Payday Loans

[Nancy Holmes <ncmholmes@moscow.com>]

As you continue discussing the paycheck-autotitle loan business consider
this information.

These are business operations, not public services. They seek profits in
three ways, which is the model of American entrepeneurism perfected in the
last three decades.

At the consumer level they sell a product; high interest loans. They are
set up to do so in a way that is largely unregulated. Initially their
target customers were people outside the reach (because of residence,
ethnicity, income, spending habits, education) of normal banking
institutions and practices.

At the business level they sell a franchise. Somebody's savings are at risk.

At the corporate level they sell shares. The corporations have shown good
profits and have distributed sizeable dividends. Stock prices go up which
attracts more investors. Big investors include mutual funds and banking
institutions. Your money.

When it comes to money and investing it is hard to tell the difference
between a stategy and a scheme. Our economic system, which is quickly
becoming the global economic system, allows for the appearance of
statistical prosperity in two different ways. One is to generate (and
eventually distribute) wealth through the accumultion of valuable assets.
The other requires existing valuable assets to change hands as frequently
as possible. One is might and the other is magic.

Now, continue to chat. It is interesting.

						- Evan Holmes