john in madison

How Will Payday Lenders Be Affected by New Bill in Congress?

Are you out of your mind? You are an advocate of Payday Loans? They are such a predatory industry. I personally know of people who's lives have been crushed by these companies. A very close friend of mine, too embarased at the time to ask for help, went to a payday loan company in Illinois for a $1500 loan because she needed to pre-pay her doctor/lab for a serious bone infection (her insurance had a $500 anual deductable and a 20% co payment meaning she had to come up with $1500 up front to be treated). Every 2 weeks that they were not able to come in and pay off the loan in total the loan automatically reset and were charged the handling fee of a little over $200 (withdrawn directly from their checking account). After 10 months of paying $450 a month to reset the loan (over $4500 on a $1500 loan) they still technically owed $1500. You have the nerve to call this a "reasonably priced product"? You also fail to recognize your own statisticts. You claim these companies need to make $15 per $100 loaned, that is 15%. Truth in lending requires this 15% to be reported as a massive APR since it is 15% in 2 weeks and the loan forms have to calculate the interest as a daily rate then multiplied out in to what that daily rate would be as an anual rate. The industry seems to think that this then means they can actually get a 5000% return on the loan. Your argument only makes sense if the 15% fee is charged up front and then if the loan is not paid ON THE NEXT PAYDAY, then it either goes to collection or becomes an installment loan at the APR allowed by state law for installment loans.

Chicago Standoff, Redefaults Bode Ill for Bank Shares

I disagree with 'Kingnukem" above. Many businesses that have a cyclical business depend on lines of credit to cover daily business expenses (rent, salaries, utilities etc.) while the wait for their yearly income. I used to be in the window business, and try as we might, winter is a very big slow down in sales. Nobody wants his or her windows removed in the dead of winter. The consequence is that window companies have a severe slowdown in sales in winter, which causes them to rely on lines of credit until their busy spring/summer/fall season. They spend the time building product for spring installations and accumulating materials for the big installation season. This is not a failed business, but it did fail because Bank of America apparently cancelled a line of credit. The bank decided to keep the tax money we gave them to pay dividends and buy other banks. Reply |Report abuse

On Dec 09 08:11 AM Kingnukem wrote:

> Amazing. Who really believes that pumping money into any failed business
> saves anyone's job? Unless the business is Amtrak.

Chicago Standoff, Redefaults Bode Ill for Bank Shares

II disagree with 'Kingnukem" above. Many businesses that have a cyclical business depend on lines of credit to cover daily business expenses (rent, salaries, utilities etc.) while the wait for their yearly income. I used to be in the window business, and try as we might, winter is a very big slow down in sales. Nobody wants his or her windows removed in the dead of winter. The consequence is that window companies have a severe slowdown in sales in winter, which causes them to rely on lines of credit until their busy spring/summer/fall season. They spend the time building product for spring installations and accumulating materials for the big installation season. This is not a failed business, but it did fail because Bank of America apparently cancelled a line of credit. The bank decided to keep the tax money we gave them to pay dividends and buy other banks.

Chicago Standoff, Redefaults Bode Ill for Bank Shares

I agree with '1 world currency' above. You are a prejudiced idiot if you think a policy that is pro-worker is socialism. The purpose of the TARP was to buy up troubled bank assets in order to free up capital so banks will lend. This is exactly the scenario discussed by congress prior to the TARP funding, that is, if Congress did not act banks would stop lending to business, cutting or reducing lines of credit that are the lifeline of businesses whose business is cyclical. Congress may have left out specific requirements in the legislation but the banks know what was expected from them in exchange for this money.

Emerging Markets Infrastructure Is Booming

athenian:

Look at funds dedicated to investing in these markets such as Templeton Emerging Markets Fund (EMF) which invests accross the globe in emerging markets or Templeton Dragon Fund (TDF) which invests in China. Both are closed mutual funds which means they are traded as stocks and both are currently trading well below their book value and pay a nice dividend.