6/26/2015
By Charles Payne, CEO & Principal Analyst

The Supreme Court decision was split by a (5-4) vote on the Fair Housing Act. It essentially says that lenders, builders, and insurers could be liable for discriminatory charges, even if their actions were not intentional and racially biased. It’s called the “Disparate impact” and it will be a big weapon in the quiver to bring about social justice.

This will leave intact prohibitions in banking and renting, but it could also embolden the push by the administration to create integrated neighborhoods in upper middle-class and wealthy neighborhoods. 

By controlling zoning and rental practices, the administration will move swiftly to force developers to include units for families that could never afford them otherwise.

Attorney General Loretta Lynch threw down the gauntlet yesterday:

"Bolstered by this important ruling, the Department of Justice will continue to vigorously enforce the Fair Housing Act with every tool at its disposal -- including challenges based on unfair and unacceptable discriminatory effects.”

It was a historic day that will reverberate through the nation for years to come. It will also put major pressure on the economy and individual prosperity while substituting government policy, which is an intervention for individual effort and opportunities.

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Charles Payne
Wall Street Strategies

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