New York Times: "Minorities hardest hit by subprime fiasco." Not suprising, Democrats targeted minorities for the program.

This story should make readers cry for the people caught up in the subprime fiasco and furious at the Democrats and their media enablers who created the subprime program. Of course, one also has to acknowledge that individuals made decisions to accept subprime loans that they could not afford. No one forced them to do so.

The New York Times reports on the effects of requiring the financial community to issue subprime loans in "Minorities Hit Hardest by Foreclosures in New York." Of course, the Times carefully averts its eyes from the Democratic politicians who demanded that such loans be made to create home ownership in minority communities.

One certainly understands and supports the concept of home ownership as an excellent way of building wealth in minority households. The goal was admirable, but the methods employed led to disaster in the financial sector and for the individuals caught up in the subprime scheme.

The story tells poignant stories of individuals trying to better their families' lives. "Now subprime loans and a crippled economy have laid many of those families low. Olive M. Thompson, a 45-year-old nursing assistant, lost her $215,000, four-bedroom Cape in January, but not before she drained her 401(k) and declared bankruptcy."

I don't know Ms. Thompson's income level or how much she put down on the home. It would appear that she could have afforded to buy a home, but not one for $215,000. A subprime loan allowed her to buy a nicer place that she apparently could not afford. Now she has lost her home, her life savings and is in bankruptcy.

So how helpful was the Democrats' subprime loan program for Ms. Thompson and the minority community that they targeted for the program? Once again unintended consequences flow from a do-good program offered by the Democratic Party. Of course, pointing that out or opposing the original program wins one charges of being heartless and racist.

The Times touches on this, but fails to draw the correct conclusions:

This holds a special poignancy. Just four or five years ago, black
home ownership was rising sharply, after decades in which discriminatory lending
and zoning practices discouraged many blacks from buying. Now, as damage ripples
outward, black families in foreclosure lose savings and credit, neighbors see
the value of their homes decline, and renters are evicted.

Unfortunately, black home ownership was rising sharply because of subprime loans. This suggests that prior lack of loans was not the result of discrimination, but largely the application of normal lending standards. Democrats' regulations set aside those standards to require subprime loans. Now the minority community is paying the price in foreclosures, lost savings and credit.

Will the Times call the Democrats out for their snake oil economics? Never. Instead, the Times will continue to support all of the Democrats' snake oil economics programs.