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The Economic Policy Institute just put out a major report, Segregation and the Subprime Lending Crisis, linking whites’ racial-segregation practices and the subprime mortgate crisis. The lead author is one of our major housing researchers and activists, squiresGreg Squires. (The other authors are Derek S . Hyra and Robert N . Renner.)
The well-documented report begins this way:

While there has been widespread recognition that racial minorities are among the hardest hit by the subprime mortgage crisis, racial residential segregation has not been considered a factor behind the crisis in minority communities. Blame is being directed at ill-informed consumers, lax underwriting by loan originators, the failure of regulatory agencies, predatory lending practices, greedy investors, misguided appraisers and credit rating agencies, job loss in economically distressed regions, and a range of other institutional and individual factors.

The report then accents how the debate on the subprime crisis mostly ignores the centuries-old reality of residential segregation:

. . . apart from the mere percent of African Americans or Hispanics living in a metropolitan area, the more racially segregated these groups are in a metropolitan area, the more subprime loans that area is likely to have. Racial segregation is a signifcant predictor of the share of subprime loans, even after controlling for the percent of minorities, credit score, median home value, poverty, and education. Black segregation has a stronger effect than Hispanic segregation. These findings reveal that segregation explains, in part, the high rates of subprime lending in America’s most segregated metropolitan areas. Major findings include: A 10% increase in black segregation, on average, is associated with a 1.4% increase in high-cost lending. In a highly segregated black area, the percent increase in high-cost loans is 7%; in a highly segregated Hispanic metropolitan area the increase is 4.2%. Metropolitan areas with higher education levels have a lower proportion of high-cost loans.

Numerous research studies have shown that over the centuries, including recent decades, housing segregation is heavily shaped by the discriminatory practices of white homeowners, real estate operatives, and banking officials. We also have much evidence that the fair housing laws in this country have mostly been unenforced, in the past and in the present. Millions of cases of housing discrimination targeting Americans of color are perpetrated each year, mostly by whites.

In this substantial report there is much important information on the linkages between housing segregation and the subprime crisis, with solid statistical analyses showing these linkages. In my view the report’s main weakness comes in its analytical framework, with no mention of racism or systemic racism in the report. Once again too, the role of white real estate actors in all this is only implied, not explicitly stated. Like most such reports white actors are not named as white, including when these actors are in the subject position in key sentences about housing segregation. I have thought of doing a research paper or book examining our now extensive research writings on racial discrimination titled something like, “why are whites are only implied.”



Immigrant Rights March
Creative Commons License photo credit: Kevin Coles (NYC Immigrants’ rights march)

Do white discrimination and the white racist frame still target Latinos, both immigrants and the US-born? You bet they do, according to a large-scale research project by the Southern Poverty Law Center, Under Siege: Life for Low-Income Latinos in the South. Researchers recently interviewed 500 low-income Latinos, especially immigrants, in Nashville, Charlotte, New Orleans, rural Georgia and several towns in Alabama.

The poignant report begins with personal stories:

In Tennessee, a young mother is arrested and jailed when she asks to be paid for her work in a cheese factory. In Alabama, a migrant bean picker sees his life savings confiscated by police during a traffic stop. In Georgia, a rapist goes unpunished because his 13-year old victim is undocumented.

The southwest has traditionally been the home for most Latinos, but the Latino population in southern states is now the fastest growing, with many seeking low-wage jobs in manufacturing and construction. Since the 1990s the states of Arkansas, Alabama, Georgia, North Carolina, South Carolina and Tennessee have been privileged to add 1.6 million Latinos, mostly workers and their families. As with other Americans of color, these hardworking Latinos often face intense and

widespread hostility, discrimination and exploitation. They are routinely cheated out of their earnings and denied basic health and safety protections. They are regularly subjected to racial profiling and harassment by law enforcement. They are victimized by criminals who know they are reluctant to report attacks. And they are frequently forced to prove themselves innocent of immigration violations, regardless of their legal status. This treatment – which many Latinos liken to the oppressive climate of racial subordination that blacks endured during the Jim Crow era – is encouraged by politicians and media figures who scapegoat immigrants and spread false propaganda.

