VII. “A Lot Of People Fell By The Way”

Speculators in North Lawndale, and at the edge of the black ghettos, knew there was money to be made off white panic. They resorted to “block-busting”—spooking whites into selling cheap before the neighborhood became black. They would hire a black woman to walk up and down the street with a stroller. Or they’d hire someone to call a number in the neighborhood looking for “Johnny Mae.” Then they’d cajole whites into selling at low prices, informing them that the more blacks who moved in, the more the value of their homes would decline, so better to sell now. With these white-fled homes in hand, speculators then turned to the masses of black people who had streamed northward as part of the Great Migration, or who were desperate to escape the ghettos: the speculators would take the houses they’d just bought cheap through block-busting and sell them to blacks on contract.

To keep up with his payments and keep his heat on, Clyde Ross took a second job at the post office and then a third job delivering pizza. His wife took a job working at Marshall Field. He had to take some of his children out of private school. He was not able to be at home to supervise his children or help them with their homework. Money and time that Ross wanted to give his children went instead to enrich white speculators.

“The problem was the money,” Ross told me. “Without the money, you can’t move. You can’t educate your kids. You can’t give them the right kind of food. Can’t make the house look good. They think this neighborhood is where they supposed to be. It changes their outlook. My kids were going to the best schools in this neighborhood, and I couldn’t keep them in there.”

Mattie Lewis came to Chicago from her native Alabama in the mid-’40s, when she was 21, persuaded by a friend who told her she could get a job as a hairdresser. Instead she was hired by Western Electric, where she worked for 41 years. I met Lewis in the home of her neighbor Ethel Weatherspoon. Both had owned homes in North Lawndale for more than 50 years. Both had bought their houses on contract. Both had been active with Clyde Ross in the Contract Buyers League’s effort to garner restitution from contract sellers who’d operated in North Lawndale, banks who’d backed the scheme, and even the Federal Housing Administration. We were joined by Jack Macnamara, who’d been an organizing force in the Contract Buyers League when it was founded, in 1968. Our gathering had the feel of a reunion, because the writer James Alan McPherson had profiled the Contract Buyers League for The Atlantic back in 1972.

Weatherspoon bought her home in 1957. “Most of the whites started moving out,” she told me. “‘The blacks are coming. The blacks are coming.’ They actually said that. They had signs up: Don’t sell to blacks.”

Before moving to North Lawndale, Lewis and her husband tried moving to Cicero after seeing a house advertised for sale there. “Sorry, I just sold it today,” the Realtor told Lewis’s husband. “I told him, ‘You know they don’t want you in Cicero,’ ” Lewis recalls. “ ‘They ain’t going to let nobody black in Cicero.’ ”

In 1958, the couple bought a home in North Lawndale on contract. They were not blind to the unfairness. But Lewis, born in the teeth of Jim Crow, considered American piracy—black people keep on making it, white people keep on taking it—a fact of nature. “All I wanted was a house. And that was the only way I could get it. They weren’t giving black people loans at that time,” she said. “We thought, ‘This is the way it is. We going to do it till we die, and they ain’t never going to accept us. That’s just the way it is.’

“The only way you were going to buy a home was to do it the way they wanted,” she continued. “And I was determined to get me a house. If everybody else can have one, I want one too. I had worked for white people in the South. And I saw how these white people were living in the North and I thought, ‘One day I’m going to live just like them.’ I wanted cabinets and all these things these other people have.”

White flight was not an accident—it was a triumph of racist social engineering.

Whenever she visited white co-workers at their homes, she saw the difference. “I could see we were just getting ripped off,” she said. “I would see things and I would say, ‘I’d like to do this at my house.’ And they would say, ‘Do it,’ but I would think, ‘I can’t, because it costs us so much more.’ ”

I asked Lewis and Weatherspoon how they kept up on payments.

“You paid it and kept working,” Lewis said of the contract. “When that payment came up, you knew you had to pay it.”

