This website uses cookies to ensure you have the best experience. Learn more

Money And Banking The Effect On The Poor

598 words - 2 pages

The exploitation of America's poorThe exploitation of the poor and elderly is an age-old social problem that is being taken to disturbing extremes by some of America's biggest conglomerate companies. In the article, "Fringe banks exploit the poor" written by Michael Hudson, Hudson reveals some of the United States larger corporations Ford, ITT Corp, Fleet financial services, Citicorp, And American Express have been the benefactors of aggressive lending practices through their subsidiary companies. Furthermore, these tactics have targeted the elderly, minority, immigrants, and the financially less fortunate with gargantuan interest rates and unneeded refinancing of home mortgages. Hudson informs us that all one has to do is take a drive through an inner city or a rural community and take a look at the pawn shops and large amounts of check cashing firms that charge upwards of 300% interest on a $150 loan to see it first hand. Hudson asserts that if a white person and black person with the same credit score walk into a bank or S&L for a loan, the chances are the white individual will get the loan while the black individual will only get discouraged.Why are these Fringe banks as Hudson calls them so lucrative that fortune 500 companies would be willing to lose lawsuits of upwards of $280 million as Fleet financial did? Two reasons of many reasons are the U.S.'s falling real wage, and increased legal and illegal immigration, which have lead to a shrinking middle class and increasing poverty-stricken class. Hudson questions the scruples of companies like Rent a center and cash America, Hudson informs us that firms like these engage in contracts were they know that the person has a 75-80 chance of default, meaning rent a center reposes their...

Find Another Essay On Money and banking the effect on the poor

Banking, Money and Finance Essay

1896 words - 8 pages of Economics and Administration, University of Malaya ‘Banking Sector Stability and Financial Liberalization: Some Evidence From Malaysia’ [ONLINE] available at [Accessed 5 May 2014] 5 Coricelli, F, Égert, B. and MacDonald, R. (2006) The William Davidson Institute, University of Michigan. ‘Monetary Transmission Mechanism in Central & Eastern Europe: Gliding on a Wind of Change’ [ONLINE] available at http

History of Money and Banking Essay

3112 words - 12 pages government involvement in the economy, money, and banking. The Panic of 1907 was initiated by failure of major businesses and poor monetary policy. (Rothbard, 2012) To relieve the stress put on the economy, J.P. Morgan stepped in and invested and revived the economy. (Consevapedia, ) After the crises, a clamor went up for another central bank so that America would not have future economic downturns. Senator Nelson Aldrich proposed this idea of what is

Money, Banking and Global Finance

1140 words - 5 pages difference. Also, the deep recession of the early 1980s reduced revenues, raising the deficit and forcing the Government to spend much more on paying interest for the national debt at a time when interest rates were high. As a result, the national debt grew in size after 1980.The U.S.'s deficit is bad at this point because the U.S. is close to its maximum production capabilities, and deficit money is being wasted. For example two of the largest portions

Natural Hazards and Their Effect on Rich and Poor Countries

2589 words - 10 pages Natural Hazards and Their Effect on Rich and Poor Countries 'Poor countries are more at risk from natural hazards than rich countries.' For this question to be answered the meaning of the word "risk" needs to be considered carefully. It may be referring to the risk of loss of lives

Banking and the Economy

1928 words - 8 pages faster payments possible. Money can be deducted from a chip without on-line authorization. This makes for a two-second transaction versus an up-to-two-minutes one, and telecommunications costs are saved (Lunt, P., ABA Banking Journal, September 1995, p.46).We can plainly see that there are many factors having great importance, when dealing with the economy. There are many things we must take into consideration in order to make any kind of an informed

The rich and the poor - class-conscious on income inequality

1393 words - 6 pages For the purpose of this essay this scholar will focus on an article that addresses population in the news. It is this scholar’s intent to discuss the subject matter in the article and specifically highlight the statistical information related to its findings. According to a January 12, 2012 New York Times article written by Sabrina Tavernise there is a rising perception of class tensions between the rich and the poor due to income inequalities

