The Obama Administration Cracks Down On Payday Lenders

I agree that PayDay lenders need to be regulated because they do create a spiral of indebtness that few are able to escape, when you are living pay check to pay check, one loan from these predatory lenders automatically becomes a long term burden. On the grand scale, these predatory loans are sucking important consumer dollars out of the economy. However, I would add, that alongside these new regulations, the Consumer Financial Protection Agency needs to task our banks and credit unions to expand their lending. We haven’t forgotten how badly the banks froze credit for small businesses after the Great Recession, despite being bailed out by the American people, those banks focused on self-preservation instead of doing what they are designed to do, lend money to keep the economy humming along. Banks and credit unions need to redevelop lending programs for the average person and small business. We don’t have the correct proportion of financial instruments just as we don’t have the correct proportion of income brackets, income inequality has reared its ugly head since the 1970’s and it has only gotten worse decade to decade. We see it in lending, we see it retail and we see it in the restaurant business, all those enterprises that used to cater to the old middle class are tanking, yet fast food restaurants and Dollar Stores are doing gangbusters, the same as luxury brands that are doing unbelievably well. The middle classes demise is well documented and Bernie Sanders has some great ideas to turn it around.
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