So much for a post-racial America. We might note that the principal discriminators are not named as white in any sentence in the 64-page report. Indeed, the world “whites” never appears in the report, and the only place “white” appears is in a few references to “white supremacist” groups. Even in critical research reports like this there seems to be an etiquette of not offending white dsciminators explicitly, but leaving the elite and ordinary white actors as “implicit” in the commentaries, unless they are part of supremacist groups. We see this in this next comment from the executive summary:

And as a result of relentless vilification in the media, Latinos are targeted for harassment by racist extremist groups, some of which are directly descended from the old guardians of white supremacy.

The report does recognize the problem is larger than these supremacist groups. Using general or vague language, local government “agencies” (again not named as white) are called out for discriminatory legislation being passed against immigrants, especially the undocumented:

A number of Southern communities, for example, have enacted ordinances designed to limit services to undocumented immigrants and make their lives as difficult as possible, with the ultimate goal of driving them away. In addition, many law enforcement agencies in the South, armed with so-called 287(g) agreements with the federal government, are enforcing immigration law in a way that has led to accusations of systematic racial profiling and has made Latino crime victims and witnesses more reluctant to cooperate with police. Such policies have the effect of creating a subclass of people who exist in a shadow economy, beyond the protection of the law.

Those who face discrimination have already endured many dangers and barriers in order to build up the South, to do the hard and dirty labor of

building skyscrapers in Charlotte, harvesting onions in Georgia, slaughtering poultry in Alabama and rebuilding New Orleans after Katrina. Many of these new arrivals left their homes in Mexico, Guatemala, Honduras and other Latin American countries to escape poverty, which some experts believe has been worsened by U.S. trade policies. Many crossed the border illegally, risking their lives and freedom for opportunity in the United States, while others were originally “imported” by employers under the guest worker system. Many others are legal residents or U.S. citizens, caught in the crossfire of America’s war on “illegals.”

Given this metaphorical “war” on them, it is not surprising that the interviewers found many Latinos living in great fear of the police and other government agents, as well as fear of cheating employers and criminals seeking to take advantage of them. In addition, as José Cobas and I have also found (see articles here, for example), it is not just the undocumented Latinos who face discrimination, mostly at the hands of whites. A great many Latinos face that discrimination:

Even legal residents and U.S. citizens of Latino descent say that racial profiling, bigotry and myriad other forms of discrimination and injustice are staples of their daily lives. “The assumption is that every Latino possibly is undocumented,” says one immigrant advocate in North Carolina. “So [discrimination] has spread over into the legal population.”

The racism is systemic, once again. And the relevant white discriminators need to be called out and named as principal actors in this sorry societal-oppression reality.

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The June 26, 2008 issue of the Integration Report (useful website here) has a disturbing, but predicable story on what is going on in Seattle public schools since our right-wing Supreme Court (in effect, an undemocratic legislature with no oversight) handed down its June 2007 Seattle/Louisville Supreme Court decision that makes it very difficult to use racial characteristics in student assignment plans aimed at reducing school segregation:

Today Seattle schools boast a diverse and multiracial student population. Black and Asian American students make up 22% of public school enrollment. The fastest growing group – Latino students – comprises 12% of the student population.12 However, nearly one-third of Seattle’s schools are considered racially imbalanced, with student populations that disproportionately reflect the district-wide racial/ethnic enrollment. Twenty schools are comprised of student populations that are over 90% nonwhite.

The reason is past and present racial discrimination:

These patterns reflect housing segregation fostered by restrictive covenants and discriminatory lending practices. The boundary lines of the Seattle school district yield a long, narrow geographic space dotted by several lakes and bordering a bay on the western side. Many of the predominately white schools are located in the northern and western portions of the district, while schools with majority nonwhite populations are clustered in eastern and downtown areas.

The price we pay for our still-apartheid, racialized society is great, and includes major racial isolation, as  social science data clearly indicate. I pointed to some of this research in a recent article (”Legacies of Brown: Success and Failure in Social Science Research on Racism,” in Commemorating Brown, edited by Glenn Adams et. al., American Psychological Association 2008):

Desegregated schools with large numbers of white children are more likely to have adequate media centers, computers, and other technology, as well as newer buildings, more classes for advanced students, and more teachers with substantial experience (Mickelson, 2003). When schools are desegregated, white officials typically spend more money on schools; when they resegregate, the opposite usually happens. In addition, children of color educated in desegregated settings generally have much better entrée into job and other important information networks (Orfield & Eaton, 1996). Black young people educated in desegregated public schools are more likely than similar students from segregated schools to attend desegregated colleges, work in desegregated employment settings, and acquire friends from other racial groups (Braddock & Eitle, n.d.).

