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The Poor are to Blame for the Housing/Financial Crisis - Not | PowerOptions Web Log
Much of the focus of the country’s economic problems has been on the burst of the housing market’s bubble and the related credit crisis. While this focus is appropriate, the foreclosure rate has hit a record level and these problems are frequently blamed on “the poor.” However, much of the data shows that this is not the case. It is often assumed that those with lower income levels are a bad credit risk in the first place. In fact, foreclosure rates are comparable across all income levels. High foreclosure rates are found in many communities across the country. There are, however, significant and surprising exceptions. The current national foreclosure rate is approximately 1 in 450. However, states that are frequently regarded as more affluent, California, Nevada, Arizona and Florida, are all facing foreclosure rates of more than 1 in 200. Conversely, Mississippi, the poorest state in the US, has a...