From: "Matthew J. Miszewski" <mjmiski@execpc.com>
Date: Wed, 11 Dec 1996 13:19:55 -0800 (PST)
To: "E. Allen Smith" <EALLENSMITH@ocelot.Rutgers.EDU>
Subject: Re: Redlining
Message-ID: <3.0.32.19961211151926.0068b9f0@execpc.com>
MIME-Version: 1.0
Content-Type: text/plain


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At 11:31 AM 12/11/96 EDT, E. Allen Smith wrote:
>From:	IN%"mjmiski@execpc.com"  "Matthew J. Miszewski" 11-DEC-1996 03:52:03.23
>
>>This is the essence of, at least, my disagreement with you Red.  I dont
>>agree that redlining doesnt harm people.  You see no harm.  I do.
>
>	Of course redlining causes harm to those who are redlined... they
>can't get credit. But the same can be said of any system of keeping
>track of who is likely to repay credit; it means that someone who has
>defaulted on past loans won't get future ones. Quite simply, while I
>would agree with you that racism certainly persists (it would be
>difficult for me to grow up in the South and not see this), I would
>argue that you have no evidence for that the basic motivation behind
>redlining is that the people in such areas are less likely to repay
>credit.

Actually, my assertion was that the basic motivation was racism and
ignorance.  My example of student loan default rates should clear that up.
College graduates generally live outside of redlines and yet are regularly
offered credit.  And yet default rates on student loans are outrageous (the
government backing of these loans is irrelevant to individual
creditworthiness).


>	-Allen

Matt
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