“You cut down on the light bill. Cut down on your food bill,” Weatherspoon interjected.

“You cut down on things for your child, that was the main thing,” said Lewis. “My oldest wanted to be an artist and my other wanted to be a dancer and my other wanted to take music.”

Lewis and Weatherspoon, like Ross, were able to keep their homes. The suit did not win them any remuneration. But it forced contract sellers to the table, where they allowed some members of the Contract Buyers League to move into regular mortgages or simply take over their houses outright. By then they’d been bilked for thousands. In talking with Lewis and Weatherspoon, I was seeing only part of the picture—the tiny minority who’d managed to hold on to their homes. But for all our exceptional ones, for every Barack and Michelle Obama, for every Ethel Weatherspoon or Clyde Ross, for every black survivor, there are so many thousands gone.

“A lot of people fell by the way,” Lewis told me. “One woman asked me if I would keep all her china. She said, ‘They ain’t going to set you out.’ ”

VIII. “Negro Poverty is not White Poverty”

On a recent spring afternoon in North Lawndale, I visited Billy Lamar Brooks Sr. Brooks has been an activist since his youth in the Black Panther Party, when he aided the Contract Buyers League. I met him in his office at the Better Boys Foundation, a staple of North Lawndale whose mission is to direct local kids off the streets and into jobs and college. Brooks’s work is personal. On June 14, 1991, his 19-year-old son, Billy Jr., was shot and killed. “These guys tried to stick him up,” Brooks told me. “I suspect he could have been involved in some things … He’s always on my mind. Every day.”

Brooks was not raised in the streets, though in such a neighborhood it is impossible to avoid the influence. “I was in church three or four times a week. That’s where the girls were,” he said, laughing. “The stark reality is still there. There’s no shield from life. You got to go to school. I lived here. I went to Marshall High School. Over here were the Egyptian Cobras. Over there were the Vice Lords.”

Brooks has since moved away from Chicago’s West Side. But he is still working in North Lawndale. If “you got a nice house, you live in a nice neighborhood, then you are less prone to violence, because your space is not deprived,” Brooks said. “You got a security point. You don’t need no protection.” But if “you grow up in a place like this, housing sucks. When they tore down the projects here, they left the high-rises and came to the neighborhood with that gang mentality. You don’t have nothing, so you going to take something, even if it’s not real. You don’t have no street, but in your mind it’s yours.”

Video: The Guardian of North Lawndale

We walked over to a window behind his desk. A group of young black men were hanging out in front of a giant mural memorializing two black men: In Lovin Memory Quentin aka “Q,” July 18, 1974 ❤ March 2, 2012. The name and face of the other man had been spray-painted over by a rival group. The men drank beer. Occasionally a car would cruise past, slow to a crawl, then stop. One of the men would approach the car and make an exchange, then the car would drive off. Brooks had known all of these young men as boys.

“That’s their corner,” he said.

We watched another car roll through, pause briefly, then drive off. “No respect, no shame,” Brooks said. “That’s what they do. From that alley to that corner. They don’t go no farther than that. See the big brother there? He almost died a couple of years ago. The one drinking the beer back there … I know all of them. And the reason they feel safe here is cause of this building, and because they too chickenshit to go anywhere. But that’s their mentality. That’s their block.”

Brooks showed me a picture of a Little League team he had coached. He went down the row of kids, pointing out which ones were in jail, which ones were dead, and which ones were doing all right. And then he pointed out his son—“That’s my boy, Billy,” Brooks said. Then he wondered aloud if keeping his son with him while working in North Lawndale had hastened his death. “It’s a definite connection, because he was part of what I did here. And I think maybe I shouldn’t have exposed him. But then, I had to,” he said, “because I wanted him with me.”

