times more to get subprime loans more likely. a side note on that, subprime means higher interest rates, higher papements, which means less money for basic necessities like food and transportation. it also means the wealth gap widens between minorities and whites. there was a silver lining, though. 2009 number it s show drops in subprime loans in all the categories. afr dan americans and latinos saw the lowest drops here. daunting indications as minority homeownership is already low, just over 40% by some measures. absolutely unbelievable. thank you so much. i m joined now by lanette cal fawny cox, the money coach and contributor to the grio.com. how are you? good. what s going on here, simple racial discrimination? i don t think it s racial discrimination exclusively, though i don t think we can discount that possibility. you have to look at the numbers and look at the overwhelming statistics. i mean, this company, compliance tech, did a massive amount of
got caught in the middle of a hurricane. this is man-made and you get the feeling that people are talking about it as if it s a natural and not a man made disaster. there was a lost blame to go around. that is true from greenspan and ber nank we the unrealistically low rates to the greed of home lenders who could see subprime to the greed of home buyer who is took on unrealistic debt. there is plenty of blame. there were some people involved who could see what was happening and even if they couldn t, they shouldn t and they didn t. now they are saying it s not my fault. it makes me want to wash my hand with strong disinfe iinfec iind. the lebron watch. even if you don t watch basketball, we have millions of
if it s a natural disaster. there is a lot of blame to go around from greenspan and bernanke at the fed with their unrealistically low interest rates for far too long, to the greed of home lenders who could see subprime to the greed of home buyers who took on unrealistic debt. there is plenty of blame. but there were some people involved who could see what was happening and even if they couldn t, they should have and they didn t and know they re trying to say, it s not their fault. frankly, it makes me want to wash my hands with strong disinfectant. thank you, richard. next, the lebron watch. even if you couldn t care less about the nba, you don t watch basketball, we ve got millions of reasons for you that you want him to pick your town. but first, how to take your product from a handful of stores to thousands of them all over the world in this week s kurnaround.
mac included in any kind of meaningful financial reform. does anyone get that? most of the loans that were modified at the cost of a hundred and some billion dollars of taxpayers money have gone under again. have gone driven went again within six months. jon: that was senator john mccain of arizona who read an entire editorial from the wall street journal on the senate floor into the senate record, and the editorial page editor of the journal, paul, is with us now. good to be with you. jon: well, $145 billion, what do we get for that money? nothing. i mean, this is spent money. these are losses that took place, most of them, in 2006 and 2007, loans that they brought up, subprime, the liar loans and what not. they are spending a little more money now, billions in fact, on mortgage foreclosure mitigation to try to stop more foreclosures. but most of those, as the senator pointed out, in fact
the banks need the good ratings to then sell their products. and investors buy and sell based on these ratings. so the rating agency in other words, there might be a bund of mole of mortgages they have rated them as the top risk, aaa rated, low risk, but somehow the conflict here is that the credit rating agencies are getting paid by the banks. well, and, ali, we now know that 93 % of the subprime mortgage bundled products were rated aaa. subprime by definition means subprime, that it s not aaa. right. so we now know that a lot of these products were rated top quality products for investors when they were not containing top quality investments in the first place. so cuomo s office is looking into this. also looking into, we re told, whether there was a revolving door between the mortgage desks of these big banks and the credit rating agencies. so you go just like everything