So how about that Zimmerman trial?

[Splorf22]

Here is my question Alawen: suppose what you are saying is true. Why has no one founded "Black & Latino Bank of America" to profit from this inefficiency? They could run ads that specifically appeal to minorities about how the white patriarchy is fucking them and immediately get all of their business. And if they offered a 1% premium instead of a 3% premium they would still be significantly more profitable than their white counterparts selling to white home owners.

[Alawen]

Where is HBB's flying car? Efficient market theory dictates that every demand is fulfilled, right? After all, corrupt government, targeted regulation, and crony capitalism don't exist.

[Splorf22]

So you are saying that some cartel of white bankers and politicians are conspiring to keep the black man down? I mean I can't say your wrong, but I thought they were too busy with drone strikes in Pakistan.

[Splorf22]

god you're

[Daldolma]

Originally Posted by Alawen [You must be logged in to view images. Log in or Register.]

Obviously all black and latino homebuyers are collectively stupid. They don't know how to bargain the price down and they don't know how to get a good loan. 100% their own fault.

i c yer sarcasm but given the fact that the study found no significant differences based on race of the seller or racial composition of the neighborhood, and controlled for wealth and access to credit, wouldn't it make sense to consider that the difference could reside on the demand side?

the idea that black sellers in black neighborhoods are pricing up black buyers at the same rate as lily white sellers in homogenously white neighborhoods seems a bit far fetched. i don't doubt systemic racism exists, nor do i doubt it exists within the housing market. i just question the interpretation of this data, given what it didn't find and what it controlled. if we're seeing a pervasive, invariable premium on real estate purchases by black and latino buyers across all markets, the issue may reside with the buyer and not the varied sellers

[Barkingturtle]

Man, Alawen, I know you've got some masochistic streak which compels you to teach--but I will never understand that which drives you to wrestle with malformed intellects of this mongrel species: the P99 Spergorgon. Rather it is because the basement is too deep or his arms are too short he can reach only the lowest fruits and even then he only comprehends their shiny, waxy skins. Better to make dick and fart jokes, imo. I only mention it because I care.

[Alawen]

Buyers rarely interact directly with sellers. There is usually at least one agent involved and frequently two.

Let's imagine for a moment that Bob opens up Bob's Pretty Good Black and Latino Loan Store. Bob starts making enough loans to show up on the radar of First National Loan Gougers of Omaha. They crunch the numbers and they'll make more money by buying Bob out. They don't even have to pull in favors from Mayor Corruption or Governor How Much You Got. Bob gets a couple mil, First National goes back to gouging. No conspiracy required.

Barkingturtle, I'm pretty stubborn. Not as stubborn as HBB, but I'll waste quite a bit of time before I realize the futility of something. But what if even one person says, "Hey, I hadn't looked at it that way?"

[Splorf22]

In your scenario Bob walks away with a million bucks after a few years of work. Don't you think there would be a lot of Bob's out there?

[Alawen]

Sure, all the Bobs with experience in banking, knowledge to navigate the bureaucracy, and enough capital to finance a bank. It's not like cost of entry exists or anything.

I'm really not interested in continuing this conversation where I cite empirical data and you argue vaguely defined idealized principles. The counterpoint to my evidence is your own evidence, not supposition.

Yes, but what does that MEAN?

[Splorf22]

BTW, I'm with Daldoma: I think most people are racist. It's natural and human and probably a factor. I just think they value their pocketbooks more. Even the authors suggest that racial prejudice is not the primary factor.