The New York Times is carrying an interesting article about the city of Memphis and the shrinking ranks of the local black middle-class.
As a result of predatory lending and job loss, residents the majority-black city have seen decades of economic progress reversed, The Times reports. The article focuses on the role played by Wells Fargo, and outlines the mortgage lender’s targeted efforts to sell high-interest loans in black neighborhoods. The results are hallowed out neighborhoods and declining wealth for blacks and latinos in metro Memphis.
According to the article, the weath gap between white families and black families is growing. For every $1 the average white family has in wealth, the average black or latino family has only 16 cents.
I wanted to highlight this article because this is very clearly happening in Cleveland and Youngstown and Detroit. The difference is, many black families have been suffering economically in Rust Belt cities for 30 years. This foreclosure crisis only compounds the problem.