Credit, Pensions and the Browning of America

Credit, Pensions and the Browning of America

(Editors note: The Holiday’s are way to busy for everyone so normal, # posts resume on January 1, 2011)

The browning of America is not economically viable for anyone

Credit reports and credit scores are firmly in the ranks of Stuff Black People Don’t Like. Low credit scores are a clear indicator to mortgage lenders and banks that a great risk of not being paid back and defaulting on a loan is associated with the person applying for such money.

This is the primary reason Black people get turned down for loans and force mortgage brokers to create high interests loans to ensure that they get the opportunity at home ownership (this is also the reason payday loan stores, title shops and Aaron’s rentals are found so prominently in Black areas).

A much celebrated fact by Disingenuous White Liberals (DWLs) is the browning of America, though these white liberals enjoy this moment safely from white enclaves far away from where the racial transformation is occurring. A county outside metro Atlanta highlights this change, as Gwinnett County once served as the fastest growing white county in America. Now, it’s majority-minority:

By the middle of this century, maybe as early as 2041, the U.S. population will no longer be a white majority; it will be a minority majority — blacks, Hispanics, Asians — and when that  happens Gwinnett County will be standing at the finish line, waiting.

The U.S. Bureau of the Census said on Thursday that Gwinnett County is now minority majority, an oxymoron that translates into 50.8 percent of the population as non-white and 49.2 percent as white.
The numbers, based on 2009 census estimates, were a long time coming, said demographers who have been watching as the county, with a population of more than 800,000, has become one of the most diverse in the nation.

In 2000, Gwinnett’s population was 67.3 percent white and 32.7 percent minority. Since then, the black and Hispanic populations of the county have more than doubled.

That’s no shock to Lisa Neidert, a senior research associate the University of Michigan’s Population Studies Center. She said Gwinnett, with its booming population, was bound to join the more than 300 counties in the U.S. that are now minority majority.

“If you’re in an area of the county that’s growing you’re going to be a minority majority,” said Neidert. “Gwinnett is just reflecting what’s happening nationwide.”

The nation’s minority population is steadily rising and now makes up 35 percent of the U.S., according to census estimates.

This glorious transformation from a boring, prosperous white enclave into a multiracial paradise means what in the literal sense? A higher foreclosure rate then even Clayton County, that’s what:

The decay of the neighborhood tracks closely behind the collapse of the housing market. Gwinnett Countyhome sales in 2009 were bank sales — and that foul wave washed over Quinn Ridge Forest, too. At the moment, three of the 12 houses on the market there are bank sales. has become the foreclosure capital of metro Atlanta — 44 percent of its 10,301

The county looks no better in 2010: with 26,502 foreclosure notices for the year, Gwinnett surpassed Fulton, DeKalb, Cobb and Clayton counties, according to Equity Depot, which tracks foreclosure and other real estate trends in metro Atlanta.

Yet, even with the rise in distressed residential properties countywide, Gwinnett’s appraised values are still above fair market value, in some cases way above, as Carlson’s case illustrates. Carlson and her husband bought their three-bedroom house for $82,000 in 1991. Now, she said, they’d be lucky if the house fetched $70,000. Yet the current tax appraisal values the house at $134,500.

As whites move away from the wondrous diversity peddled by DWLs and gobbled up with equal intensity by Duplicitous White Conservatives (DWCs), they leave behind multiple crises that festers like an untreated open wound: collapsing home values,  deteriorating schools (their white sons and daughters the reason the schools were good in the first place) and an eroding tax base to pay for police, firefighters, other government employees and improvements to the city and upkeep of the infrastructure. Worse, pensions are in jeopardy for city employees long retired and expecting money for their services rendered.

Blame white flight:

Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.

So the declining, little-known city of Prichard is now attracting the attention of bankruptcy lawyers, labor leaders, municipal credit analysts and local officials from across the country. They want to see if the situation in Prichard, like the continuing bankruptcy of Vallejo, Calif., ultimately creates a legal precedent on whether distressed cities can legally cut or reduce their pensions, and if so, how.

