A recap of this week’s equity news

“Low-Income Borrowers Blamed in Bailout Crisis,” - Washington Independent

Did poor and minority borrowers cause the housing crisis?

That seemed to be the consensus from the fight over the failed $700 billion bailout bill. As Congress and the Treasury Dept. debated how to fix the mortgage mess, the battle over what caused it took hold.

A prime suspect soon emerged: The government forced banks, lenders and Fannie Mae and Freddie Mac to make loans in poor neighborhoods to meet affordable housing goals and regulations. The loans went bad, setting off the market meltdown.

“Police official says city should limit low-income housing,” - Wisconsin State Journal

A top Madison Police Department official says the city should reduce or freeze building low-income housing because the tenants are overwhelming police services.

In addition, Jay Lengfeld, captain of the West District, wrote an e-mail to Madison Alderman Thuy Pham-Remmele, 20th District, on Monday in which he suggested the city should license landlords to “weed out the bad ones” and give landlords more leeway to reject applicants with a history of bad behavior.

“How Can We Reduce the Rising Number of American Families Living in Poverty?,” - Brookings Report

The Census Bureau recently released the official numbers on income and poverty last year (2007) in the United States. Let me underscore a few of the key facts that these data illustrate.

First, poverty did not fall to any appreciable extent during the economic expansion of the 2000s. This is quite unusual. Figure 1 shows the poverty rate and the unemployment rate. In past decades, these two indicators have moved together. When unemployment fell in the 1980s expansion, so did poverty. Unemployment and poverty both fell rapidly in the strong expansion of the 1990s. But when unemployment fell after 2003, poverty remained essentially flat.

A recap of the week’s equity news

“Obama Promotes Plan For Urban Development,” - The Wall Street Journal

Barack Obama’s campaign plans to relaunch his “urban agenda” Monday in what people close to the strategy say is an effort to assure urban leaders and voters of the Democratic nominee’s commitment to cities and minorities without alienating skeptical white voters.

The plan features an increase in the minimum hourly wage, a new White House office focused on metropolitan areas and $60 billion to establish a national bank to finance public-works projects.

“Nation’s Poverty Rate Holds Steady as More Get Health Insurance,” - Washington Post

The nation’s poverty rate held steady as median household income edged upward and the number of Americans without health insurance decreased by more than 1 million people last year, according to annual census data released today.

The Census Bureau report says that 37.3 million people — or 12.5 percent of the population — fell below the official federal poverty threshold in 2007, which is not statistically different than the 12.3 percent who were in poverty in 2006.

“Cities Debate Privatizing Public Infrastructure,” - New York Times

Cleaning up road kill and maintaining runways may not sound like cutting-edge investments. But banks and funds with big money seem to think so.

Reeling from more exotic investments that imploded during the credit crisis, Kohlberg Kravis Roberts, the Carlyle Group, Goldman Sachs, Morgan Stanley and Credit Suisse are among the investors who have amassed an estimated $250 billion war chest — much of it raised in the last two years — to finance a tidal wave of infrastructure projects in the United States and overseas.