Black Wealth Now!!!

I have written recently about all the financial upheavals going on in the country. One reason is that I’ve noticed a trend and the trend continued today. The trend is this, Wall Street gets what it wants, not necessarily what it needs.

The federal government has decided that they should write billions of dollars in checks and send them to us Americans. But there is a condition. We shouldn’t save or pay off debt when the money comes. No! The government wants us to spend those checks on TVs, iPods, clothes, anything to keep the economy chugging for at least another quarter. They aren’t giving us enough to impact the economy for any longer then a single quarter.

And the democrats, while doling out checks with the one hand, symbolically voted to raise taxes on anyone making more then $31,000 per year in an obvious effort to take back those checks and more with the other hand.

We bail out investors at Bear Stearns to the tune of $30 billion dollars because they mismanaged their money, lied about their financial health, then cried like babies for a bail out. JP Morgan ended up buying Bear Stearns for $2 bucks a share. What a deal. It couldn’t have happened if you and I, the American taxpayers, didn’t take on all the debt and make them such a bargain for JP.

Now, a huge rate cut by the fed to increase liquidity in the market. It will only work if everyone now chooses to borrow and spend. Now may be the time to do it. Look at how low the rates are now. Who cares if you might not have a job in 6 months the way the economy is going write now?

Borrowing and spending is how the White House and Congress plan to solve our economic woes.

What gives these politicians the right to tell us how to manage our money? If any of you listen to these clowns, you deserve the financial ruin that will be headed your way.

These politicians are on their way to bankrupting Medicare, Medicaid and Social Security. They are on their way to destroying the Oil industry, the Pharmaceutical industry, Wal-Mart and the manufacturing sector in our country. Do not listen to anything they say about punishing the rich. They are rich and the rich will never punish themselves. And in our free and capitalist country, why should we begrudge the rich for being rich if it was honestly earned or inherited?

Wall Street gets what it wants because its on the dole and politicians want to control an America that is completely on the dole. We need to stop bailing out corporations and stop bailing out individuals. The system is designed to correct itself when market forces are allowed to freely play themselves out. The only thing our politicians can do by intervening is screw things up. Watch out, it will be a bumpy road.

Peace.

On the left is a picture of Nat Turner, leader of the largest slave revolt in American history in 1831. Click here to read about it.

Many people felt comfortable voting for Barack Obama in part because of something I keep hearing on the news channels. People think and feel that Barack Obama “transcends race.”

Why is it so important to so many people that in order for a Black politician to be considered as a viable candidate for the presidency, that he must “transcend race?”

Transcending race, as far as I know, has never been a required characteristic of any other presidential candidate. Ronald Reagan, George Bush 1 and 2, Bill Clinton, Jimmy Carter, Richard Nixon, none of these guys were ever said to transcend race. Bill Clinton got some good press in the African-American community but he never transcended race.

In comes Jeremiah Wright. Personally, I find his statements offensive and I wouldn’t attend his Church. On the other hand, while I think his statements are controversial and not truly gospel, I don’t think his statements contain as much rage and anger and hate as the media has portrayed.

First of all, there is the style of Jeremiah Wright. His style of preaching is in the tradition of many Black preachers. There is an element of showmanship, imagery and hyperbole that I think gets mis-characterized by the media as anger. However, I’ve seen preachers use the same style to say what a beautiful day it is outside.

Second, I think that his rhetoric stirs controversy because he confronts the issue of America’s racial history head on. Its not something that comes up in polite conversation. The conversation itself makes many people uncomfortable. It makes people wonder if they can trust you.

And this brings me to the reason why an image of Nat Turner is in the upper left corner of this post. The rebellion led by Nat Turner put fear into the hearts of all southern whites. They put their slaves on lock-down during the rebellion, they tried to hide knowledge of the rebellion from them and they threatened them not to join the revolt. Slave owners banded together, loaded their rifles and pistols and stood together ready to violently suppress any hint of insurrection on their plantations.

Slave owners thought that they were superior and deluded themselves into thinking that Blacks enjoyed and appreciated their forced servitude. They believed they saved them from their savagery and brought them Christianity. Secretly, however, they greatly feared the slaves enough to force ignorance upon them and to deny them their humanity and they punished any who got “uppity.”

