Scott

“Even with the bundling and splitting of tranches, Wall Street needed more mortgage borrowers, so it created the subprime market. These were loans to borrowers who did not meet the underwriting standards set forth by the GSEs, or “prime” loans. Subprime borrowers were riskier borrowers, either because they had fewer assets, lower credit score, or lower incomes. But in finance, higher risk is rewarded with higher yield, so mortgage brokers made even higher premiums from subprime loans.”
― Mehrsa Baradaran, The Color of Money: Black Banks and the Racial Wealth Gap

“For black families, each dollar creates only sixty-nine cents in total wealth.25 This is why the wealth gap between blacks and whites can continue to grow even when de jure discrimination ended decades ago.”
― Mehrsa Baradaran, The Color of Money: Black Banks and the Racial Wealth Gap

“It is worth distilling this message in order to fully appreciate the irony. The story was that after decades of New Deal–era federal subsidies had created a white middle class, reinforced a segregated black underclass, and created cyclic poverty that made it difficult for many to find shelter and food without government aid, it was black people who were being unjustly enriched by the overly generous hand of the state.”
― Mehrsa Baradaran, The Color of Money: Black Banks and the Racial Wealth Gap

“On one side sat a group of mostly nonwhite Americans who believed (or knew from personal experience) that institutional racism is still a deathly serious problem in this country, as evidenced by everything from profiling to mass incarceration to sentencing disparities to a massive wealth gap. On the other side sat an increasingly impatient population of white conservatives that was being squeezed economically (although not nearly as much as black citizens), felt its cultural primacy eroding, and had become hypersensitive to any accusation of racism. These conservatives blamed everything from the welfare state to affirmative action for breeding urban despair and disrespect toward authority—in other words, these conservatives saw themselves as victims of malevolent systems and threatening trends but thought that nonwhite Americans were fully responsible for their own despair.”
― Matt Taibbi, I Can't Breathe: A Killing on Bay Street