Monday, July 09, 2007

Great headline on the front page of the Oregonian

"Payday lenders lose interest in Oregon"

The heck you say? They "lose interest" when the do-gooders pass laws that make doing business unprofitable? Duh!

Talk about softpedalling the fact that the legislature basically euthanized a legal business, which by the Oregonian's own count has resulted, days after the laws took effect, in the closing of sixty stores. How many jobs did they kill?

Sure, there is something unseemly about the whole payday loan business. But the fact is, they are a source of liquidity for some people who have no other option, who might otherwise lose their lease or face some other significant difficulty if the source of quick credit is closed off to them.

But the purpose of this post isn't so much to debate the pros and cons of the payday lending business - it is to point out how the Oregonian constantly tries to obfuscate the reality of the effects of the policies they cheerlead.

To say payday lenders have "lost interest" is just laughable. Maybe they were trying to make some kind of cute double entendre, meaning they literally lost "interest" in the sense of the interest rate they could otherwise have charged.

In any event, why not be honest.

"Sixty stores close as new payday loan regulations take effect."


Mover Mike said...

Good point, the Oregonian used the wrong headline. Did you also notice, the bill supposedly limited interest to 36%, but according to the paper, the payday lenders can now receive 159% APR. That's not chicken feed!

Anonymous said...

Don't worry. The proper headline is actually in today's The Oregonion: "Price-fix law puts out-of-state firms out of business"

Anonymous said...

Only the most heartless of capitalistic bastards would mourn the loss of an industry that exists solely to soak the optioinless poor with interest rates of 300+% a year.

Anonymous said...

Amazing your defintion of a "legitimate business"...I guess legitimacy has no correlation with ethical values or promoting the common good...No, it would seem a legitimate business in your view of the world is any business that is not inherently illegal and of course, makes a profit.

No wonder Republicans are becoming more and more marginalized.

Rob Kremer said...

Anon 2:04 -
You are suggesting a very dangerous path - that the government should decide which business activities comply with their sense of ethical values and common good, and should be free to essentially euthanize those who are not.

Where would it stop? Just imagine the arguments that could (and would) be made against such things as meat production, fast food, violent movies, and, of course, cigarettes, to mention just a few.

When you hand over to the government the power to decide which business activities should survive based on some majoritarian sense of ethics, you have traversed well down the path to totalitarianism.

Anonymous said...

What's the "common good" Anon 2:04? Strip clubs & porn shops, do they promote the common good? Bars and taverns? Restaurants who serve high fat foods? What about Hollywood and the putrescence they peddle?

It's amazing how people like you are able to feed themselves, much less decide where to get a loan.

Anonymous said...

The fact is now people who cannot get conventional loans will have to borrow from sharks who will break their legs if they don't pay, just like in the good old days.

Anonymous said...

"The fact is now people who cannot get conventional loans will have to borrow from sharks who will break their legs if they don't pay, just like in the good old days."

Or start stealing more of our stuff and pawning it off.

Anonymous said...

Rob is absolutely right!!! For those who do not like the rates that these business charge DON'T GO IN!! This is not a debate over one subject, it comes down to choices of the American people. If I CHOOSE to go into a business and pay an interest rate that some may deem "loan sharking", what business is it of the government or yours for that matter?? Am I hurting anyone by my choice?? So what people are stupid and need the government to tell us what to do with our money, where to eat, what to watch, and what music to listen to? This is ridiculous. Instead of America maybe we should call ourselves the new Russia. Apparently the blood that our ancestors shed for our FREEDOM was in vain?

Really... people need to wake up! Slowly they are taking the everyday choices that we make as an individual.

Honestly with the capping on this bill not only are they putting many people out of work, they are only putting a band aid on the problem.

If people are in a place where they have no other choice but to go to these establishments, what options will they have now?

Instead we will see a huge increase in crimes. People are still going to need a place to go for help, and when they are desperate and loose all hope they do things that do hurt other people. Unlike what these businesses were doing.

And just a little food for thought. These establishments are meant for short term lending. I am going to give an example here for those who haven't done the math. If I have a check that is going to post in my bank that I know is going to bounce. Lets say 100.00 for example. I go and get a loan on Tuesday to payoff on Friday when I get my check. I pay 115.00 on Friday to pay that loan off. Now if I had let the check bounce the bank would have charged me an overdraft fee most charging at least 20.00 plus most charge you each day your account is in the red. Not only this but I have saved my credit with my bank. You wonder how I know?? I have used this in the past for this reason. This example is if you are dealing with one check. Lets say you have 3 or 4 that is going to post in your bank? hmmm 20*3 or 4. NOW who is loan sharking. Please you have all been bamboozeled by our government once again.

Before you start celebrating just realize this is just the beginning of the government taking away choices of the American people and soon none of us are going to be free!!