From the White House on down, the myth holds that fatherhood is the great antidote to all that ails black people. But Billy Brooks Jr. had a father. Trayvon Martin had a father. Jordan Davis had a father. Adhering to middle-class norms has never shielded black people from plunder. Adhering to middle-class norms is what made Ethel Weatherspoon a lucrative target for rapacious speculators. Contract sellers did not target the very poor. They targeted black people who had worked hard enough to save a down payment and dreamed of the emblem of American citizenship—homeownership. It was not a tangle of pathology that put a target on Clyde Ross’s back. It was not a culture of poverty that singled out Mattie Lewis for “the thrill of the chase and the kill.” Some black people always will be twice as good. But they generally find white predation to be thrice as fast.

Is affirmative action meant to increase “diversity”? If so, it only tangentially relates to the specific problems of black people.

Liberals today mostly view racism not as an active, distinct evil but as a relative of white poverty and inequality. They ignore the long tradition of this country actively punishing black success—and the elevation of that punishment, in the mid-20th century, to federal policy. President Lyndon Johnson may have noted in his historic civil-rights speech at Howard University in 1965 that “Negro poverty is not white poverty.” But his advisers and their successors were, and still are, loath to craft any policy that recognizes the difference.

After his speech, Johnson convened a group of civil-rights leaders, including the esteemed A. Philip Randolph and Bayard Rustin, to address the “ancient brutality.” In a strategy paper, they agreed with the president that “Negro poverty is a special, and particularly destructive, form of American poverty.” But when it came to specifically addressing the “particularly destructive,” Rustin’s group demurred, preferring to advance programs that addressed “all the poor, black and white.”

The urge to use the moral force of the black struggle to address broader inequalities originates in both compassion and pragmatism. But it makes for ambiguous policy. Affirmative action’s precise aims, for instance, have always proved elusive. Is it meant to make amends for the crimes heaped upon black people? Not according to the Supreme Court. In its 1978 ruling in Regents of the University of California v. Bakke, the Court rejected “societal discrimination” as “an amorphous concept of injury that may be ageless in its reach into the past.” Is affirmative action meant to increase “diversity”? If so, it only tangentially relates to the specific problems of black people—the problem of what America has taken from them over several centuries.

This confusion about affirmative action’s aims, along with our inability to face up to the particular history of white-imposed black disadvantage, dates back to the policy’s origins. “There is no fixed and firm definition of affirmative action,” an appointee in Johnson’s Department of Labor declared. “Affirmative action is anything that you have to do to get results. But this does not necessarily include preferential treatment.”

Yet America was built on the preferential treatment of white people—395 years of it. Vaguely endorsing a cuddly, feel-good diversity does very little to redress this.

Today, progressives are loath to invoke white supremacy as an explanation for anything. On a practical level, the hesitation comes from the dim view the Supreme Court has taken of the reforms of the 1960s. The Voting Rights Act has been gutted. The Fair Housing Act might well be next. Affirmative action is on its last legs. In substituting a broad class struggle for an anti-racist struggle, progressives hope to assemble a coalition by changing the subject.

The politics of racial evasion are seductive. But the record is mixed. Aid to Families With Dependent Children was originally written largely to exclude blacks—yet by the 1990s it was perceived as a giveaway to blacks. The Affordable Care Act makes no mention of race, but this did not keep Rush Limbaugh from denouncing it as reparations. Moreover, the act’s expansion of Medicaid was effectively made optional, meaning that many poor blacks in the former Confederate states do not benefit from it. The Affordable Care Act, like Social Security, will eventually expand its reach to those left out; in the meantime, black people will be injured.

“All that it would take to sink a new WPA program would be some skillfully packaged footage of black men leaning on shovels smoking cigarettes,” the sociologist Douglas S. Massey writes. “Papering over the issue of race makes for bad social theory, bad research, and bad public policy.” To ignore the fact that one of the oldest republics in the world was erected on a foundation of white supremacy, to pretend that the problems of a dual society are the same as the problems of unregulated capitalism, is to cover the sin of national plunder with the sin of national lying. The lie ignores the fact that reducing American poverty and ending white supremacy are not the same. The lie ignores the fact that closing the “achievement gap” will do nothing to close the “injury gap,” in which black college graduates still suffer higher unemployment rates than white college graduates, and black job applicants without criminal records enjoy roughly the same chance of getting hired as white applicants with criminal records.

