Author: ssegraves

Racial Predatory Loans Fueled Housing Crisis

ssegraves

A recent study points toward predatory lending practices aimed at minorities as the main reason for the U.S. housing meltdown.

Predatory lending aimed at racially segregated minority neighborhoods led to mass foreclosures that fueled the U.S. housing crisis, according to a new study published in the American Sociological Review.

The financial institutions likely to be found in minority areas tended to be predatory — pawn shops, payday lenders and check cashing services that “charge high fees and usurious rates of interest,” they said in the study.
“By definition, segregation creates minority dominant neighborhoods, which, given the legacy of redlining and institutional discrimination, continue to be underserved by mainstream financial institutions,” the study says.

So it’s those fat cats in their suits that have caused this ruckus.

Sure, I wouldn’t doubt that there is some predatory lending going on out there and it should be severely punished, but I’d bet dollars to donuts that Fannie Mae and Freddie Mac had some part in this as well. Either by being passive and not informing buyers about predatory loans or by not insuring that lenders did not carry on with such practices.

Education Funding

ssegraves

A quick thought for Tuesday. A lot of the hubbub over education involves funding, or the lack thereof. The notion that education is underfunded is not supported by fact, instead, the facts point the other direction, that federal education spending has seen enormous growth since the 1960s.

Maybe we should be looking at how money is spent rather than how much money is doled out. Being in the education field I can guarantee that there is a lot to learn.

SitePoint Podcast at BlogWorld & New Media Expo 2010

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Yep, you are reading that right, this year all four hosts of the SitePoint Podcast will be together in the same room for the first time. Patrick O’Keefe, Brad Williams, Kevin Yank, and myself are all headed to BlogWorld & New Media Expo in Las Vegas, Nevada where we’ll hang out with listeners (and non-listeners) and will also record and live broadcast a few shows. This is actually the first time we’ll meet in person since Kevin lives, works, and records the show from Melbourne, Australia.

There are also some other exciting things being planned for the conference which I can’t go into just yet. But be sure and check here and the SitePoint Podcast page for more details. If you are going to be at BlogWorld Expo this year, be sure and stop by, say hello, and stay for a chat.

An Idiot Abroad

ssegraves

There is a new documentary coming out on Sky1 in the United Kingdom called “An Idiot Abroad”. Ricky Gervais has taken a non-traveler and sent him to explore the Seven Wonders of the World. Hilarity ensues.

In some of my travels I have encountered people like the subject of this show. They’re not really idiots, they just do not have the desire to travel or leave their comfort zone of their home country. I’m sure some of it has to do with self-preservation and not putting oneself in harm’s way. Going abroad is intimidating for a lot of people, so I don’t hold it against this guy. The show does look hilarious though.

[A warning – there is nudity and foul language in the previews below]

http://www.youtube.com/watch?v=aUTH1coLIWE
An Idiot Abroad – Preview Part 1

http://www.youtube.com/watch?v=TChZa-GfAtA
An Idiot Abroad – Preview Part 2

Pass the Peace Pipe Hippie

ssegraves

I’m burned out. Yep, utterly burned out. There is an incessant bickering that I thought was part of the process but it turns out it is just ignorance attempting to out-stupefy the opposite ignorance. In case you have not caught on yet, I’m talking about politics and all of the argumentative and condescending commentary that is out there right now.

There is a time for discourse and we need such discourse to keep things balanced, but as of late, the discourse has turned into a ruckus. Wait, ruckus is too nice of a word, full out brawl is better. We have Glenn Beck making some of the most random comments I’ve heard while on the left there is a general consensus that everyone on the right is a bigoted racist who wants to invade Mexico. All of the chatter is like a giant ray gun pointed at my brain. I just can’t take it anymore.

