Sticker Shock

Back in the 1980's I learned that digital electronics always rapidly descend in price. Pretty much, if you bought a computer, disc player, or digital camera a month ago then the price would already be noticeably lower. But I recently was told (by Erich as he took the pictures here) that the camera he (and I) love to carry has increased in price since we bought them. I didn't believe him, so I looked it up at Pricegrabber.com and at Amazon. Amazon seems to show the real prices that the (lower) PriceGrabber links jump to. The exact camera that I bought for $160 from Amazon 7 months ago is now a whopping $358! Un-be-(expletive)-lievable. You may remember Erich and I raving about this little gem since he first bought his over a year ago. I shopped independently and at length to select the same camera. One odd feature of it is that it is available in a range of colors. I bought mine in Gold because it was the cheapest at the time, by $5. Now however, the price is about $180 in blue or brown, up to $358 in ... Gold! Apparently, this camera is now a hot item. Possibly one reason besides those we've mentioned on this site is that hackers have been at work. One can download uncertified "patches" to make this camera do even more amazing things. See Turn Your Point-and-Shoot into a Super-Camera at LifeHacker.com I feel that this is but another sign of our living in Interesting Times.

Continue ReadingSticker Shock

Payday lending in a nutshell

I represent consumers in several class actions against payday lenders. The suits are all based in Missouri, but payday lenders freely do business in most states. What are "payday lenders?" Here is a six minute video by the Center for Responsible Lending that will give you a good idea. To best understand what goes on, ignore the industry rhetoric. Instead, recognize that payday loan shops commonly charge more than 400% interest to the working poor, setting people up in debt traps from which the end result is financial ruin. Why not simply ban shops that engage in these practices? Good question. Ask your elected state and federal representatives why the hell they aren't taking serious action. Hint: the problem has a lot to do with campaign contributions. One more thing: the payday loan shops try to exculpate themselves with arbitration clauses that ban all class actions and class arbitrations. These clauses make it extra difficult to successfully sue these businesses, even when they are flagrantly violating the loan laws that do exist. By using these mandatory pre-dispute arbitration clauses, payday lenders are essentially giving themselves Get-Out-of-Jail-Free cards.

Continue ReadingPayday lending in a nutshell

Democrats: not the party for economic reform

In an article titled, "The Trouble with Democrats," William Greider of The Nation documents the many ways in which the democrats lack the moral will to rein in predatory lending and enact real economic reform. How about modestly adjusting the bankruptcy code to allow 1.5 million people to keep their houses? Forget it. How about capping payday loans at 35%? No way. You see, most Democrats are scared of payday lenders unless the interest cap is 390%. How about putting meaningful rate caps on credit cards? No way, because the financial services industry doesn't want that. This article is a thoroughly disgusting review of Democrat spinelessness and a reminder about who pulls the strings in Washington. Hint: it's not The People.

Continue ReadingDemocrats: not the party for economic reform

Nothing about our economic system has really been fixed, or even diagnosed, and time is running out.

According to SANDY B. LEWIS and WILLIAM D. COHAN, nothing about our economic system has really been fixed or even diagnosed, and time is running out. This is the theme of a powerfully and clearly written Op-ed piece in today's New York Times, entitled "The Economy Is Still at the Brink":

We’re concerned that nothing has really been fixed. We’re doubly concerned that people appear to feel the worst of the storm is over — and in this, they are aided and abetted by a hugely popular and charismatic president and by the fact that the Dow has increased by 35 percent or so since Mr. Obama started to lay out his economic plans in March. But wishing for improvement and managing by the Dow’s swings are a fool’s game . . .The storm is not over, not by a long shot.

Lewis, who owns a brokerage house and Cohan, a Wall Street banker, succinctly present the problem and some solutions:

Six months ago, nobody believed that our banking system was well designed, functioning smoothly or properly regulated — so why then are we so desperately anxious to restore that model as the status quo? . . . Instead of hauling out the new drywall to cover up the existing studs, let’s seriously consider ripping down the entire structure, dynamiting the foundation and building a new system that rewards taking prudent risks, allocates capital where it is needed, allows all investors to get accurate and timely financial information and increases value to shareholders and creditors.

The authors lay out numerous areas of concern, many of them in the form of pointed questions. Why, indeed, haven't we taken steps to change the system? As Einstein once said, insanity is "doing the same thing over and over again and expecting different results." Lewis and Cohan urge President Obama to take these real steps, to get serious about the faux solution so far imposed (the massive injection of federal money in the absence of any systematic fix).

Instead of promising the imminent return of good times, why isn’t Mr. Obama talking more about the importance of living within our means and not spending money we don’t have on things we don’t need? . . . We are 139 days into his presidency, and while there is still plenty of hope that Mr. Obama will fulfill his mandate, his record on searching out the causes of the financial crisis has not been reassuring.

Lewis and Cohan's Op-ed is must-reading and disturbing reading.

Continue ReadingNothing about our economic system has really been fixed, or even diagnosed, and time is running out.