Thu Feb 13, 2020, 12:43 AM

Bloomberg Once Blamed End of Redlining for 2008 Collapse


WASHINGTON (AP) — At the height of the 2008 economic collapse, then-New York Mayor Michael Bloomberg said the elimination of a discriminatory housing practice known as “redlining” was responsible for instigating the meltdown.

“It all started back when there was a lot of pressure on banks to make loans to everyone,” Bloomberg, now a Democratic presidential candidate, said at a forum that was hosted by Georgetown University in September 2008. “Redlining, if you remember, was the term where banks took whole neighborhoods and said, ‘People in these neighborhoods are poor, they’re not going to be able to pay off their mortgages, tell your salesmen don’t go into those areas.’”

He continued: “And then Congress got involved -- local elected officials, as well -- and said, ‘Oh that’s not fair, these people should be able to get credit.’ And once you started pushing in that direction, banks started making more and more loans where the credit of the person buying the house wasn’t as good as you would like.”

Bloomberg, a billionaire who built a media and financial services empire before turning to electoral politics, was correct that the financial crisis was triggered in part by banks extending loans to borrowers who were ill-suited to repay them. But by attributing the meltdown to the elimination of redlining, a practice used by banks to discriminate against minority borrowers, Bloomberg appears to be blaming policies intended to bring equality to the housing market.

The term redlining comes from the “red lines” those in the financial industry would draw on a map to denote areas deemed ineligible for credit, frequently based on race.



4 replies, 92 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 4 replies Author Time Post
Reply Bloomberg Once Blamed End of Redlining for 2008 Collapse (Original post)
RCW2014 Feb 13 OP
Zuckerberg Hater Feb 13 #1
batcat Feb 13 #2
Zuckerberg Hater Feb 13 #4
JohnPoet Feb 13 #3

Response to RCW2014 (Original post)

Thu Feb 13, 2020, 01:16 AM

1. Nothingburger story

Reply to this post

Back to top Alert abuse Link here Permalink

Response to Zuckerberg Hater (Reply #1)

Thu Feb 13, 2020, 01:38 AM

2. If I was black or Hispanic I would never vote for this pompous billionaire. ...

Add the “redline” discriminatory housing practice story to the following report and it makes me wonder if Bloomberg isn’t racist.

Throw Them Against The Wall And Frisk Them': Bloomberg's 2015 Race Talk Stirs Debate
February 11, 202011:03 AM ET

Updated at 11:52 a.m. ET

Michael Bloomberg is distancing himself from a 2015 speech in which the former New York City mayor defended aggressive police tactics in minority neighborhoods.


Bloomberg made the remarks at the Aspen Institute on Feb. 5, 2015. In the audio, he can be heard saying: "95% of your murders and murderers and murder victims fit one M.O. You can just take the description and Xerox it and pass it out to all the cops. They are male minorities 15 to 25."

He continues: "That's true in New York. That's true in virtually every city in America. And that's where the real crime is. You've got to get the guns out of the hands of the people that are getting killed."

Bloomberg's idea of a solution? Flooding minority neighborhoods with law enforcement.

"People say, 'Oh my God, you are arresting kids for marijuana who are all minorities.' Yes, that's true. Why? Because we put all the cops in the minority neighborhoods. Yes, that's true. Why'd we do it? Because that's where all the crime is. And the way you should get the guns out of the kids' hands is throw them against the wall and frisk them," Bloomberg says.


If I were a black or Hispanic teenager I would not like cops to throw me up against a wall just because of the color of my skin. If I was the parent of a black or Hispanic teenager and the cops did that to my kid for no reason I would be PISSED.

Reply to this post

Back to top Alert abuse Link here Permalink

Response to batcat (Reply #2)

Thu Feb 13, 2020, 02:11 PM

4. Stop and frisk is an okay policy. The "throw them against the wall" remark IS bad

I don't think what Bloomberg said about redlining is bad.

Reply to this post

Back to top Alert abuse Link here Permalink

Response to Zuckerberg Hater (Reply #1)

Thu Feb 13, 2020, 03:51 AM

3. Not to Democrats

Reply to this post

Back to top Alert abuse Link here Permalink