In yet another demonstration of his duplicity Trevor Phillips is now trying to say the Banking Crisis was caused by 'racism' as bankers were giving dodgy loans with high interest rates to black Americans who could not pay the interest on the loans back.
The reason why they were giving black people loans in the first place whose income was insufficient to repay the loans was because positive discrimination and anti-institutional racism laws passed by the Clinton administration, required banks to give loans to black people proportionate to their size in the population.
Failure to give out the correct quota of loans was regarded by the law as proof of racism in the banks, and they could be fined.
Therefore they gave black people loans as the moment they refused them loans, then people like Barack Obama working for the Far Left Acorn community project would sue the banks for racism and get their clients hundreds of thousands of dollars ;
So black people who should never have been loaned the money on the basis of their incomes and capacity to repay were given loans they did not repay, causing the credit crisis. In order to protect these loans globally traded fradulent trading instruments were also sold by the banks which when the mortgages stopped being paid, were revealed to be worthless. Debt piled on top of debt went toxic and poisoned the whole banking system.
The blame falls squarely on President Clinton and the same sort of far left idiots like Trevor Phillips who impose their laws in the name of multi-culturalism and diversity.
Multi-culturalism caused the credit crisis.
In the name of multi-culturalism the US government imposed racist laws that gave blacks in America unfair access to credit and loans on the basis solely of their race, and then this devastated the global economy.
The bankers got their money back from the government, but the poor of all races, now bear the burden of this moronic socialist attempt to use political correctness and far left ideology to manipulate capitalism into funding communist social engineering projects.
Calling on the Government to ensure that the programme of public sector cuts does not fall disproportionately on minorities, Mr Phillips will warn that discrimination can have unexpected economic consequences.
Addressing the Policy Exchange think tank, he will argue that the phenomenon of subprime home loans, which led to the 2008 banking collapse, emerged because even wealthy black families could not obtain regular mortgages.
A number of banks involved in the crash, including Lehman Brothers and Royal Bank of Scotland (RBS), were over reliant on toxic subprime loans to customers who could not afford to maintain repayments.
Mr Phillips will say: “I know it's not a thing that the bankers and economists like to talk about, but the American financial crisis was precipitated at least in part by racial prejudice.
“Why were so many minority families taking these expensive loans?
Because discrimination left them with no choice.
“The rapid growth of the sub-prime market in the past decade probably owed more to the history of racial discrimination than any other factor."
Mr Phillips said before the crash that black families in the US were more likely than white people to be charged higher interest rates and have a subprime loan.
In order to prevent a repeat of the problem here during the recovery, he said the Equalities Commission would carry out a review of the Coalition’s cuts programme.
Mr Phillips will say: “Racism did not cause the crisis … we would probably have faced a meltdown at some point even if all the loans had been to white folks.
“But there is no doubt that when the full story is unravelled we'll find that a racial factor did play a role in what happened.
“We now know what it led to. Perhaps now is the time to make sure that we don't repeat the mistakes we made going into recession on the way out.
“The spending review and the cuts that follow must not fall disproportionately on already disadvantaged social groupings.”