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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (149419)	8/9/2002 3:04:05 PM
From: TimF	Read Replies (1) \| Respond to of 1579922

Ted, unless you can show that blacks default at a lower rate then whites it would seem that the lenders are being fair and accurate in their assessment of risks from loans. Tim

To: tejek who wrote (149419)	8/9/2002 3:17:34 PM
From: i-node	Read Replies (1) \| Respond to of 1579922

And what do you call it when people are denied a loan or a job on the basis of their skin color or their sex but the stated reason is for something else if a reason is provided at all? I suppose this happens -- occasionally. But here is a more typical example. A few years ago I had occasion to do some tax work for a farm partnership for a client I'd never met. I do the return and sit down to discuss it with my partner, who knew the client. I said, "Steve, how did these people borrow THIS MUCH money on the collateral they have? This is unbelievable. They have AT LEAST 4-5 times in debt what their collateral will support. I cannot believe these banks (there were about 6-7 banks involved) were willing to lend this money!". My partner then informed me, "Well, you see, they're a family of black farmers -- look at the loan guarantys". Jeez, I couldn't believe it. These loans were low-interest loans guaranteed by every state and federal agency you could imagine. NO WHITE BUSINESS OWNER WOULD EVER HAVE BEEN LENT THIS SUMS -- IN THE MILLIONS -- ON THE COLLATERAL CONSISTING OF PREDOMINANTLY FARMLAND. Laughlingly, these farmers later joined in the massive class action suit against USDA claiming "discrimination", which the Clinton administration settled for something like a billion dollars. A few months later, I had a client who had substantial commercial real estate, industrial equipment, and a thriving business, who needed a small ($500K) loan. We contacted THE SAME ENTITIES who had guaranteed these loans for the black farmers, only to be turned down at the last minute. Wrong complexion. It is sad when unqualified black business people are able to get in so far over their heads while struggling, qualified white businessmen cannot get funding for loans they have plenty of collateral for.