Structural Racialization and the Subprime Mortgage Crisis john a. powell Williams Chair in Civil Rights & Civil Liberties, Moritz College of Law & Director, Kirwan Institute for the Study of Race and Ethnicity Overview A Story of Overfishing The Foreclosure Crisis Systems Theory
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Structural Racialization and the Subprime Mortgage Crisis
john a. powell
Williams Chair in Civil Rights & Civil Liberties,
Moritz College of Law &
Director, Kirwan Institute for the Study of Race and Ethnicity
Five hundred years ago, the explorer John Cabot returned from the waters around what is now Newfoundland and reported that codfish ran so thick you could catch them by hanging wicker baskets over a ship's side.
By 1988, they were gone.
This is the way it is with the atmosphere.
With industrialization, factories, cars, and power plants pump CO2 into the atmosphere faster than it can be absorbed.
Source: Complaint, City of Cleveland v. Deutche Bank Trust Company, et. al.
(prejudiced “bad apple)
(transparency of mind)
Impact on Black and Latino Neighborhoods
Structural Racialization Analysis Applied
Subprime Crisis Spreading Outward
“ We believe that evidence of disparate pricing for borrowers of color is likely a symptom of a larger set of issues in a market that has gained notoriety as a magnet for predatory lenders.”
- Unfair Lending: Study of Racial Impact on Price of Subprime Mortgages By the Center For Responsible Lending
Systems Perspective (Multiple Impacts)
Capital Market ‘Credit crunch’
Banks, police and courts saddled with foreclosures
Families lose their homes, wealth and safety
SUBPRIME LENDING: We didn’t care about the canary...
Affected neighborhoods are being reduced to ‘ghost towns’
Reduced spending and retail flight
Appendix: Addressing the Foreclosure Crisis