Financial Crisis Shrinks Black Middle Class

From The American Prospect (http://prospect.org):

Two recent reports have highlighted the crippling effects of the subprime mortgage crisis on black families. The first, a Pew study (http://www.pewstates.org/research/reports/pursuing-the-american-dream-85899403228) on income and wealth inequality from one generation to the next, showed that only children of the top two quintiles of the wealth distribution—an overwhelmingly white group—had greater wealth than their parents. Half of black children raised in the bottom quintiles stayed there, and blacks on the whole were more likely to be downwardly mobile.

A report (http://www.washingtonpost.com/business/economy/for-black-americans-financial-damage-from-subprime-implosion-is-likely-to-last/2012/07/08/gJQAwNmzWW_story.html) from The Washington Post, meanwhile, examines the lasting impact on black families’ economic prospects that could stem from their poor credit ratings, which dropped sharply during the recession. With black families more likely to have taken out subprime loans and to have borne the burden of unemployment, their credit scores have suffered, and the black middle class is shrinking as a result.

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