An economic Hurricane Katrina could be hitting in black America very soon. As you might have heard, the subprime mortgage market appears to be bottoming out and a lot of black homeowners stand to get swept away.

If you remember, during the last election cycle President Bush made a big to-do about how black homeownership grew with him in office. However, what he did not say was how these loans were made. Way too many of these loans have black lenders in over their heads.

Let’s look at the statistics, as quoted by those in the know (bolding mine):

(John) Gapper (of the Financial Times) continues, “Some 52 percent of loans made to black people in 2005 were subprime and 80 percent of these subprime loans were exploding ARMs.” (Adjustable Rate Mortgage). Martin Eakes, a credit union CEO claims estimates that 2.2 million families could lose their homes to foreclosure. This catastrophe, claims Eakes, could become “the largest loss of African-American wealth in American history.“

So, my calling this an “economic Hurricane Katrina” is no exaggeration. We could be in for huge monetary collapse in black America, virtually wiping away much of the progress of the last 30 years.

I shudder to think what this is going to look like.

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