re: A down side to Capitalism

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No upside but they mostly exist outside the areas of significant regulation (poor South).

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Yeah, no one pays attention to predatory lenders. It's a dark and impenetrable hole in society.

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unregulated trade.

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You people are so weird.

Did it ever dawn on the op that the reason the regulations exists is to keep people in perpetual cycle of indebtedness so they will be trapped and remain forever a customer of these paycheck places?

Much like people on welfare forever remain a dutiful democrat?

The only downside to capitalism is that it mirrors the people that participate in it.

If lots of people make dumb and immoral decisions, you get waste, fraud, etc.

That's the only downside I can see.

With any other economic system, the waste and fraud are a guaranteed feature of the system.

Capitalism is voluntary. It's exchanging goods and services based on a value that two people agree upon. It's the best, most moral framework for an economy that man has come up with.

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Capitalism is voluntary.

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Capitalism is the purest form of democracy. That Democrats are so opposed to it is probably the funniest and most tragic part of our ridiculous political process.

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Capitalism is voluntary. It's exchanging goods and services based on a value that two people agree upon. It's the best, most moral framework for an economy that man has come up with.

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Nah fam. Capitalism breeds inequality. It’s unjust. It’s unfair. It’s outdated and racist. We will not stop until capitalism is destroyed.

Reeee! The proletariat will rise! Reee!

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That puts a person with questionable decision making skills in a difficult position when Christmas is around the corner and his kids want bikes or a PlayStation 5.

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Even more direct difficulty if said poor person is driving a beater to get to/from work daily. Without payday lenders, where's he getting the money to keep that beater running?

I started out in Class B lending after college in '89, economy in a bad recession. Across the street was a payday loan office (Class C, banks are Class A). I learned the regional chain bank had a side company, Class C loan offices that originally were separated by only a door, legislature made them eliminate the door so people had to leave the building and reenter the loan side.

That was in OK. AR only since turn of the century has allowed some payday lenders. It was the late 90's before TX allowed a 2nd mortgage.

Predatory Lending is on the individual branch managers. They are the decision makers on who gets a loan and who is denied. It is not good business to lend predatorily. Ruins the profitability and delinquency of the office. The Corporation owning the office is a borrower too, their interest rates are tied to delinquency of their offices.

Across all 3 Classes of lenders they consistently maintain a 3% delinquency rate. 97% of all borrowers are within 30 days of current on all types of loans at the consumer level.

The benefits of low end consumer lending? Those lenders provide a chain of fully trained Managers. Very few stay in low level lending, they move up to banks and corporate positions. They also provide ready services and ability to purchase to low end consumers. Kinda like the Asian Convenience Stores in food deserts situation. If no one else is there, someone steps into the void but has to account for the greater risks to their own investment.

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No upside but they mostly exist outside the areas of significant regulation (poor South).

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So only the poor south is the afflicted here? Straw man bullshite.

Wanna know where this is? Where poor people are.

Wanna know where poor people are? Everywhere.

Wanna know how I know? I have a friend who works for Tower Loan. They’re all over the country.

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"It's the idiot who falls into these traps." No, it's a shady business going after poor and mostly uneducated people.

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Businesses are not responsible for your lousy credit rating. You are.

Only downside to capitalism is pareto principle. That's why capitalistic societies need to be Christian.