From Ezra Klein:
The mortgage meltdown that preceded the Great Recession decimated minority wealth in my neighborhood, a majority African-American suburban community in South Chicago. Housing prices fell, and remain more than 30 percent below what they were in 2006. Our area is still dotted with dozens of fading for sale signs, sometimes in front of foreclosed or empty homes. Things never fully recovered.
Race and segregation play a big role in this story. Five of the 10 Chicago zip codes with the highest foreclosure rates are at least 94 percent African-American.
So in other words, the Bush administration and a Democratic Congress gave people mortgages they could not pay in some sort of vague notion that this would help them. And President Obama -- who helped create this mess -- has spent seven years running away from the problem.And this is a national problem. As one shocking 2011 report concluded: "Approximately one-quarter of all Latino and African-American borrowers have lost their home to foreclosure or are seriously delinquent, compared to just under 12 percent for white borrowers."