.

The problem was that the trillions of dollars in play were only low-risk investments if real estate prices continued to rise. Once they began to fall, the entire house of cards came down with them. More HERE

It is also the United States Government that is bailing mortgage lenders out today. Hey National office of the NAACP, like the 100 year old dinosaur that you are, your doing thinks backwards as usual.

To little too late.

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