Foreclosure Crisis has Raked up Issues relating to Racial Disparities

A recent report analyzing the impact of the foreclosure crisis has raked up issues relating to racial disparities. It seems that the Blacks and Hispanics are bearing the main thrust of the recession. The policies being formulated should address this yawning divide.

The report has been titled “State of the Dream 2010: Drained – Jobless and Foreclosed in Communities of Color.” This is the 7th yearly Martin Luther King Jr. Day report from UFE (United for a Fair Economy).

Last December the CBC (Congressional Black Caucus) did not take part in a vote pertaining to financial reform. It demanded more support to be given to the Blacks in this hour of crisis. The action taken by the CBC was important. It secured $6 billion but the report suggests that more should be done.

Brian Miller the UFE said, “As recent unemployment statistics confirm, the broad-based economic recovery policies are not reaching those who need it most, including people of color. Our report contains ample evidence to conclude that without targeted policies, such as those proposed by the CBC, we will never reduce the wide gaps of income and wealth between races.”

Last December the unemployment figures of this group spiked to the highest level since the last 27 years.

The co-author Ajamu Dillahunt, of this report and member of UFE board said, “Families survive unemployment better or worse depending on how much of a cushion they have, and African American and Latino families entered the recession with a dangerously low median net worth. In 2007, Blacks had only a dime of assets for every white dollar.”

The report includes a wide range of data that is accessible and also analysis about the current disparities in the economic health between the two communities as regards employment, earnings, poverty and loss of wealth. The report has also made suggestions that could be implemented to address the problems of those worst affected by the crisis.

Mike Prokosch who is also another co-author of the report said, “A good model is how we prepare for a potential flu epidemic. We give vaccines to the most vulnerable populations first. Economic policies should follow the same approach.”

It is alleged that the crisis was largely brought about by peddling these dubitable loans mainly to the Blacks and Hispanics taking advantage of their not being conversant with fluent English and the nuances of the contracts.

Original Post: http://www.foreclosure1.com/blog/foreclosure-crisis/foreclosure-crisis-issues-racial-disparities