Chicago, like the country at large, embraced policies that placed black America’s most energetic, ambitious, and thrifty countrymen beyond the pale of society and marked them as rightful targets for legal theft. The effects reverberate beyond the families who were robbed to the community that beholds the spectacle. Don’t just picture Clyde Ross working three jobs so he could hold on to his home. Think of his North Lawndale neighbors—their children, their nephews and nieces—and consider how watching this affects them. Imagine yourself as a young black child watching your elders play by all the rules only to have their possessions tossed out in the street and to have their most sacred possession—their home—taken from them.

The message the young black boy receives from his country, Billy Brooks says, is “ ‘You ain’t shit. You not no good. The only thing you are worth is working for us. You will never own anything. You not going to get an education. We are sending your ass to the penitentiary.’ They’re telling you no matter how hard you struggle, no matter what you put down, you ain’t shit. ‘We’re going to take what you got. You will never own anything, nigger.’ ”

IX. Toward A New Country

When Clyde Ross was a child, his older brother Winter had a seizure. He was picked up by the authorities and delivered to Parchman Farm, a 20,000-acre state prison in the Mississippi Delta region.

“He was a gentle person,” Clyde Ross says of his brother. “You know, he was good to everybody. And he started having spells, and he couldn’t control himself. And they had him picked up, because they thought he was dangerous.”

Built at the turn of the century, Parchman was supposed to be a progressive and reformist response to the problem of “Negro crime.” In fact it was the gulag of Mississippi, an object of terror to African Americans in the Delta. In the early years of the 20th century, Mississippi Governor James K. Vardaman used to amuse himself by releasing black convicts into the surrounding wilderness and hunting them down with bloodhounds. “Throughout the American South,” writes David M. Oshinsky in his book Worse Than Slavery, “Parchman Farm is synonymous with punishment and brutality, as well it should be … Parchman is the quintessential penal farm, the closest thing to slavery that survived the Civil War.”

When the Ross family went to retrieve Winter, the authorities told them that Winter had died. When the Ross family asked for his body, the authorities at Parchman said they had buried him. The family never saw Winter’s body.

And this was just one of their losses.

Scholars have long discussed methods by which America might make reparations to those on whose labor and exclusion the country was built. In the 1970s, the Yale Law professor Boris Bittker argued in The Case for Black Reparations that a rough price tag for reparations could be determined by multiplying the number of African Americans in the population by the difference in white and black per capita income. That number—$34 billion in 1973, when Bittker wrote his book—could be added to a reparations program each year for a decade or two. Today Charles Ogletree, the Harvard Law School professor, argues for something broader: a program of job training and public works that takes racial justice as its mission but includes the poor of all races.

Perhaps no statistic better illustrates the enduring legacy of our country’s shameful history of treating black people as sub-citizens, sub-Americans, and sub-humans than the wealth gap. Reparations would seek to close this chasm. But as surely as the creation of the wealth gap required the cooperation of every aspect of the society, bridging it will require the same.

When we think of white supremacy, we picture Colored Only signs, but we should picture pirate flags.

Perhaps after a serious discussion and debate—the kind that HR 40 proposes—we may find that the country can never fully repay African Americans. But we stand to discover much about ourselves in such a discussion—and that is perhaps what scares us. The idea of reparations is frightening not simply because we might lack the ability to pay. The idea of reparations threatens something much deeper—America’s heritage, history, and standing in the world.

The early American economy was built on slave labor. The Capitol and the White House were built by slaves. President James K. Polk traded slaves from the Oval Office. The laments about “black pathology,” the criticism of black family structures by pundits and intellectuals, ring hollow in a country whose existence was predicated on the torture of black fathers, on the rape of black mothers, on the sale of black children. An honest assessment of America’s relationship to the black family reveals the country to be not its nurturer but its destroyer.