The savvy Integration Report closes with this sad overview:

Seattle’s lack of policy response to resegregation trends in the district over the course of the past year is perhaps reflective of community ambivalence towards school integration. Busing ended in Seattle over 15 years ago, and school district leadership has failed to take a strong stand against resegregation patterns in the intervening time…. As we approach the one year anniversary of the Seattle/Louisville decision, the resegregation occurring in Seattle underscores the challenge of creating or maintaining integrated schools against the backdrop of residential segregation and judicially imposed limitations on attempts to combat school segregation.

Administrators and Supreme Court Justices now routinely, with little public questioning, operate out of the old white racial frame — and usually act to protect white group interests. Clearly, we need to do some major reform of our very undemocratic Supreme Court, the only one of its kind in the Western world. It now has several reactionary lawyers dictating both moral and political policies on racial remedy matters. In addition, a massive new civil rights movement in this country, one committed to real desegregation, is the only way out of this dilemma, in my opinion.

USA Today has a recent story on how the Bush administration is not vigorously pursuing housing discrimination cases even as discrimination complaints against real estate agents, landlords, and lending companies have grown in recent years. (photo: Licht)


In effect, real estate agents, landlords, lenders, and other (mostly white) housing actors can discriminate on racial, gender, and other illegal grounds in the United States until the cows come home, with very little chance of suffering any significant penalty for that discrimination. This has been true for many years in this country. That is, our civil rights laws in the housing area are not enforced or they are weakly enforced. The USA Today reporter summarizes the U.S. reality of no redress for housing discrimination:

Most renters and buyers who seek help from the U.S. Department of Housing and Urban Development are unlikely to get relief for their complaints, which can include alleged discrimination by landlords and sellers based on race, religion, sex or disability. The agency is throwing out a growing number of complaints, federal data show. The housing agency, responsible for investigating and prosecuting cases under the Federal Fair Housing Act, filed 31 discrimination charges in 2007 and 36 in 2006. Charges for those two years combined dropped 65% from the last two years of the Clinton administration — 111 charges were filed in 1999; 82 in 2000. Complaints during the same period rose from fewer than 7,100 in both 1999 and 2000 to more than 10,000 in both 2006 and 2007.

The shocking lawlessness of HUD can be seen in the continuing lethargy in charging housing discriminators this year, with only 12 housing providers being charged so far this year, with two other cases referred to the Justice department. The article quotes National Fair Housing Alliance head, the veteran housing advocate Shanna Smith, as noting that none of the major Bush agencies responsible for enforcing fair housing laws is doing its job: “It’s a drop in the bucket for the number of complaints that happen annually.”


HUD defends itself with the claim that they prefer to negotiate settlements, rather than to go to court:

The agency is settling more cases overall than during the previous administration, but the percentage of settled cases has declined. In 1999, HUD settled 778 cases, 42% of the total investigated. In 2007, it settled 948 cases — 36.5% of the total investigated.

No presidential administration since the housing laws were passed has made this national housing scandal a priority to address. There are millions of housing discrimination acts in this country each year, but only 10,000 people file complaints—and only a few thousand cases (at most) of the housing discrimination cases are resolved each year by federal agencies or HUD-certified and funded local and state housing agencies.


A major Urban Institute study done for the previous HUD administration in 2000 involved 4,600 paired tests in 23 metropolitan areas. These paired tests involved a person of color and a white person posing as home seekers as they visit real estate or rental agents and inquire about advertised housing. According to this report, rental agents in metropolitan markets were less likely to give people of color information about available housing or an opportunity to inspect available housing than they were for whites. Nationally, rental agents subjected African Americans and Asian Americans to discrimination about 22 percent of the time; Latinos, 26 percent of the time; and Native Americans, 29 percent of the time. In metropolitan markets, real estate agents were less likely to give home buyers of color an opportunity to inquire about or inspect available homes in predominantly white neighborhoods. Agents were less likely to give home buyers of color assistance with financing. African Americans homebuyers were discriminated against 17 percent of the time, and Latino home buyers were discriminated against 20 percent of the time, with Asian American and Pacific Islander home buyers experiencing discrimination about 20 percent of the time and Native American home buyers facing discrimination 17 percent of the time.


