Who Killed Cleveland?

[jnedley]

You see him every time you go to the bank.

Link to story in Cleveland Scene:

http://www.clevescene.com/2007-08-29...led-cleveland/

[Moe Bedard]

Wow, what a story. This has been the case with almost every neighborhood in America and I am glad to see a non-profit that is getting aggressive with these lenders to help stop foreclosure.

I like how the author describes the non-profit:

The year was 1999, when Seifert's guerrilla nonprofit, the East Side Organizing Project, was helping parents battle the bungling monster known as the Cleveland school district.

Then he goes on to describe a passage from the bible to explain that God warned us:

Bankers, of course, weren't entirely to blame. God Himself warned of the usurers 2,000 years ago. Trusting them with your financial future is like hiring a Labrador to guard your dinner.

This is truly what has been happening politicaly till now.

When Ohio cities tried to enact anti-predator laws, the legislature moved to stop them. Former Attorney General Betty Montgomery actually sued Cleveland to bar it from protecting residents. Her successor, Jim Petro, blamed the problem on stupidity. "We were told that people were not educated and he couldn't do anything," says Seifert.

Local pols weren't any better. Though ESOP was compiling evidence of fraud by the pound, Prosecutor Bill Mason preferred to bag crackheads. It made for easier hunting, better headlines.
President Bush even named Roland Arnall his ambassador to the Netherlands. At the time, Arnall's company, Ameriquest, was the biggest predatory lender in Cleveland ["All the President's Men," October 19, 2005].

This is right on point. When the poor were losing their homes, it was ignored.

As long as they kept to Cleveland's black neighborhoods, everything was fine. Yet they started moving to the inner-ring suburbs and beyond, where laws are still upheld, and politicians actually care. "In the last two years it started hitting white people," says Seifert. Bankers had foolishly created a more vigorous enemy: suburban mayors and legislators.

At the same time, the chickens were coming home to roost. The industry had been issuing bad loans for a decade. Foreclosures soared, and Wall

Street began seeing default rates as high as 50 to 60 percent. It's one thing when Joe Sixpack goes bust. It's quite another when some very big people start losing some very big money. The mortgage crisis was now sailing in full regalia.

Then he finishes the story with the final blow of satisfaction!

At least it makes for wonderful irony. The empty homes now provide free housing for the crack industry. When it comes to morality, the bankers are now among kindred spirits.

Great article!

[jnedley]

Maybe send us a letter...?

[Moe Bedard]

I will pass it around. Good article. Send a letter???