And this destruction did not end with slavery. Discriminatory laws joined the equal burden of citizenship to unequal distribution of its bounty. These laws reached their apex in the mid-20th century, when the federal government—through housing policies—engineered the wealth gap, which remains with us to this day. When we think of white supremacy, we picture Colored Only signs, but we should picture pirate flags.

On some level, we have always grasped this.

“Negro poverty is not white poverty,” President Johnson said in his historic civil-rights speech.

Many of its causes and many of its cures are the same. But there are differences—deep, corrosive, obstinate differences—radiating painful roots into the community and into the family, and the nature of the individual. These differences are not racial differences. They are solely and simply the consequence of ancient brutality, past injustice, and present prejudice.

We invoke the words of Jefferson and Lincoln because they say something about our legacy and our traditions. We do this because we recognize our links to the past—at least when they flatter us. But black history does not flatter American democracy; it chastens it. The popular mocking of reparations as a harebrained scheme authored by wild-eyed lefties and intellectually unserious black nationalists is fear masquerading as laughter. Black nationalists have always perceived something unmentionable about America that integrationists dare not acknowledge—that white supremacy is not merely the work of hotheaded demagogues, or a matter of false consciousness, but a force so fundamental to America that it is difficult to imagine the country without it.

And so we must imagine a new country. Reparations—by which I mean the full acceptance of our collective biography and its consequences—is the price we must pay to see ourselves squarely. The recovering alcoholic may well have to live with his illness for the rest of his life. But at least he is not living a drunken lie. Reparations beckons us to reject the intoxication of hubris and see America as it is—the work of fallible humans.

Won’t reparations divide us? Not any more than we are already divided. The wealth gap merely puts a number on something we feel but cannot say—that American prosperity was ill-gotten and selective in its distribution. What is needed is an airing of family secrets, a settling with old ghosts. What is needed is a healing of the American psyche and the banishment of white guilt.

What I’m talking about is more than recompense for past injustices—more than a handout, a payoff, hush money, or a reluctant bribe. What I’m talking about is a national reckoning that would lead to spiritual renewal. Reparations would mean the end of scarfing hot dogs on the Fourth of July while denying the facts of our heritage. Reparations would mean the end of yelling “patriotism” while waving a Confederate flag. Reparations would mean a revolution of the American consciousness, a reconciling of our self-image as the great democratizer with the facts of our history.

X. “There Will Be No ‘Reparations’ From Germany”

We are not the first to be summoned to such a challenge.

In 1952, when West Germany began the process of making amends for the Holocaust, it did so under conditions that should be instructive to us. Resistance was violent. Very few Germans believed that Jews were entitled to anything. Only 5 percent of West Germans surveyed reported feeling guilty about the Holocaust, and only 29 percent believed that Jews were owed restitution from the German people.

“The rest,” the historian Tony Judt wrote in his 2005 book, Postwar, “were divided between those (some two-fifths of respondents) who thought that only people ‘who really committed something’ were responsible and should pay, and those (21 percent) who thought ‘that the Jews themselves were partly responsible for what happened to them during the Third Reich.’ ”

Germany’s unwillingness to squarely face its history went beyond polls. Movies that suggested a societal responsibility for the Holocaust beyond Hitler were banned. “The German soldier fought bravely and honorably for his homeland,” claimed President Eisenhower, endorsing the Teutonic national myth. Judt wrote, “Throughout the fifties West German officialdom encouraged a comfortable view of the German past in which the Wehrmacht was heroic, while Nazis were in a minority and properly punished.”

Konrad Adenauer, the postwar German chancellor, was in favor of reparations, but his own party was divided, and he was able to get an agreement passed only with the votes of the Social Democratic opposition.

“If I could take German property without sitting down with them for even a minute but go in with jeeps and machine guns,” said David Ben-Gurion, “I would do that.”