Moreover, if we look beyond this initial-stage (one-visit) discrimination and examine later-stage housing discrimination, such as for multiple housing searches and dealing with mortgage lenders, and if we extrapolate these data to all people of color searching for housing across the country over a year, we can reasonably estimate that several million cases of housing discrimination are carried out each year, a large proportion being racial discrimination cases. Roberta Achtenberg, assistant HUD secretary in the 1990s, estimated that the number could be as high as 10 million cases of housing discrimination annually.


It is interesting how often whites, especially white conservatives, claim we are no longer a racist country. I gather that looking at actual data on housing and much other institutionalized discrimination as it affects Americans of color is too much of burden for these analysts. (photo: josho99)




Note: In addition to the National Fair Housing Alliance, the National Fair Housing Advocate Online has good research discussions on fair housing issues, as well as good links to helpful legal and other resources.

The Empire State Coalition of Youth and Family Services has just released a new report most comprehensive study of youth homelessness in New York City in decades was released recently, providing what some say is the first realistic account of one of the city’s most vulnerable and misunderstood populations. This is a subject near to my heart since I do a lot of volunteer work (and, in true sociological fashion, a research project) with these folks. The reason I mention this report here is that it’s both fascinating from a sociological standpoint, and deeply disturbing from a racial justice perspective. From a sociological research perspective, it’s a huge methodological challenge to even count homeless youth because they aren’t easily identifiable (on purpose) and they don’t conform to the prevailing cultural image of what a homeless person looks like. Here’s a relevant excerpt pulled from City Limits:

“One of the things young people are very good at is fitting in. It’s much harder to identify youth homeless on the street,” said Hirsch. She recalled one young homeless person who used to get dressed up to sleep on the subway, so as not to let on that he was homeless.

And, from a racial justice perspective, it’s telling that homeless kids are from “marginalized populations,” again from City Limits:

“One of the report’s most striking findings, say youth service professionals, is the significant overrepresentation of certain marginalized populations among the ranks of homeless youth in the city—particularly those who identify themselves either as black, or as lesbian, gay, bisexual or transgender (LGBT), or those who have experience in the foster care and criminal justice systems. Almost half of respondents identified as black and close to a third identified as homosexual or bisexual. More than a quarter reported time spent in foster care, jail or prison. ….Additionally, half of the young people interviewed for the report did not have a high school diploma or GED.”

There are a number of things to note here. Perhaps the first and most obvious is the total, systemic failure here of multiple institutions (economic, religious, familial, political, educational, criminal justice). To continue stating the obvious, these institutional failures have the strongest impact on those in society who are the weakest and most vulnerable – young people. In addition, there are lots of ways overlapping systems of oppression are at work here, including racism and homophobia. Unfortunately, the way this report is written it makes it sound like “black” and “LGBT” are separate categories – as if these kids are either black or LGBT – and as I and Adia have written about here before – this kind of “either/or” thinking doesn’t help clarify but rather clouds our understanding of the way oppression works. For my experience working with homeless kids who identify as LGBT here in New York City, they are overwhelming Black and Latino. Often times what this means is that these are kids who are not only pushed to the margins of society because of race and poverty, but they’ve also quite literally been pushed out of their families’ homes and onto the streets because of gender/sexuality, that is, because they identify as lesbian, gay or bisexual or they are gender-non-conforming in one way or another.


In my view, religious institutions have a special burden to bear in perpetuating these overlapping and interlocking systems of oppression. It’s frequently the case that parents who have pushed their children out of the home and onto the streets refer to religious edicts or “God’s will” when doing so, citing highly-regarded religious leaders (even those formerly in the Hitler youth).  Government institutions add to this burden as they refuse to fund places that house homeless LGBT-identified youth, citing the “lack of gender segregated facilities” as a reason. In a facility that houses Black and Latino youth, pushed out of their homes, pushed out of the traditional shelter system (where they often encounter violence based on gender-identity and/or homophobia), and frequently pushed out of foster care for not conforming to gender norms, it’s hard to know what meaningful purpose is served by offering a ‘gender segregated’ facility. (And, indeed, it would be hard to know how to enforce such segregation for people who embody a more complex gender identity than a simply binary of “either/or,” male/female.) So, it’s organizations like MCCNY, part of the world’s largest queer-organization (yes, a religious organization) and one of the rare racially-integrated social institutions in the U.S., that take up the slack here by opening their basement to allow a few kids each night to get off the streets and sleep inside, have a hot shower, and a meal. (Pictured here: an illustration of the disparity between the number of homeless LGBT kids each night in NYC and the number of available beds, photo credit: Jessie Daniels).


