Center for Ethics and Leadership

Monday, September 29, 2008

America Still Doesn't Get It -- The Financial Crisis

I took lunch at 1:30 today, just in time to watch the House vote fail and the Dow drop 700 points. About a half-hour ago, I received a prerecorded telemarketing call offering me a small business loan for $8,000. No, I am not in business. The caller has a bad list, but that is not why I posted this note.


  • America does not get it in general, but there are generational issues as well. My mother-in-law does not understand why we are struggling so much in this economy. She says you just go without in times of crisis. Yet, you can't go without gas or food, and this is where the issues are for most of America. Once you put gas in the car to get to work and feed your families, there is less left to pay the bills lets alone save for investments. Investments...must be nice.

    By Anonymous HLK, At October 4, 2008 1:47 PM  

  • The first measure failed in the house, a revised version made it through the senate. A few perks supposedly to make the package more acceptable to house republicans. Most interesting to me, salary caps for officers/managers kick in when the firm hits the $300 million mark in federal aid. $300 million??? There we have a measure that truly has the interests of the general population at heart. Another more down to earth point, FDIC insurance will cover deposits up to $250,000, from the current $100,000. The average American will certainly benefit from this increased financial security, how many individuals (or is it corporations again) have that much liquidity in any single banking institution? It is clear that Americans at all levels - governing and governed are pretty out of touch. It isn't looking like a good idea is on the verge of taking hold, so with the opening statement that America still doesn't get it, I'll have to agree.

    By Blogger kobe2, At October 4, 2008 2:32 PM  

  • America and Capitalism are both based on the freedom of choice. We as Americans and Capitalists should have the financial freedom to choose how we use our money, and we should be able to choose where we get a loan. The fact that certain states are banning a financial resource such as the payday loan industry is ridiculous. These states are taking away the availability of a loan to those who need money quickly, who don’t have the credit to attain one from a bank, who only need a few hundred dollars loaned instead of thousands. Don’t let the legislation take away your financial freedom and vote for your rights as an American citizen.

    By Anonymous Payday Loan Advocate, At October 8, 2008 1:16 AM  

  • It is more challenging in this economy than in previous ones to 'live within one's means'. Consumerism and conspicuous consumption have long dominated the advertising industry, and the easy availability of credit has simply compounded the problem. As Americans even our working poor are accustomed to luxuries unknown in other countries, things like TVs and cable TV, automobiles v. public transportation. As a matter of fact, even in a bad economy, there is always a market for cigarettes, alcohol and drugs. This week our local newspaper published an article that stated that parents cut back last on expenses for their children - then we as adults wonder why kids don't understand the value of money, obviously it is because we do not teach it.

    Towards the topic of payday loans - the reason for restricting the loans I believe is due to the usurious rates of interest attached to the advance - that too (like bank withdrawal fees) - are burdens that fall disproportionately on the lower classes. Liquidity needs to be available but not necessarily at an unfair price.

    Back briefly to the business loans for non-business people, here is an interesting statistic from this month's Harpers: "Portion of U.S. subprime mortgage buyers since 2003 who might have qualified or a prime mortgage: 3/5" - begging one to ask whether the current credit crisis is a supply or demand driven dilemma.

    By Blogger kobe2, At October 25, 2008 10:53 AM  

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