Among the Jews of Israel, reparations provoked violent and venomous reactions ranging from denunciation to assassination plots. On January 7, 1952, as the Knesset—the Israeli parliament—convened to discuss the prospect of a reparations agreement with West Germany, Menachem Begin, the future prime minister of Israel, stood in front of a large crowd, inveighing against the country that had plundered the lives, labor, and property of his people. Begin claimed that all Germans were Nazis and guilty of murder. His condemnations then spread to his own young state. He urged the crowd to stop paying taxes and claimed that the nascent Israeli nation characterized the fight over whether or not to accept reparations as a “war to the death.” When alerted that the police watching the gathering were carrying tear gas, allegedly of German manufacture, Begin yelled, “The same gases that asphyxiated our parents!”

Begin then led the crowd in an oath to never forget the victims of the Shoah, lest “my right hand lose its cunning” and “my tongue cleave to the roof of my mouth.” He took the crowd through the streets toward the Knesset. From the rooftops, police repelled the crowd with tear gas and smoke bombs. But the wind shifted, and the gas blew back toward the Knesset, billowing through windows shattered by rocks. In the chaos, Begin and Prime Minister David Ben-Gurion exchanged insults. Two hundred civilians and 140 police officers were wounded. Nearly 400 people were arrested. Knesset business was halted.

Begin then addressed the chamber with a fiery speech condemning the actions the legislature was about to take. “Today you arrested hundreds,” he said. “Tomorrow you may arrest thousands. No matter, they will go, they will sit in prison. We will sit there with them. If necessary, we will be killed with them. But there will be no ‘reparations’ from Germany.”

Survivors of the Holocaust feared laundering the reputation of Germany with money, and mortgaging the memory of their dead. Beyond that, there was a taste for revenge. “My soul would be at rest if I knew there would be 6 million German dead to match the 6 million Jews,” said Meir Dworzecki, who’d survived the concentration camps of Estonia.

Ben-Gurion countered this sentiment, not by repudiating vengeance but with cold calculation: “If I could take German property without sitting down with them for even a minute but go in with jeeps and machine guns to the warehouses and take it, I would do that—if, for instance, we had the ability to send a hundred divisions and tell them, ‘Take it.’ But we can’t do that.”

The reparations conversation set off a wave of bomb attempts by Israeli militants. One was aimed at the foreign ministry in Tel Aviv. Another was aimed at Chancellor Adenauer himself. And one was aimed at the port of Haifa, where the goods bought with reparations money were arriving. West Germany ultimately agreed to pay Israel 3.45 billion deutsche marks, or more than $7 billion in today’s dollars. Individual reparations claims followed—for psychological trauma, for offense to Jewish honor, for halting law careers, for life insurance, for time spent in concentration camps. Seventeen percent of funds went toward purchasing ships. “By the end of 1961, these reparations vessels constituted two-thirds of the Israeli merchant fleet,” writes the Israeli historian Tom Segev in his book The Seventh Million. “From 1953 to 1963, the reparations money funded about a third of the total investment in Israel’s electrical system, which tripled its capacity, and nearly half the total investment in the railways.”

Israel’s GNP tripled during the 12 years of the agreement. The Bank of Israel attributed 15 percent of this growth, along with 45,000 jobs, to investments made with reparations money. But Segev argues that the impact went far beyond that. Reparations “had indisputable psychological and political importance,” he writes.

Reparations could not make up for the murder perpetrated by the Nazis. But they did launch Germany’s reckoning with itself, and perhaps provided a road map for how a great civilization might make itself worthy of the name.

Assessing the reparations agreement, David Ben-Gurion said:

For the first time in the history of relations between people, a precedent has been created by which a great State, as a result of moral pressure alone, takes it upon itself to pay compensation to the victims of the government that preceded it. For the first time in the history of a people that has been persecuted, oppressed, plundered and despoiled for hundreds of years in the countries of Europe, a persecutor and despoiler has been obliged to return part of his spoils and has even undertaken to make collective reparation as partial compensation for material losses.