The further irony is that the racism, class-based elitism and well-founded anti-religious sentiment among most affluent and white gays and lesbians, makes private fund-raising for homeless LGBT kids that’s housed in a church a decidedly uphill struggle. Thus, kids of color who identify as LGBT face multiple vulnerabilities that are rooted in interlocking systems of oppression. The combination of racism and homophobia pushes many of these kids into further vulnerability for health risks and violent attacks, as this article explains:

“A nationwide study of homophobia in schools found that the majority of GLBTQ youth of color had experienced victimization in school because of either race or sexual identity in the last year, while half reported being victimized because of both race and sexual identity. More than a third of GLBTQ youth of color had experienced physical violence because of their orientation.”

The fact is that racism, poverty and homophobia are damaging. And, these damaging consequences are all the more telling in the lives of homeless youth in New York City.

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 The UN Committee on the Elimination of Racial Discrimination is meeting in Geneva, Switzerland, and just issued some of its Concluding Observations.   Not long ago, I wrote about Canada skipping the UN conference on racism due to antisemitism.


Yet, despite this  criticism the UN Committee is issuing some charges that should be addressed.   In one of their more scathing conclusions, they charge the U.S. to do more to remedy the effects of racial discrimination in housing, particularly following Hurricane Katrina.  The Committee criticized the discriminatory violations of housing rights of African Americans following Hurricane Katrina in New Orleans. The UN report comes on the heels of a call from two UN experts on housing and minority rights two weeks ago for an immediate halt to the demolitions of public housing in New Orleans.  Many community members argue that these demolitions, along with other reconstruction policies, are preventing African Americans from returning to the city. The UN Committee calls for adequate, affordable housing in Katrina-affected areas, and also for the remedying of housing conditions in racially segregated areas across the country.


Maria Foscarinis, executive director of the National Law Center on Homelessness & Poverty (NLCHP), which coordinated a report signed by more than 60 organizations to the Committee detailing the systemic discrimination against racial minorities in equal access to adequate housing, welcomed the Observations:

“Racial discrimination, both overt and subtle, is alive and well in America today. Viewed against international standards — which consider impact, not just intent — the extent of continuing racial discrimination is staggering. The sub-prime mortgage crisis, which also disproportionately impacts minority families, is exacerbating the problem.”

You can download the UN Committee’s Concluding Observations here.

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Sep
24

Whistling Dixie in the NYTimes

Posted by: Jessie | Comments (2)

Paul Krugman writes in today’s New York Times that despite his newspapers (and other media outlet’s) “tone of amazement” at the protests in Jena last week:

“But the reality is that things haven’t changed nearly as much as people think. Racial tension, especially in the South, has never gone away, and has never stopped being important. And race remains one of the defining factors in modern American politics.”

While Krugman is correct on this point, he errs by failing to recognize the ways in which the racial dynamics he’s attributing exclusively to the South are in fact, quintessentially American. To support this view, he quotes political scientist Thomas F. Schaller who, in his book “Whistling Past Dixie,” makes this assessment:

“Despite the best efforts of Republican spinmeisters to depict American conservatism as a nonracial phenomenon, the partisan impact of racial attitudes in the South is stronger today than in the past.”

Yet, it’s systematic racism – like that in housing – that reveals part of how deeply embedded racism is in this society as a whole. The first suburbs in the nation were built outside New York City, and those suburbs, such as the original Levittown, were built exclusively for whites at the same time that people were rising up against racist segregation in the south. Making racism a regional-disorder is provides an easy out for white liberals who would rather ignore the racism in their own backyard.

