Shortchanged: Life and Debt in the Fringe Economy by Howard Karger

By Howard Karger

"Shortchanged" takes an uncompromising examine the company vultures that prey on America's operating type. made from pawnshops, payday creditors, payment cashers, bank card businesses etc, the perimeter economic system entices weak shoppers into an fiscal netherworld of excessive rates of interest and ever-increasing debt. The publication examines the criteria in the back of the perimeter economy's upward thrust -- stagnant wages, emerging numbers of operating negative, and the 12 million U.S. families with no financial institution debts -- and investigates the sleazy practices -- immediate credits, cash-for-your-title loans, predatory loan lending, E-Z domestic fairness loans -- that bring about exceptional progress for the and a nightmare for the patron. strong research is mixed with relocating own tales of the moms, fathers, and households whose lives were wear the road for the perpetuation of this economic system. Ruthless, compelling, outrageous, and infrequently enraging, "Shortchanged" places the highlight at the shady aspect of America's monetary underbelly.

Show description

Read Online or Download Shortchanged: Life and Debt in the Fringe Economy PDF

Best economic conditions books

Investment Climate Around the World: Voices of the Firms from the World Business Environment Survey (Directions in Development)

The research of firm-level facts amassed via parallel overseas company surveys can exhibit very important linkages among governance constraints and enterprise development and funding. the area enterprise setting Survey (WBES), an initiative led by way of the realm financial institution workforce in 1999 and 2000, accumulated company info from greater than 10,000 corporations in eighty nations and one territory.

Miraculous Growth and Stagnation in Post-War Japan

This quantity examines diversified points of the japanese adventure in a comparative context. there's a lot the following of relevance to modern constructing international locations worried to begin the event of marvelous progress and concerned to prevent the next stagnation. Such problems with the position of presidency in offering the correct amount of boy or girl security, the relevance of the economic system, the country’s odd company constitution and the function of schooling in a comparative context serve to light up the teachings and legacies of this distinct adventure in improvement.

Themes in macroeconomic history: The UK economy, 1919-1939

Characterised via mass unemployment, protectionism, varied trade price regimes, the disintegration of the realm exchange, and terrible long term development customers, the interwar interval was once, via any criteria, a outstanding one. This textbook presents a survey of the major macroeconomic questions that arose from the adventure of the British economic system from 1919 to 1939.

Development economics in action : a study of economic policies in Ghana

Half A - Nkrumah and his instant Successors, 1960-72 1. creation 2. improvement, Disequilibrium and kingdom Interventionism three. the industrial recommendations of Nkrumah and his Successors four. household monetary functionality within the Nineteen Sixties five. exterior functionality: The foreign currency echange Constraint and its reasons 6.

Extra resources for Shortchanged: Life and Debt in the Fringe Economy

Example text

Unlike most fringe economy sectors, Dollar lost $28 million in 2004. 8 In 1985 there were 4,500 pawnshops in the United States; by 2000 that number had risen to 14,000, including five publicly traded chains. 13 Cash America is the largest pawnshop chain, with 750 total locations in 17 states. It also offers payday loans through Cash America Payday Advance stores. In addition, Cash America provides payday loans and check cashing through Cashland and Mr. Payroll stores. In 2003 Cash America had revenues of almost $438 million, with a net income of $30 million.

Besides, if a transaction seems unaffordable, the down payment, interest rate, or terms can be adjusted to make it seem manageable, at least in the short run. While the fringe economy makes goods and services available to consumers who can’t otherwise afford them, it also traps them in a cycle of debt. The fringe economy is an unforgiving system that claims to give the poor and credit-challenged relief and a second chance. On the contrary, vulnerable customers are dragged deeper into a quagmire of debt.

4 Under the Home Ownership and Equity Protection Act (HOEPA), a mortgage is considered high interest if the annual percentage rate (APR) is 8 points (8%) for first mortgages and 10 points for subsequent loans above the rate of return on Treasury securities for the same period, or if the fees and points at closing are 8% or more of the loan amount. This definition of a high-cost loan would be a bargain for the many fringe economy customers whose interest rates are measured in the hundreds of percent.

Download PDF sample

Rated 4.98 of 5 – based on 5 votes