Something more than moral pressure calls America to reparations. We cannot escape our history. All of our solutions to the great problems of health care, education, housing, and economic inequality are troubled by what must go unspoken. “The reason black people are so far behind now is not because of now,” Clyde Ross told me. “It’s because of then.” In the early 2000s, Charles Ogletree went to Tulsa, Oklahoma, to meet with the survivors of the 1921 race riot that had devastated “Black Wall Street.” The past was not the past to them. “It was amazing seeing these black women and men who were crippled, blind, in wheelchairs,” Ogletree told me. “I had no idea who they were and why they wanted to see me. They said, ‘We want you to represent us in this lawsuit.’ ”

A commission authorized by the Oklahoma legislature produced a report affirming that the riot, the knowledge of which had been suppressed for years, had happened. But the lawsuit ultimately failed, in 2004. Similar suits pushed against corporations such as Aetna (which insured slaves) and Lehman Brothers (whose co-founding partner owned them) also have thus far failed. These results are dispiriting, but the crime with which reparations activists charge the country implicates more than just a few towns or corporations. The crime indicts the American people themselves, at every level, and in nearly every configuration. A crime that implicates the entire American people deserves its hearing in the legislative body that represents them.

John Conyers’s HR 40 is the vehicle for that hearing. No one can know what would come out of such a debate. Perhaps no number can fully capture the multi-century plunder of black people in America. Perhaps the number is so large that it can’t be imagined, let alone calculated and dispensed. But I believe that wrestling publicly with these questions matters as much as—if not more than—the specific answers that might be produced. An America that asks what it owes its most vulnerable citizens is improved and humane. An America that looks away is ignoring not just the sins of the past but the sins of the present and the certain sins of the future. More important than any single check cut to any African American, the payment of reparations would represent America’s maturation out of the childhood myth of its innocence into a wisdom worthy of its founders.

In 2010, Jacob S. Rugh, then a doctoral candidate at Princeton, and the sociologist Douglas S. Massey published a study of the recent foreclosure crisis. Among its drivers, they found an old foe: segregation. Black home buyers—even after controlling for factors like creditworthiness—were still more likely than white home buyers to be steered toward subprime loans. Decades of racist housing policies by the American government, along with decades of racist housing practices by American businesses, had conspired to concentrate African Americans in the same neighborhoods. As in North Lawndale half a century earlier, these neighborhoods were filled with people who had been cut off from mainstream financial institutions. When subprime lenders went looking for prey, they found black people waiting like ducks in a pen.

“Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches.”

“High levels of segregation create a natural market for subprime lending,” Rugh and Massey write, “and cause riskier mortgages, and thus foreclosures, to accumulate disproportionately in racially segregated cities’ minority neighborhoods.”

Plunder in the past made plunder in the present efficient. The banks of America understood this. In 2005, Wells Fargo promoted a series of Wealth Building Strategies seminars. Dubbing itself “the nation’s leading originator of home loans to ethnic minority customers,” the bank enrolled black public figures in an ostensible effort to educate blacks on building “generational wealth.” But the “wealth building” seminars were a front for wealth theft. In 2010, the Justice Department filed a discrimination suit against Wells Fargo alleging that the bank had shunted blacks into predatory loans regardless of their creditworthiness. This was not magic or coincidence or misfortune. It was racism reifying itself. According to The New York Times, affidavits found loan officers referring to their black customers as “mud people” and to their subprime products as “ghetto loans.”

“We just went right after them,” Beth Jacobson, a former Wells Fargo loan officer, told The Times. “Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”

In 2011, Bank of America agreed to pay $355 million to settle charges of discrimination against its Countrywide unit. The following year, Wells Fargo settled its discrimination suit for more than $175 million. But the damage had been done. In 2009, half the properties in Baltimore whose owners had been granted loans by Wells Fargo between 2005 and 2008 were vacant; 71 percent of these properties were in predominantly black neighborhoods.