Black/Hispanic vs. Wealth Gap Takes Huge Jump - 300%

The Pew Research Center has publish a report that show the asset ratio between Whites as compared to Blacks and Hispanics has has jumped from 7:1 in 1995 to 20:1 in 2010. An increase of nearly 300%. The primary reason is the increase in Black unemployment and the number of sub-prime foreclosures.

The summary is here and the full study is here.

Unfortunately, the heart of the problem is that the assets were reported at paper value not a the risk adjusted price. So Black and Hispanic asset values (houses) were overstated. We the housing bubble popped you got a more realistic view which coupled with the recession explains the wide gap. Things have not really changed.