Posted by
RicFrankel on Friday, March 06, 2009 5:57:57 PM
Re: Townhall.com – 2/18/2009 – “Upside Down Economics” – Thomas Sowell
Sowell says “Both HUD and the Department of Justice began bringing lawsuits against mortgage bakers when a higher percentage of minority applicants than white applicants were turned down for mortgage loans”. Perhaps Sowell is younger than he looks, but I remember times of systematic discrimination by the home loan industry where minority (especially black) loan applicants were denied loans regardless of income, wealth, and/or other indicators of good credit risk for all properties except those in minority ghettos. The free market did that without any help from government intervention. In fact, government intervention against discriminatory lending occurred only because of the unethical actions of virtually all major free market lenders. If government intervention to stop such prevalent practices went too far, the real blame is not with the government intervention but the unethical practices that existed on the free market that brought on the government regulation.