The Little Guy Can’t Even Get a $200 Loan Anymore

Published July 11, 2023

Again: Our Two Track Theory on those who peddle Leftism:

There are two tracks on the Left.

The Leadership track:

Who know their ideas suck, but they’ll be in the castle when the drawbridges are raised to wall off the hell-scape they’re creating.

The Rank-and-File track:

The Useful Idiots. The true believers who really do think these are great ideas – and don’t know they won’t be in the castle when the time comes.

The World’s Wealthiest are simply accelerating the disintegration of the world’s economy.

Collapsing it down – until it’s just big enough…for them.

And then they’ll raise the drawbridges….

Big Government and Big Business are, of course, part of the Leadership track.  And they continue to shrink the economy – to squeeze everyone besides them out of it.

And it’s working – like a charm.

Need a $200 Loan? Thanks to Rate Caps, You’re Mostly Out of Luck:

In New Mexico, an interest rate cap on specialized emergency loans went into effect in January….

In March, my organization, the Southwest Public Policy Institute, conducted a study where the consumer experience was examined and tested for big-bank small-dollar financial products. Recently, a follow-up study was completed taking the same model and applying it to credit unions and in states other than New Mexico.

“The results were disappointing.”

Ya think?:

Short-term, small-dollar loans have traditionally been offered by small-loan companies; banks and credit unions have steadfastly refused to provide these products to consumers.

But the list of companies engaged in short-term, small-dollar lending is shrinking rapidly as regulation targeting these lenders increases….

(O)f the three banks with branches in New Mexico currently ‘offering’ the small-dollar loan product, none approved me for a loan.

Of the 15 credit unions we tested over three weeks in New Mexico, only two returned anything favorable — and one of those was just a conditional approval.

That’s an 86% denial rate. Combined with the bank denials, my personal approval rate is 8%.

And the Big Gov-Big Biz cabal destroying the loan possibilities for Little Guys – further destroys the loan possibilities for Little Guys:

I also suffered a substantial decrease in my credit score from all of the hard inquiries. It was over 800 before I started this experiment. Now it’s at 706.

With an average credit score of 682, many New Mexicans would rapidly fall into the subprime category if they experienced the same credit score reduction; of course, many are already in that territory and banks and credit unions are hardly likely to lend to them if they will not lend to me.

Lather, rinse, repeat….

About ALL of this – we have LONG foretold.

DC Destroys the Economy – Then Bans Loans for Poor People:

As basic economics and 10,000 years of human history tell us – price caps murder the item capped.

Big Gov, Big Banks and Debt-to-GDP: We Little Guys Are Screwed:

Imagine DC is a playground.  (And why not?  DC’s denizens do.)

If there are fifty kids – and only ten seats on the merry-go-round – the biggest kids get the seats.  By bullying the forty smaller kids off the ride.

As money lending gets tighter and tighter – as there’s less and less money to lend – we Little Guys will be the very first ones bullied off the ride.

DC Is Ensuring Only Billionaires Can Get a Loan – In the Name of ‘Helping the Little Guy’:

Big Government…gave Big Banks a massive crony-government law (Dodd-Frank).  That made Big Banks even huger – and murdered thousands of their littler competitors.

Killing Off Community Banks: Intended Consequence of Dodd-Frank?:

The banks deemed too big are more than 30% bigger than before the Act was passed in 2010, and 80% bigger than before the banking crisis of 2008….

Meanwhile, their smaller competitors are struggling to survive. Community banks and credit unions are disappearing at the rate of one a day. Access to local banking services is disappearing along with them.

Small and medium-size businesses – the ones that hire two-thirds of new employees – are having trouble getting loans; students are struggling with sky-high interest rates; homeowners have been replaced by hedge funds acting as absentee landlords.

And bank fees are up, increasing the rolls of the unbanked and underbanked, and driving them…(to) payday lenders.

Lockdowns: Big Banks’ Further Market Consolidation – Further Aided by Big Government:

The recent government lockdowns and power grabs – imposed under the guise of the China Virus – have only hastened this ongoing, awful convergence….

These past two-plus government-addled years, it has been VERY good to be a Big Business.  Big Banks have not missed out on the crony largesse.

The Great Consolidation of Banks and Acceleration of Branch Closures Across America:

Branch closure rate doubled during the pandemic.

2021: The Golden Year for Bank Consolidation

Big Gov, Big Banks and Debt-to-GDP: We Little Guys Are Screwed:

Small banks used to lend money to the Little Guys.  Oh well.

But slowly, payday lenders have emerged to fill the Little-Guy-lending void left by Big Government’s murder of small banks.  So, of course, Big Government is looking to murder payday lenders too….

Payday lenders are way too small to lend to Big Government.  But they are a nuisance competitor to Big Banks’ lending dominance.

And since Big Government needs Big Banks to lend them money – Big Government is yet again doing the Big Banks’ Little-Guy-destroying dirty work.

So that Big Banks will return the favor – as Big Government looks to borrow more and more (and more) money to service its ever-more-atrocious debt-to-GDP ratio.

As always, the people hardest hit by DC’s perpetual crony-fest?

We the Little Guys.

Credit Cards v Payday Loans: Big Banks Dominate DC – Little Guys Get Dominated

Payday Lenders: More and More, DC’s Leftists Are Siding with Big Business

‘Hedge Funds, Big Banks, and BlackRock. These Guys Run the World’

We could go on, and on, and….

We’re so far gone – Little Guys can’t even borrow $200 anymore.

The drawbridges will be raised oh-so-very-soon….