3 ms·
Erm, do you have evidence that payday lenders are not making money hand over fist? This is a large statement with no evidence. I'm assuming they're quite profit
by scottlocklin 8y ago
Erm, do you have evidence that payday lenders are not making money hand over fist? This is a large statement with no evidence. I'm assuming they're quite profitable and low risk, for the same reason I assume fast food is; you see them everywhere there are poor people.
Making usury illegal has no downsides.
- nopriorarrests 8y agoSome big lending companies issue bonds to finance their operations. And, ironically enough, these bonds are _high yield_, meaning market does not trust that these companies are making money hand over fist. Any negative macroeconomic shock (like recession) can easily raise average loan default rate 2-3x and sink payday lender business in a single quarter. Such is life.