I thought I could away from it by avoiding television news. I wouldn’t have to listen to Katie Couric read us a page from her notebook or Glenn Beck ramble on about freedoms. I thought I would be able to manage my Twitter account well enough to somewhat block out the continual rants from both sides. It all still trickles in. My primary source of news has long been articles written by actual economists and political science writers but I’m relying on it even more now.

What really amazes me is that people are still ranting about Sarah Palin. Really? If she is as useless and unimportant as people claim she is then if you stop talking about her, maybe she’ll stop being so important. By ranting you’re just perpetuating the whole thing.

That brings me to the issues that currently face the country. A jobs report came out today and it was not good news. The national unemployment rate continues to stay in the 9.5-9.7% range. This is an issue that President Obama and the House and Senate should be discussing fervently. Not pushing agendas, not looking for the best opportunity to drop a sound bite, but simply talking about options. Of course, this is only one issue, there are many others and I think for all of them, realistic discussions in which political prowess does not come into the mix would be a good thing.

The other thing that has my raised my blood pressure significantly lately is all of this talk about the Constitution and people’s rights. There are two camps here, both claiming that their understanding of the Constitution is the right one. To be honest, I think they’re both wrong. One side wants you to believe that the Constitution is a completely living document, open to interpretation and meant to be applied as needed. The other believes the Constitution is a completely strict document that needs to be taken literally. Both of these views go to the extremes. The way I see it is that the Constitution is living, but not in the way most think of it. It was meant to be changed, but only by amending it. It was also meant to be interpreted but not to the extreme that we should break it down to minutia and apply to every single possible permutation of an issue. To do so would not only be time consuming, it would be next to impossible.

What we need is a true understanding of a Constitutional republic. As a nation we have become so much more complicated than when founded, it is making adaptation difficult. It makes me wonder if people still really believe in the concept of states making their own decisions when it comes to politics. If people do then a lot of the bickering seems mighty overblown. We can be positive and yet have discourse if we remember how to actually debate something rather than parrot what our favorite television personality says. We need more readers of history and less of Twitter. We need more action and less activism. We need to grow up a little.

RIM’s Capitulation to the Saudis

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I have never been a BlackBerry user and if I have my way, I will never be one. The recent pandering to the Saudi government over data monitoring is just one more arrow in my quiver of reasons not to support Research in Motion by buying their products.

Now, I am not naive, I know the U.S. government has policies in place to monitor phone and internet traffic, but I do not see them bullying companies to turn over the data. Instead, they’re sly and probably employ a large number of hackers to help them monitor the airwaves. What bothers me about Saudi Arabia is their need to push the issue of monitoring under the guise of “safety” rather than what they really want, which is to know what their citizens are doing when they are not being watched in public. Sharia is the law of the land and as such, personal freedom takes a back seat to governmental moral “clarity” and cleansing. In plain terms, this ability to monitor BlackBerry traffic is going to be used not just to watch for terrorist activity but to enforce Sharia

Kill Off Comments?

ssegraves

After my recent post on boycotting BP I received a deluge of comments. Some were well thought out and others were typical troll style postings. The comments got me thinking about turning the feature off though, and oddly enough, there was a big discussion about comments starting at the same time.

It seems that Gruber’s thinking is along the lines of what I had in mind; If you are going to respond to something that someone writes, you should be able to do it in long form instead of short quips after a post. How many times do people go back to a comment they wrote on a blog to see if there has been a reply? Does commenting really generate discussion or allow trolls to interject themselves into worthwhile postings on the internet?

What say you? I am going to leave comments open for this post to see what people think, but in the future, they will probably be turned off.

BP Oil Spill – It Could Be Worse

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The BP spill is bad, I think we all agree about that, but it could be much, much worse. First, a little umbrella so that people do not poop all over this site because they think I am defending BP. British Petroleum and the companies that worked for them on the Deepwater Horizon are definitely responsible for the spill and should be held accountable. Now that that is out the way I can get on with the purpose of this post.

