African Americans had every reason to celebrate Barack Obama's election in 2008. History was made. Then reality set in. Economically speaking, the Obama era has been a five-year nightmare for Black America.
The unemployment rate for blacks now stands at 13.7%, almost twice the rate for all eligible workers. Under other circumstances, 13.7% unemployment would be a national crisis; it would dominate the headlines and the nightly news and the editorial pages; 13.7% unemployment would have any politician in office fearing for his or her career. In Washington, there would be blue-ribbon commissions, congressional hearings, and expert panels. But because we're talking about 13.7% of eligible black workers, there is no outrage. Except for the anger and pain felt within the black community, that jobless rate is a silent scandal.
The wealth of African Americans is in similarly dire straits. Many black families saw their personal wealth, significant amounts of it invested in their homes, evaporate in the economic collapse of 2007-2009, triggered by a housing meltdown in which African Americans were disproportionately targeted for shoddy subprime mortgage loans. As of 2010, the median net wealth of black families was $4,900; of white families, $97,000. A third of black households had zero or negative wealth. Gains made across generations were wiped out like that.
Consider these statistics the vital signs of Black America in the Obama era. As Laura Gottesdiener writes in her debut at TomDispatch, there may be no more vivid illustration of their collective economic distress in these years than the foreclosure crisis pocking the inner cities of Atlanta, Chicago, Detroit, Minneapolis, and Philadelphia, among other places. Gottesdiener's new book, A Dream Foreclosed: Black America and the Fight for a Place to Call Home, is a people's history of the financial crisis that jolted this country and has never ended. It has been hailed by Naomi Klein as "riveting" and Noam Chomsky as a "most valuable study... with historical depth and analytical insight." Andy Kroll
The Great Eviction
The Landscape of Wall Street's Creative Destruction
By Laura Gottesdiener
We cautiously ascend the staircase, the pitch black of the boarded-up house pierced only by my companion's tiny circle of light. At the top of the landing, the flashlight beam dances in a corner as Quafin, who offered only her first name, points out the furnace. She is giddy; this house -- unlike most of the other bank-owned buildings on the block -- isn't completely uninhabitable.- Advertisement -
It had been vacated, sealed, and winterized in June 2010, according to a notice on the wall posted by BAC Field Services Corporation, a division of Bank of America. It warned: "entry by unauthorized persons is strictly prohibited." But Bank of America has clearly forgotten about the house and its requirement to provide the "maintenance and security" that would ensure the property could soon be reoccupied. The basement door is ajar, the plumbing has been torn out of the walls, and the carpet is stained with water. The last family to live here bought the home for $175,000 in 2002; eight years later, the bank claimed an improbable $286,100 in past-due balances and repossessed it.
It's May 2012 and we're in Woodlawn, a largely African American neighborhood on the South Side of Chicago. The crew Quafin is a part of dubbed themselves the HIT Squad, short for Housing Identification and Target. Their goal is to map blighted, bank-owned homes with overdue property taxes and neighbors angry enough about the destruction of their neighborhood to consider supporting a plan to repossess on the repossessors.
"Anything I can do," one woman tells the group after being briefed on its plan to rehab bank-owned homes and move in families without houses. She points across the street to a sagging, boarded-up place adorned with a worn banner -- "Grandma's House Child Care: Register Now!" -- and a disconnected number. There are 20 banked-owned homes like it in a five-block radius. Records showed that at least five of them were years past due on their property taxes.
Where exterior walls once were, some houses sport charred holes from fires lit by people trying to stay warm. In 2011, two Chicago firefighters died trying to extinguish such a fire at a vacant foreclosed building. Now, houses across the South Side are pockmarked with red Xs, indicating places the fire department believes to be structurally unsound. In other states -- Wisconsin, Minnesota, and New York, to name recent examples -- foreclosed houses have taken to exploding after bank contractors forgot to turn off the gas.
Most of the occupied homes in the neighborhood we're visiting display small signs: "Don't shoot," they read in lettering superimposed on a child's face, "I want to grow up." On the bank-owned houses, such signs have been replaced by heavy-duty steel window guards. ("We work with all types of servicers, receivers, property management, and bank asset managers, enabling you to quickly and easily secure your building so you can move on," boasts Door and Window Guard Systems, a leading company in the burgeoning "building security industry.")
The dangerous houses are the ones left unsecured, littered with trash and empty Cobra vodka bottles. We approach one that reeks of rancid tuna fish and attempt to push open the basement door, held closed only by a flimsy wire. The next-door neighbor, returning home, asks: "Did you know they killed someone in that backyard just this morning?"- Advertisement -
The Equivalent of the Population of Michigan Foreclosed
Since 2007, the foreclosure crisis has displaced at least 10 million people from more than four million homes across the country. Families have been evicted from colonials and bungalows, A-frames and two-family brownstones, trailers and ranches, apartment buildings and the prefabricated cookie-cutters that sprang up after World War II. The displaced are young and old, rich and poor, and of every race, ethnicity, and religion. They add up to approximately the entire population of Michigan.
However, African American neighborhoods were targeted more aggressively than others for the sort of predatory loans that led to mass evictions after the economic meltdown of 2007-2008. At the height of the rapacious lending boom, nearly 50% of all loans given to African American families were deemed "subprime." The New York Times described these contracts as "a financial time-bomb."