Categories : Jena, housing
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The Washington Post yesterday reported on a new study released by the Federal Reserve which details the realities of racial discrimination in mortgage lending in the U.S. According to the Fed’s report:

… minorities received loans with higher interest rates or other increased charges in greater percentages than white applicants did. Controlling for various factors, the report found 30.3 percent of the loans for home purchases by African Americans were higher-cost loans, compared with 17.7 percent of loans for whites. The gap of 12.6 percentage points exceeded the gap of 10 percentage points found in the 2005 survey.

Black borrowers received high-cost loans 52.8 percent of the time when they refinanced home loans last year, vs. 49.3 percent in 2005, the Fed report said. Hispanic borrowers received high-cost refinancings 37.7 percent of the time, up from 33.8 percent in 2005. The rate for white borrowers was 25.7 percent last year, compared with 21 percent in 2005.

The Federal Reserve report coincides with increased scrutiny by Congress of lending practices that contributed to the collapse of the subprime-mortgage market which is having a disproportionate impact on African American and Latino homeowners (but that goes largely unreported in this story). And, while the Washington Post story goes on to note that:

African Americans’ homeownership fell nearly two percentage points in the first six months of this year, to 46.3 percent, compared with a half-percentage point drop for whites, to 75.4 percent.

There is little to no attention to the racial discrimination in mortgage lending on the part of Congress. Perhaps it’s time for Congress to take pay attention? Given that the Democratically-controlled Congress can’t seem to get it together to pass legislation that would stop a widely unpopular war, I won’t be holding my breath to see if they take up the issue of racial discrimination in mortgage lending. Of course, the other point to make about the Federal Reserve point is that it calls into question the kind of story I commented on yesterday in USA Today, that this is a “more tolerant” nation. If survey data reflects less overt racism, yet institutionalized racism is as deeply entrenched as this data suggests, who benefits from this? Arguably, it’s white people who reap the benefits here, both in terms of getting better mortgage rates and simultaneously congratulating ourselves on being more tolerant.

Categories : discrimination, housing
Comments (0)
Aug
24

Racism in NYC Housing

Posted by: Jessie | Comments (1)

Sometimes people have the impression that New York City, because it is a global city and there is such amazing diversity here, is somehow more ‘tolerant’ or less racist than say, Texas, where I grew up. In fact, it used to really annoy me when, back in the day after I finished my dissertation about white supremacy at UT-Austin, people from New York and other points north of the Mason-Dixon line, would say things like, “oh, Texas…that must be a really good place to study white supremacy.” As if racism, white supremacy, and overt discrimination, for example in housing, don’t exist outside the South.

A couple of stories from the New York Daily News, one of tabloids here in the city, make this point for me. First up, all the ‘race-blind’ talk about the financial crisis in subprime mortgages disguises the fact that this is an issue steeped in racism. The news story from yesterday about eight Brooklyn homeowners, all working-class Blacks, who won a huge legal victory yesterday when a federal judge green-lighted their suits against a real estate company accused of targeting African Americans and other minority-group members with predatory lending practices.

The homeowners assert that they were victims of fast-talking salesmen for United Homes LLC, who pressed to close deals on dilapidated homes appraised at grossly inflated values without concern for the buyers’ ability to pay.

Sylvia Gibbons, who contends United Mortgage pressured her and her husband to take out two mortgages to buy a house in Bushwick, is quoted in the story saying, “It’s a nightmare we’re still trying to cope with.”

The second story from the Daily News, this one from this morning, highlights the kind of overt racism in housing that most people associate with the South. And, indeed, an unidentified “police source” in the story is quoted as saying: “It’s something out of the Deep South, or the backwoods, circa 1950,” a police source said.

But this is happening right here in New York City right now. According to the story in the News, Kris Gouden, who is of Guyanese descent, and his family are being harassed by white neighbors have launched a racist campaign to run him out of the neighborhood. Now, there is a constant police presence outside his home in Hamilton Beach and a neighbor has been busted on felony hate-crime charges.

Gouden says that his family was threatened while they were sitting on the deck in their own backyard. A white neighbor attacked Gouden and his family, “He comes back with a baseball bat,” Gounden said. “He said, ‘F–k you, n—-r. You don’t belong in here. I will burn this house. I’ll kill all of you.’”

This happened in a section of Queens known as Howard Beach, where several other racist attacks have occurred. But, rather than look at the way these attacks are connected to larger systems of racism, what I predict will happen here in New York is that people will dismiss it as an “isolated” incident precisely because it happened in Howard Beach.

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