Jeremiah Wright, based on what I heard, is stuck in the past. He is anti-American which I find the most offensive (and there is no law against it). However, I think people are going too far in calling him racist and angry.

Another thing is that Jeremiah Wright is a liberal democrat. His rhetoric is no different then the rhetoric used by other liberal democrats to justify “taxes on the rich” or withdrawing from an “illegal war.” The only difference is that the rhetoric is being used against white liberal democrats for the first time in their lives in the midst of a presidential primary campaign.

Jeremiah Wright may just be a modern day Nat Turner in the eyes of many people and his connection to Barack Obama brings up the question in their minds- Can we trust Barack Obama or does he also think like “them”?

Peace

Sen. Barack Obama pulled out all the stops today to cover his rear end over some remarks made by his pastor of the last 20 years, Rev. Jeremiah Wright.

Sen. Obama proved that he is an effective speech maker however, I must say that I was left empty.

He didn’t divorce himself from his association with Jeremiah Wright but he says he doesn’t approve of his remarks.  He says his white grandmother said things that made him cringe and compares his relationship to her with his relationship to Rev. Wright.

I don’t get it.  He seems to have a history of not confronting outright racist remarks from the people closest to him yet he wants to start a dialogue on race.   It seems that he should have started talking with some people about race matters going back many, many years before this day.

I understand that many politicians, black and white, Democrat and Republican,  use race and race issues whenever it suits them around election time.  I don’t excuse politicians that lecture at universities that ban interracial dating.  I don’t excuse politicians that divide the electorate along racial lines to win votes.  I don’t excuse the Clintons for playing subtle games to attach negative  racial stereotypes to their opponent.   But Barack Obama was supposed to rise above all this and he would have if his associations weren’t exposed.

Barack Obama may agree with the things that Jeremiah Wright says or he may not.  I think he needs to be honest and make his case one way or another.  I think if his speech is the start of a dialogue then we are in for a long boring discussion about nothing because that what today’s speech was in my mind.

This is just my take on the Obama speech on race.  This is obviously just my take on his speech.  I thought it was a very good speech but I also think it left a few questions unanswered.  Taken at face value, Obama is just a guy going to a Church with a pastor that occasionally uses “incendiary” language.  Or, he is a guy that joined a Church 20 years ago and stayed while willingly listening to reverse racist, class warfare and anti-America rhetoric.

Mark this day as the first day in the 2008 democratic party primary campaign that Barack Obama officially became “just another politician.”

Peace.

Just thinking about turmoil in the Democratic party caused by the long primary battle between Sens. Hillary Clinton and Barack Obama has led me to wonder if there is any dilemma for Black republicans.

Black republicans make a small minority of the Black electorate and they normally wouldn’t care about the outcome of a Democratic primary because they would vote for the more conservative, republican candidate regardless of who democrats decide to pit against republicans.

Because they make up such a small minority of the Black electorate, Black republicans often find themselves in uncomfortable positions at family reunions, Thanksgiving dinners and Christmas parties with family members as they are forced to become the spokespeople and defenders of republican/conservative principles, Trent Lott-style comments or the latest parody of Jesse Jackson or Al Sharpton heard on the Rush Limbaugh show to their parents, cousins, uncles, siblings, etc.

These kinds of heated debates can take the fun out of an innocent celebration and get-together.  How much more uncomfortable will it be as a Black republican to say that you will vote against possibly the first Black president of the U.S. ???

Is it easier to go along in order to get along?  Is it easier to remain as an undercover brother, hiding your true political leanings while secretly supporting John McCain for President?  Or, do you be true to the republican cause, defending your beliefs to the bitter end, making the case against voting for the first Black president no matter how heated the exchanges get between you and your liberal-leaning family members and friends?

The only honest thing to do is to stay honest to what you believe.  The polite thing to do is to not get into these discussions in the first place.  But what are you going to do?

You tell me.

Peace

Black Issues Conference Promotes Financial Stability

“Income is what you earn. Wealth is what you own,” Pinkett said.

