From: IN%"mjmiski@execpc.com" "Matthew J. Miszewski" 11-DEC-1996 16:21:56.21

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).

That some groups not within redlines have high default rates is not an argument against groups within redlines having high default rates. The market distortion caused by government sponsorship is certainly relevant to whether individuals are offered credit; I would suggest that in many cases the students in question would not be offered credit, as per their high default rates, if it were not for government sponsorship removing the risk from the lender. You have also not bothered to answer the criticisms from Mr. Rackham about why, if the sole motivations were racism and ignorance, people would not be offering the residents of such areas loans; as (he?) pointed out, this would appear to be a particularly attractive move for middle-class blacks, if your assertion was the case. -Allen