The Rich and They Poor

1133 words - 5 pages fact, they are doing the exact opposite, as they are causing it to spread faster. Swift then shows how the poor were mistreated by writing, "Thus the squire will learn to be a good landlord"(14). From this statement, the reader can infer that previously, the poor were abused and mistreated and the rich were not good lnadlords. Jonathan Swift then goes on to say, " Secondly, the poorer tenants will have something valuable of their own, which may be

Lessons Learned in Money and Banking

1514 words - 6 pages Economic uncertainty has caused exaggerated criticism of the Federal Reserve. Money and Banking has deepened my understanding of the Federal Reserve and has helped me challenge those criticisms. The U.S. standard of living would drop if people lost faith in the safety of financial institutions. Frederic Mishkin makes the point in the text, The Economics of Money Banking, and Financial Markets (2010) that “Banks and other financial

Textbook Questions Analyze How the Money Multi-plier Facilitates the Creation of Money by the Banking System

1648 words - 7 pages Running head: TEXTBOOK QUESTIONS 1 TEXTBOOK QUESTIONS PAGE \* MERGEFORMAT 2 Textbook QuestionsnameECO/372: MacroeconomicsdateinstructorTextbook QuestionsChapter 28 of Economics by Colander (2008) is Monetary Policy. Monetary policy is "a policy of influencing the economy through changes in the banking system's reserves that influence the money supply and credit availability in the economy" (Colander, 2008, p. 666). In this paper, I will

The Mongols and Their Effect on China

2620 words - 11 pages The Mongols and Their Effect on China Throughout history, there have been many empires that have shaped the outcome of all life on this world that we live on. Some of the greatest empires in the world, the Roman Empire, the greatest militaristic regime in history, or perhaps we can look towards northern Europe and the British Empire, those who had the capability to control the greatest amount of land mass in history. However there is one thing

The Peasants' Revolt and Effect on England

812 words - 4 pages means that they could not work on their own land to provide food to their own families. This burden benefited the church and led the serfs and peasants to more poverty. Hence, they were supported by a priest from Kent called “John Ball.” During this period, England was at a long war with France. In 1377, King Richard II imposed a new tax named “The Poll (Head) Tax” to compensate the loss of money needed in war. In May 1381, a tax collector called

Similar Essays

Money, The Federal Reserve System, And Banking

722 words - 3 pages Money, the Federal Reserve System, and Banking You have used money to measure the price, the size of business, total output in the economy, and income. Coins and paper money are called currency. People use currency daily. When you go to a movie, you probably buy a ticket with currency. Coins and paper money work well for small purchases and when payment is made directly from one person to another. But, for large purchases or when

The Effect Of Money On Fitzgerald´S Characters

2497 words - 10 pages empathy for others, they have no contempt for their objects because they can simply replace them, thereby ascribing very little value to their things, and they go out their way to use money to cover up their mistakes. All these traits are found in real people according to Dr. Kenltner and Dr. Trout who study social interaction among the rich and poor; they’ve found a lack of empathy, contempt for their objects, and both question the ability of the

Banking, Money And Finance Essay

2244 words - 9 pages and deposit with the monetary policy indicator. The result indicated that monetary policy shock is transmitted through bank deposits, the money view instead of bank loan, and the credit view. However, inflation and real exchange rate do influence deposit in the long run. The other test result, Impulse Response Functions (IRF) analyses the effect of interest rate shocks on future value of variables, the balance sheet item. The bank deposit

Money And Banking Essay

2331 words - 10 pages industrial growth due to its supply of natural resources. Additionally consumers for the first time ever were able to buy goods on a system of hire-purchase and credit. This allowed consumers to purchases goods and then pay for it on a monthly basis. Nonetheless, inequality within America was rising, the rich were getting richer and the poor were getting poorer. Further compounding the situation was the fact many Americans didn't personal