Grass Roots Groups: Big Banks are quietly profiting from payday lending

A group called Grass Roots Organizing (GRO) held a rally in front of the Bank of America Building in downtown St. Louis, announcing that big banks are quietly financing the biggest payday lending companies. The announcement was based on a report issued by National People's Action out of Chicago. I videotaped portions of the rally, which was led by an energized woman named Robin Acree, Executive Director of GRO. When you understand how payday lenders operate (and subvert the political process), you'll also understand why it takes some spunk to stand up to the lenders and to expose these shady dealings. [Note: Acree's microphone had malfunctioned just prior to this segment--she was still carrying it, but it wasn't working]. After seeing a bit of Acree's presentation, you'll see a two-minute confession by Graham McCaulley, who formerly worked at a payday lender and offers a laundry list of the unscrupulous practices he saw first hand. Consider that these two presentations constitute a formidable indictment of big banks. Here's an excerpt from the NPA document handed out at the St. Louis Rally:

Major payday loan companies receive their funding from the largest national banks . . . Major banks provide over $1.5 Billion in credit available to fund major payday lending companies . . . The major banks funding payday lending include Wells Fargo, Bank of America, U.S. Bank, JP Morgan Bank, and National City (PNC Financial Services Group) . . . Our analysis find that the major banks indirectly fund approximately 450,000 payday loans per year totaling $16.4 Billion in short-term payday loans . . . Major banks access credit from the Federal Reserve discount window at 0.5% or less, these banks extend an estimated $1.5 Billion annually to eight major payday lending companies, who in turn use this credit to issue millions of payday loans to consumers every year at average rates of 400% APR.

For a lot more information about 400% payday loans and why they should be outlawed, see this earlier post, which includes a powerful video of St. Louis attorney John Campbell (John and I work together as consumer lawyers at the Simon Law Firm). And isn't it incredible that it is almost impossible to convince state legislators to cap consumer loans at the substantial rate of 36%? Sad but true.

Continue ReadingGrass Roots Groups: Big Banks are quietly profiting from payday lending

Numerous American Muslim clerics guilty of sexually abusing children.

Just imagine how incensed most Americans would be if they saw the above (untrue) headline on the front page of their daily papers. Do you have any doubt that they would quickly investigate and prosecute the offenders, then throw them into prison? How amazing that when we substitute "Catholic" for "Muslim," so many Americans forgive the rapists and lean upon their victims. This is a paraphrase of a line used by Christopher Hitchens in an Slate article where he describes the unwieldy Belgian "problem" of the Catholic church. Well, the Belgian criminal justice system is now starting to crack down and the Catholic clergy continues to condemn this intervention of government, all the while stifling the investigations by attempting to withhold the evidence. The Catholic clergy would much rather be left alone, of course, but Hitchens sees this new development--that of "earthly justice"--to be an important and necessary step. If only this interest in those who have obstructed justice would happen with vigor everywhere. I would offer this suggestion: Dress up the American Catholic clergy as though they were Muslim clergy--tell people that they were Muslim sexual predators rather than Catholic sexual predators--and then watch the American media and justice system go at the offenders like attack dogs. We might even see some action aimed at those numerous accomplices who have worked so hard to cover up the evidence. Hell, we might even see Americans tear down Catholic churches that were within 10 miles of ground zero, if only we could somehow convince Americans that the Catholic clerics were disguised Muslims.

Continue ReadingNumerous American Muslim clerics guilty of sexually abusing children.

Anti-communist propaganda alive and well

For some reason, our government and its propaganda arm, the mainstream media, refuses to give up beating the dead horse that is Cuba. We've had it in for them ever since they went Commie, and we're not about to quit now! I just noticed this article from Newsweek entitled "Castro tells the truth about Cuba" which gives us the current bad news:

He has outlasted eight U.S. presidents, survived countless CIA efforts to do him in, and his communist regime has remained in power for a generation after the collapse of his Soviet sponsors. So what does the leader of the 1959 Cuban revolution think now of the system he created? Last week The Atlantic’s Jeffrey Goldberg reported Fidel Castro’s startlingly honest assessment: “The Cuban model doesn’t even work for us anymore.” Some observers suggest that the 84-year-old Castro’s unexpected honesty may be a belated attempt to throw himself on history’s mercy. After all, they say, Cuba is in tatters. According to Andy Gomez, assistant provost at the University of Miami, tourism on the island has declined 35 percent this year, and remittances are expected to drop to $250 million—far below the peak of $800 million earlier this decade. Cuba’s own National Statistics Office has reported that economic indicators, such as construction and agriculture, were down significantly in the first half of the year. And last month, President Raúl Castro began a process of dismissing or transferring some 20 percent of state employees—a major move, given that the government employs more than 90 percent of the country’s labor force. Says Gomez, “The Cuban economy is the worst it’s ever been.”
How dare Castro "survive countless CIA efforts to do him in", who does he think he is?? Anyway, some of these numbers are meaningless without comparison, so let's look at the good-old U.S. of A. [More . . .]

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Civilian deaths and bloody hands

I was reading this story about Bradley Manning, alleged whistleblower, and my hypocrisy meter was set off so strongly that I fear it may never work again.

Top Pentagon officials slammed WikiLeaks founder Julian Assange as having "blood ... on his hands" for releasing the sensitive documents, which appeared to include the names of Afghans enlisted as classified U.S. military informants. "Mr. Assange can say whatever he likes about the greater good he thinks he and his source are doing, but the truth is they might already have on their hands the blood of some young soldier or that of an Afghan family," Joint Chiefs of Staff Chairman Adm. Mike Mullen said.
Mr. Assange *might* have blood on his hands, the blood of some young soldier or that of an Afghan family. This, coming from the Chairman of the Joint Chiefs of Staff, leader of the US Military which has been raining death on Afghanistan for almost 9 years now.

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Family values

At Salon.com, Amy Benfer has roasted Bristol and Levi with an article beginning with this paragraph worthy of bronzing (the entire article constitutes a clinic on how to write, IMO):

She has been a (perhaps unwitting) symbol of her mother's ultimate pro-life commitment; he cut off his mullet and agreed to wear a suit for the Republican Convention. She spent her first year postpartum making bank telling other young women not to even think of having sex; he was dubbed "Sex on Skates" by New York magazine and stripped down to his skivvies for cash. But perhaps, like the boy who pulls your pigtail on the playground, all those differences and petty squabbles were a sign of true love; according to this week's Us Weekly magazine, it was all just a prelude to a big white Alaskan wedding: Bristol Palin, abstinence educator, and Levi Johnston, Playgirl model, have announced their (second) engagement.
I am pleased that, so far today, I have kept to my pledge to avoid discussing Sarah Palin on this site. Ooops.

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