He said the black community accumulates $1.5 trillion in income and that the net worth of the average white household compared to the average black household is $121,000 to $19,000.

Pinkett advised that if students are going to find economic empowerment, they must begin to think “entrepreneurially.” Click here to read more…

Clinton’s Legacy Isn’t So Black and White

Hillary Clinton has deployed former President Bill Clinton to many parts of the country for the specific purpose of delivering the black vote, aiming to remind African-Americans of the good times when Mr. Clinton was president. Which raises the question: Why do so many people think the Clinton years were good times for black America?

… But there is evidence that Mr. Clinton’s unmatched popularity among blacks confused many about the true economic impact of his presidency. Click here to read more…

King’s Dream Deferred, One More Victim of the Subprime Mortgage Crisis

As we spend this month celebrating the achievements of African Americans, I’m saddened by a report that concludes that the subprime mortgage crisis has caused the largest loss of wealth for black and Latino homeowners in modern U.S. history.

The erosion of wealth is staggering. Click here to read more…

The Looming Retirement Crisis in the African American Community

I don’t lose sleep about a lot of things but when I think about the retirement crisis facing middle-and upper-income African-Americans, I become a certified insomniac.

After struggling so long to join the middle class and fulfill the American dream, millions of African-Americans are at risk of falling behind in their golden years. Ten years of research on the saving and investing habits of African-Americans and Whites who earn at least $50,000 annually show that median savings for Blacks is just $48,000 compared to $100,000 for Whites.

The ages of those surveyed were roughly the same (50 for Blacks and 52 for Whites) and they had comparable income levels ($75,000 for Blacks and $81,000 for Whites). When you do the math, factoring in monthly savings rates and a modest annual return of 8 percent, both groups will be far short of what they need to retire at 65 with anything close to their current income level, even with Social Security. Click here to read more…

Barack Obama has 28 more delegates then Hillary Clinton. He won 13 states and Hillary won 8 states.

The challenger is now the one to beat.

Barack Obama takes the lead.

We’re still at war.

The economy is weakening.

Congress is spending like a drunken sailor.

Wake me when its over.

Toni Morrison giveth and I guess she also taketh away.

Author Toni Morrison dubbed President Bill Clinton the first Black President back in the 90’s.

The moniker stuck with the president ever since…until recently that is.

Toni Morrison has revoked Bill Clinton’s status as the first black president and she now is endorsing Barack Obama for president.

And the beat goes on…

Toni Morrison endorses Barack Obama

1st Black Prez title revoked

Senator Kennedy endorses Barack Obama

Caroline Kennedy endorses Barack Obama

People of color are more then 3 times as likely to have subprime loans.

Some are calling the subprime mortgage crisis “financial apartheid” because so many minorities are caught up in this wealth draining financial crisis.

Now, people want to blame financial institutions for targeting African Americans for subprime loans. Basically, banks made money easy to access, easy to borrow at high interest rates to individuals that should have been denied such loans.

The victims of this mess and the pandering politicians call this greed.

I ask, who was greedy, the borrower or the lender? There was obviously greed on both sides of the coin. Asking for money you can’t afford to pay back is pretty greedy. Giving money to people you know can’t pay because you think the collateral (the house) will only appreciate, more then covering your risk exposure is also greed.

Greed has buoyed our economy since the tech bubble when people bought internet stocks with absolutely no revenue stream and selling at huge multiples because of the promise of instant wealth.

Greed causes people to do stupid things. When people see someone else making what looks like easy money, everybody wants to get in on the act. And not because all these latecomers are so financially savvy but because they are greedy. Act now and you’ll cash out big is the belief.

Did many African Americans get suckered into risky loans? Yes, but the only thing that was really risky about the loans was the borrowers and not the lenders.

There is a cost for ignorance, particularly financial ignorance, in the world today. Financial ignorance cost borrowers their financial dreams and it always will. How does one person know how much they can truly borrow and spend and save and invest? By understanding their choices and goals and markets and economics.

So how do African Americans end “financial apartheid?” By leaving the financial ghetto of ignorance and apathy and getting the highest education possible and by studying finance and economics.

Click here to read the article on financial apartheid.