“Prichard is the future,” said Michael Aguirre, the former San Diego city attorney, who has called for San Diego to declare bankruptcy and restructure its own outsize pension obligations. “We’re all on the same conveyor belt. Prichard is just a little further down the road.”

Many cities and states are struggling to keep their pension plans adequately funded, with varying success. New York City plans to put $8.3 billion into its pension fund next year, twice what it paid five years ago. Maryland is considering a proposal to raise the retirement age to 62 for all public workers with fewer than five years of service.

Illinois keeps borrowing money to invest in its pension funds, gambling that the funds’ investments will earn enough to pay back the debt with interest. New Jersey simply decided not to pay the $3.1 billion that was due its pension plan this year.

Colorado, Minnesota and South Dakota have all taken the unusual step of reducing the benefits they pay their current retirees by cutting cost-of-living increases; retirees in all three states are suing.
No state or city wants to wind up like Prichard.

Driving down Wilson Avenue here — a bleak stretch of shuttered storefronts, with pawn shops and beauty parlors that operate behind barred windows and signs warning of guard dogs — it is hard to see vestiges of the Prichard that was a boom town until the 1960s. The city once had thriving department stores, two theaters and even a zoo. “You couldn’t find a place to park in that city,” recalled Kenneth G. Turner, a retired paramedic whose grandfather pushed for the city’s incorporation in 1925.

The city’s rapid decline began in the 1970s. The growth of other suburbs, white flight and then middle-class flight all took their tolls, and the city’s population shrank by 40 percent to about 27,000 today, from its peak of 45,000. As people left, the city’s tax base dwindled.

Prichard’s pension plan was established by state law during the good times, in 1956, to supplement Social Security. By the standard of other public pension plans, and the six-figure pensions that draw outrage in places like California and New Jersey, it is not especially rich. Its biggest pension came to about $39,000 a year, for a retired fire chief with many years of service. The average retiree got around $12,000 a year. But the plan allowed workers to retire young, in their 50s. And its benefits were sweetened over time by the state legislature, which did not pay for the added benefits.

For many years, the city — like many other cities and states today — knew that its pension plan was underfunded. As recently as 2004, the city hired an actuary, who reported that “the plan is projected to exhaust the assets around 2009, at which time benefits will need to be paid directly from the city’s annual finances.”

Prichard is currently 84 percent Black. The browning of America isn’t exactly cause for celebration when you get down to crunching the numbers and looking at the balance sheets.

Currently 72 percent of Black children are born out-of-wedlock and with single Black women having an average net worth of $5 dollars, one is left wondering who will fit the bill for the social programs that keep these families afloat once white people are gone?

Black people don’t save for the future, utilizing credit to pay for many extraneous items that impulses for instant gratification require immediate pacification. Many banks and mortgage brokers are worried about lawsuits brought on by Black people for being denied loans (another future SBPDL), so they find ways to grant these people high interest loans to insulate themselves from accusations of racism.

Such financial institutions, called predatory for having excessively high interest rates, will inevitably be sued by Blacks because they will default on these generous loans as well (claiming the loans were saddled with interest and hidden no honest person could pay, though their poor credit necessitated these elaborate loans), thus proving that attempts to insulate a bank, corporation or mortgage lender from accusations of racism are rendered moot.

One of the rules of SBPDL is simply this: Anytime Black people fail (whether it be poor academic  performance on LSAT, MCAT, ACT/SAT) racism can be the only culprit. Discrimination is always to blame.

Conversely, another rule is this: Anytime a vocation has a noticeable shortage of Black people employed in the field, a crisis of unimaginable magnitude is afoot.

There is no bias in mortgage lending, as many mortgage companies tried to insulate themselves from cries of “racism” by becoming champions of minority lending (looking at you Ameriquest). Minorities have worse credit scores – because of poor decision with that credit – making loans difficult to come by and when they do, rarely are they repaid.

What does the browning of America mean? Perhaps this link will show you what is to come.

It is time to admit what is upon us and what the browning of America really translates into: A racial paradise free of turmoil is not around the corner; a catastrophe of Biblical proportions appears to be in the offing.

Black Run America (BRA) is on its last legs. Where will you be when those legs buckle?

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