In 1979 a well named Ixtoc I was being drilled in the Gulf of Campeche about 62 miles offshore. At some point in the operation drilling mud circulation was lost and the well experienced a blowout. The blowout preventer was, at the time, not in line with the drill collars, rendering it ineffective. The spill is almost exactly the same except for the fact that Ixtoc I was in 161 feet of water. In the end, Pemex, the national oil company of Mexico and the owner of the well, lost 3.5 million barrels of oil into the Gulf of Mexico. Rather than paying residents on the coast of Texas who had experienced damage or loss of livelihood, Pemex claimed sovereign immunity and spent only $100 million to clean up the spill.

Ixtoc I Spill

The Ixtoc I spill has gone on record as being the worst accidental spill in history (incidentally, the worst spill in history was Saddam Hussein burning the Kuwaiti oil fields). Until the BP leak is completely sealed up and the areas effected by it cleaned, we will not know the full extent of the damage and how it compares to Ixtoc I, but I am going to guess that Ixtoc I will still take the prize as the worst accidental spill in history.

BP could have done the cowardly thing and run away from this spill much like Pemex did in 1979 but they made a conscience decision to clean it and fix it. Sure, their handling of the issue has been less than perfect, but they could have turned tail and run, leaving the British government to decide what to do. I really wish what was reported on the news was not the same old, “worst disaster in history”, not just because it isn’t true, but because it’s sensationalism at its worst.

A lot of folks are calling for the suspension of deepwater or even offshore drilling and I think that is a poor way to go about the future. The Deepwater Horizon tragedy is the first U.S. offshore spill in 40 years. It was the first offshore spill on a rig anywhere in the world in 20 years. These incidents are few and far between and yes, while there should be more rigorous safety checks on the platforms, the idea that getting rid of offshore drilling would completely rid the world of oil disaster one-offs is absurd. Rather than blaming the oil, blame the people who caused the spill and figure out ways to keep it from happening again.

Boycott BP, Or Not – A Lesson in Distribution

ssegraves

The BP oil disaster has been on everyone’s mind lately and for good reason. We won’t know the full affect on the region for months or maybe years and the spill is another haphazard mistake from BP, the last one being the Texas City refinery explosion. I know BP will clean up the mess, it’s their responsibility (though the federal government by law has a responsibility as well), what bothers me is the chatter on the internet and television about boycotting British Petroleum.

I saw these two things this morning and decided that something, no matter how little audience I get, needed to be written. There seems to be a large misunderstanding of how the industry operates and how people are able to pump gasoline into their cars each and every day. I aim to clear that up, if only by a little bit.

First, it needs to be known that oil is traded and sold at a very fast pace all day long. Because of this, refineries share crude oil, or feedstock. This type of sharing allows the refineries to be constantly supplied and making end products. Some refineries only make more feedstocks, usually for chemical plants. Others produce gasoline and diesel fuel and chemicals. The gasoline that is produced is moved to terminals that are located all over the country in strategic places. These terminals are privately owned and are essentially holding facilities for gasoline. There is no segregation of brand at these facilities, just stockpiles of fuel.

The local gas stations then send their trucks to the terminal to buy a load of fuel for sale at their station. En-route to the gas station the truck driver may mix an additive to the fuel depending on what brand it is being sold under (Chevron, Shell, etc.) and then pump the fuel into the underground tanks at the station. What you end up with is the exact same gasoline at every station, minus the additives. There is no discernible way to know where your gasoline came from. Even though a gas station has a BP logo, Shell may have been the one to refine the oil.

The same essentially goes for other oil based products.

What is the point in all of this? Well, the idea that one can boycott BP and make it go under is based on the false premise that one can distinguish BP gasoline from any other. In all of this, people are looking for someone to blame, to make pay and they’ve understandably gone after BP. However, at the same time, these same people could actually be making a difference by volunteering to help clean birds or scoop up crude. But, I guess it’s easier to attempt to boycott something that is near impossible to boycott rather than actually doing something.