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Behold the evolution of the “payday loan”.…
Global economic collapse of 2008 was due to Big Government-Big Business corruption fascism, which is currently killing our country.
Big Government mandated Big Banks make millions of home loans everyone knew made zero economic sense — in the name of “lending equity.” To bribe the Big Banks into cooperating, Big Government allowed the Big Banks to make obscene fees on each and every idiotic loan they made — many times the fees they made on mortgages that actually made economic sense.
We kept going round until the merrygo-round became violently out of control and spun around on its axis. Then, it crashed into We the People. The People suffered years of economic disaster.
What is the Big Bank? Big Government provided trillions of dollars to bail them out after many years of earning hundreds of billions. Our money. Big Government has to take what we give it.
OMG: The first thing Big Banks did was? Our bailout money? They will receive billions in bonus money.
Big Government became the Big Bank Protection business. The incredibly awful Dodd-Frank law made “too-big-to-fail” banks the only banks in town.
Small businesses find big government too costly and burdensome. Only Big Business has the resources to pay for compliance officers and lawyers. A greater number of small businesses will go out of business if Big Government is larger than they are.
Big Business loves Big Government to murder its rivals. Big Business lobbyists tirelessly for more Big Government.
Dodd-Frank has a high cost and is extremely difficult to implement. This has led to the demise of thousands upon thousands of small banks. Big Banks now have a dominant position in the market.
But hope — and economic chutes of greenery — can continue to spring forth. It has been for the poor in post-Dodd-Frank’s post-Apocalyptic banking environment.
The big banks prefer billionaires to borrow money. Only small banks lent money to people in need. We the Poor People have been left in an awful mess by their death.
Say you’re an Average Joe, with below-average income and credit, and your car dies. You don’t have the cash (or Big Bank credit card, because they won’t give you one) to cover the repairs. However, you must continue working.
For these types of scenarios, small banks were able to provide credit limits for average Joes. Oops.
Enter the “payday loan.” Which, as the name indicates, is a small lender lending you money until payday. Small lender because the Big Banks won’t lend to you with a ten-foot pole.
Big Banks don’t like these small-time “payday” lenders filling the gap created by Big Government’s murder of small banks. Big Banks view that gap as theirs — to (not) fill as they wish.
On Big Banks’ orders, Big Government has swung into anti-“payday loan” action. To (re-)establish Big Bank dominance in the monetary industry. DC is extruding bipartisan legislation that will drive the “payday” lending business out of business.
DC wants to impose price caps on “payday” loans. We know that price caps kill the product when they are set at a certain level. See: 1970s gas lines.
DC is, like always, indefatigable to facts.
DC Is Ensuring Only Billionaires Can Get a Loan – In the Name of ‘Helping the Little Guy’:
“Sometimes DCs denizens are nakedly obvious about helping their rich, crony benefactors.
“Silence from Congressional Liberals as Democrats Move Toward SALT Tax Cut for Wealthy’
“But far more often, Big Businesses’ elected officials obfuscate their cronyism. Dressing up ever-more Big Business assistance in “Help the Little Guy” verbiage.
“Ohio Democrat Senator Sherrod Brown is excellent at it.
“‘Protecting Ohioans from Predatory Payday Lenders:
“‘Fifteen years ago, we passed the Military Lending Act to cap interest rates on any loans to active-duty service members and their families.…
“‘Our bill, the Veterans and Consumers Fair Credit Act, would expand those same protections to everyone….’”
Enter Big Media. They are once again executing the messaging part of their Big Government-Big Business–Big Media crony fascist cabal.
Here’s a little joint facetiously known as NBC “News”….
Tailspin can be sent by payday lenders to borrowers This is how one woman broke free:
“Working as a teacher in Cleveland, Mississippi, was extremely rewarding, Jennifer Williams said, but she sometimes had trouble making her income stretch from paycheck to paycheck. So one day she borrowed $200, promising to settle up with the lender when she got paid a short time later.”
This is it. This is EXACTLY how a “payday loan” is supposed to work. You borrow a little money — until payday:
“Typically used by workers who run out of money before their next paycheck, the loans are easy to receive, not requiring a credit check, and are offered from storefront locations and online.”
As we said, these loans are for people who can’t pass a credit check — so Big Banks won’t lend them a dime. And since Big Government murdered the small banks that would lend to poor people, these “payday loans” are often the only thing between poor people and utter economic oblivion over relatively tiny dollar amounts:
“Payday loans typically extend for two weeks or less and can be made for as little as $100 and up to $1,000….
“Payday lenders and check advance companies say they provide a needed service – giving credit to borrowers who have no other access to funds, sometimes referred to as the ‘unbanked.’
“The Community Financial Services Association of America, an industry lobbying group, says 12 million American households use small-dollar loans each year.”
That’s a LOT of poor people being helped.
And look: Our old friend, the Communist-yet-accidentally-helping-Big-Banks joint the National Consumer Law Center (NCLC), LOVES destroying small loans to poor people. The spokeswoman for the bank makes an economic statement that is just as absurd as you would think.
“Lauren Saunders, associate director of the National Consumer Law Center, a nonprofit organization that advocates on behalf of consumers, said research shows borrowers find better alternatives when states rein in payday lenders.”
If there were better alternatives to “payday loans,” you wouldn’t need the government to outlaw “payday loans.” The alternatives would simply supplant them.
“Payday loans” are an often life-saving service for millions of Americans. Which NBC “News” wants to destroy — because some people are less than entirely self-aware:
“When her first loan of $200 came due, she said she went to the lender to repay it – but wound up increasing the loan to $400….”
Ummm…: “I went into the grocery store to buy fruits and vegetables. But I wound up with ice cream and doughnuts.”
Personal Responsibility HAS to be included at SOME POINT, doesn’t it?
You don’t dramatically damage a valuable product to tens of millions of Americans predicated upon the really unwise actions of a single individual.
Big Media NBC “News” — and Big Banks and Big Government — all want to do exactly that: de facto ban “payday loans.”
Which is how you with moral certitude know it’s an exceedingly awful idea.
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