Nov152013
Coming Next: Race-Based Car Loans

America under liberal rule is a racist tyranny. Think that is hyperbole? Then talk to a car dealer about this:

[T]he new Consumer Financial Protection Bureau [CFPB] is ginning up a campaign to use “disparate impact” analysis to charge racism in auto lending. That’s the theory that looks at statistics to prove bias without evidence of specific discriminatory intent. Never mind the financial or other circumstances of the borrowers beyond their race.

That is, car dealers must provide a proportionately equivalent number of car loans, at the same interest rate, to all racial groups, regardless of whether members of these groups are equally likely to repay the loan. Essentially, if Customer X has money in the bank and has never missed a day of work in his life, and Customer Y is living on welfare and just got out of jail, they must be regarded as equal credit risks if Customer Y is lucky enough to be black.

Obviously, there are plenty of blacks who are good credit risks. Equally obviously, there are many who are not. You would have to spend your entire life sealed in a windowless room with no access to the outside world except a TV tuned to PBS not to know that there are cultural differences that make blacks as a group significantly less likely to repay their loans than whites.

To achieve the liberal conception of equality, these differences must be papered over by forcing car dealers to make bad loans, effectively subsidizing cars for those who don’t pay their bills at the expense of those of us who do pay our bills, because we will end up having to pay more to make up the loss.

If all of this sounds familiar, you could be thinking of the Community Reinvestment Act, spawned by Carter but doubled down on by Clinton and Obama, by which the federal government forced banks to make mortgage loans on a racial basis lest they be accused of “redlining.” This was a primary cause of the 2008 economic crash.

Patrice Ficklin, head of the bureau’s Office of Fair Lending and Equal Opportunity, revealed that “we have found substantial and statistically significant disparities between the interest rates paid by African American, Hispanic, and Asian car buyers when compared to the interest rates paid by white car buyers with similar credit scores and other factors.
Really. Can we see some evidence of this?

No, we cannot.
[The CFPB] hasn’t published its research in detail and has instead proceeded to mount a political pressure campaign to remove dealer discretion in setting loan terms. “Guidance” from the agency sent to banks in March included advice on how to avoid running afoul of anti-discrimination laws in auto lending.

Message received. The banks that provide financing for the dealers began warning dealers to improve compliance or risk having flat fees imposed. In other words, the dealers’ profits on loans would be capped.
Knuckle under to intimidation and regard black skin as the ultimate qualification for a loan, or your profits will be capped. I didn’t think I would live to see things done this way in America.

CFPB chief Richard Cordray responded to a question on the bureau’s methodology this week at the Senate Banking Committee. “I want to be a little careful about talking about what we have found, because this is an ongoing investigatory effort where we’re working with the Justice Department.
That would be the Department of Social Justice run by Eric Holder, who has been clear that he sees it as his duty to advance the interests of what he calls “my people” at the expense of whites. This is why the Injustice Department refuses to prosecute civil rights violations if the victims are white, even in outrageously blatant instances of voter intimidation. For thorough documentation of this, refer to Injustice by former Justice Department lawyer J. Christian Adams.

Cordray continues:

“So the order of the day on those things is confidentiality unless or until you get to the point of taking some sort of public action, and so I want to be a little careful about not breaching that.”
“Careful” is an interesting way for Mr. Cordray to describe what he’s doing. It sounds like he wants to proceed with sentencing before anyone knows whether there will even be a trial.
What do we need trials for? Our rulers already know which race is guilty.


Guess which one is Patrice Ficklin.

On a tip from Varla.
http://moonbattery.com/?p=39285