People have been injured and insulted by foreclosures

The earning reports coming from Goldman Sachs and JPMorgan Chase show that the working people of America have not only been injured by the foreclosure crisis but they have also been insulted.

The balance sheets of these jumbo banks are in robust health, profits have spiked and the bonuses of the top brass are astronomical.

JPMorgan Chase reported $11.7 billion as profits and 26.9 billion to be paid as bonuses and compensation. Goldman Sachs touch a record of $13.4 billion in profits and $16.2 billion has been earmarked for bonuses etc.

These are the two that with few others predated on the hapless people and exposed them to risky mortgages. Ultimately this humbled the economy. But billions coming from the government pumped back life into them and they have returned to a new youth after experiencing near-death situation.

But the ‘earnings report’ from the others in America is dull – increased unemployment and unabated foreclosures with no end to be seen. It has been an unfair deal because it is Wall Street that set alight the fire of the foreclosure crisis allowing the economy to burn causing many to lose their houses and jobs.

But while the people are suffering in every corner of the country the pain is not equal. Those whose skins are tinted or black are once more putting up with the harshest blow from the crisis. The gap between the Blacks and the Whites has widened during the past one year. The spread has gone up from 5.4% to 7.2 %.

The unemployment among the Blacks now reads 16.2% – it being the highest in the last 27 years. Among the Hispanics the rate is 12.9% – both being much higher than the 9% unemployment rate among the Whites.

These racial discrepancies are intensely worrying. Inequality is challenging each citizen. It nibbles at the economic foundation of country and breaks apart communities. It may be worth noting that even prior to the onset of the last recession the inequality in income had been the highest since the time of the Great Depression.

Two years previously 1% of Americans belonging to the top layers pocketed income equal to the combined income of the bottom half. This gap is likely to widen as mass unemployment and foreclosures continue to tear apart the socio-economic fabric of the country.

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