Comments on: The folly of interest rate caps, cont’d

By: Hugo S Cunningham

Hugo S Cunningham — Tue, 18 Jun 2019 18:50:34 +0000

@SPO and MattS–

I suspect a Federal credit facility run by Bernie Sanders would be a welfare program like housing loans before the 2008 meltdown. The only enforcement question would be whether to deny further credit to those who were still in default from previous loans.

By: Hugo S Cunningham

Hugo S Cunningham — Tue, 18 Jun 2019 18:44:40 +0000

I have supported post office banking, but *only* for savings, to encourage the poor to build up rainy-day funds in preference to payday loans.

By: MattS

MattS — Tue, 18 Jun 2019 14:12:22 +0000

In reply to SPO.

“With the postal banking, some poor guy is going to stiff the postal bank, and the postal bank, being an arm of the government will chase him and chase him”

With guns, Don’t leave that part out.

By: SPO

SPO — Tue, 18 Jun 2019 12:00:54 +0000

When a borrower stiffs a payday lender, the payday lender basically has to eat it. The borrower cannot be prosecuted for writing a bad check, and the nationwide credit bureaus don’t accept information from payday lenders.

With the postal banking, some poor guy is going to stiff the postal bank, and the postal bank, being an arm of the government will chase him and chase him. Just watch.