The CFPB Is Not Armageddon, So Buy These Stocks [View article]
Adam, one of the amendments that was slapped on the bill last week includes a 36% APR rate cap, which would kill payday in Texas.
This was an incredibly stupid move. No matter how much one may oppose payday loans, killing them in Texas also kills some 13,000 jobs and over a billion dollars in labor income. What Texas politician would want to be remembered as a job killer?
I would be shocked if this bill makes it out of the House Committee and if it did, passed the House.
EZCorp, Inc.: Like All Value Investing, Hidden In Plain Sight [View article]
Manuel, An excellent analysis of what I believe is one of the most undervalued stocks in the market.
Two notes:
1) The volume of gold scrapping increases during period of price volatility, as opposed to periods of elevated pricing.
2) My understanding is that Mexico does not have a usury cap, and that is written in the Constitution, making it virtually impossible to impose rate caps. Is that correct?
Yield Kidnapped By The Fed? Why It Happened, And Today's Best Income Investments [View article]
I don't think so and here's why --
There's a reason BDCs are lending to these businesses -- because they can't get bank loans. They are filling a void. Perhaps some of the banks, eager to lend, will branch out a bit and lend to a few of these businesses.
But banks are so terrified to even make loans, I don't see it happening.
EZCorp: Very Cheap, But Read The Fine Print First [View article]
Igor, I'm telling you -- you are wrong. If you want to ignore one of the nation's experts in consumer short-term credit, that's your choice but it undermines your own credibility.
The 36% APR rate cap FOR MILITARY had already been in existence -- your linked article itself reminds us of this. The only thing the amendment to the Defense Authorization Act did was to extend this rate cap to open end lines of credit, which payday lenders never even offered to military because they lose money.
This was an act of CONGRESS, not the CFPB. I repeat, the CFPB does NOT have rate setting authority. It's in the legislation that created it. Look it up, please.
And in case you hadn't noticed, the Democrats controlled both houses of Congress from 2008-2010. No legislation was introduced then. Nor will it be introduced now. The reason for the military rate cap was because it was the military -- politicians look good when they do things that protect the military. The payday industry didn't bother fighting that legislation because military made up 3% of loans.
Further, Sen. Tim Johnson has seen the value of the payday loans for many years, and chairs the finance committee. No legislation limiting rates for the average consumer will make it past him.
Please do your research. I am always available to offer guidance and information as authors write their articles on payday.
EZCorp: Very Cheap, But Read The Fine Print First [View article]
Igor, you have your facts wrong.
First, you said "legislative threats". That means actions by Congress, writing laws that could threaten the industry. No such laws are coming.
What you mean are "regulatory threats". The CFPB specifically does NOT have the power to regulate or change rates. It is specifically indicated as such in the Dodd-Frank legislation that created the CFPB.
Thus far, the CFPB has not said they have any intention to attack the payday industry. Cordray has indicated he wants transparency to consumers, which the industry has always provided.
EZCorp, Inc.: Like All Value Investing, Hidden In Plain Sight [View article]
The CFPB Is Not Armageddon, So Buy These Stocks [View article]
This was an incredibly stupid move. No matter how much one may oppose payday loans, killing them in Texas also kills some 13,000 jobs and over a billion dollars in labor income. What Texas politician would want to be remembered as a job killer?
I would be shocked if this bill makes it out of the House Committee and if it did, passed the House.
EZCorp, Inc.: Like All Value Investing, Hidden In Plain Sight [View article]
An excellent analysis of what I believe is one of the most undervalued stocks in the market.
Two notes:
1) The volume of gold scrapping increases during period of price volatility, as opposed to periods of elevated pricing.
2) My understanding is that Mexico does not have a usury cap, and that is written in the Constitution, making it virtually impossible to impose rate caps. Is that correct?
The CFPB Is Not Armageddon, So Buy These Stocks [View article]
The CFPB Is Not Armageddon, So Buy These Stocks [View article]
Imax Has a Collapse in Its Future [View article]
You need a new calendar, bro. ;-)
Yield Kidnapped By The Fed? Why It Happened, And Today's Best Income Investments [View article]
There's a reason BDCs are lending to these businesses -- because they can't get bank loans. They are filling a void. Perhaps some of the banks, eager to lend, will branch out a bit and lend to a few of these businesses.
But banks are so terrified to even make loans, I don't see it happening.
Yield Kidnapped By The Fed? Why It Happened, And Today's Best Income Investments [View article]
EZCorp: Very Cheap, But Read The Fine Print First [View article]
The 36% APR rate cap FOR MILITARY had already been in existence -- your linked article itself reminds us of this. The only thing the amendment to the Defense Authorization Act did was to extend this rate cap to open end lines of credit, which payday lenders never even offered to military because they lose money.
This was an act of CONGRESS, not the CFPB. I repeat, the CFPB does NOT have rate setting authority. It's in the legislation that created it. Look it up, please.
And in case you hadn't noticed, the Democrats controlled both houses of Congress from 2008-2010. No legislation was introduced then. Nor will it be introduced now. The reason for the military rate cap was because it was the military -- politicians look good when they do things that protect the military. The payday industry didn't bother fighting that legislation because military made up 3% of loans.
Further, Sen. Tim Johnson has seen the value of the payday loans for many years, and chairs the finance committee. No legislation limiting rates for the average consumer will make it past him.
Please do your research. I am always available to offer guidance and information as authors write their articles on payday.
EZCorp: Very Cheap, But Read The Fine Print First [View article]
First, you said "legislative threats". That means actions by Congress, writing laws that could threaten the industry. No such laws are coming.
What you mean are "regulatory threats". The CFPB specifically does NOT have the power to regulate or change rates. It is specifically indicated as such in the Dodd-Frank legislation that created the CFPB.
Thus far, the CFPB has not said they have any intention to attack the payday industry. Cordray has indicated he wants transparency to consumers, which the industry has always provided.
EZCorp: Very Cheap, But Read The Fine Print First [View article]
There is no legislative threat to payday at the federal level.
None. Zip. Zero.
Rgarga, AEA was taken private early last year.
Yield Kidnapped By The Fed? Why It Happened, And Today's Best Income Investments [View article]
Yield Kidnapped By The Fed? Why It Happened, And Today's Best Income Investments [View article]
This other article shows very clearly the deleveraging that's going on.
http://bit.ly/WNMRoK
The rest of your suppositions are reasonable, but they are not mutually exclusive with the present situation I wrote about.
Yield Kidnapped By The Fed? Why It Happened, And Today's Best Income Investments [View article]
Education Management Co.: A Smart Buy [View article]