Friday, October 16, 2015

Strange, but you just never hear CM Blair talking about how the other half banks.

"Baradaran argues persuasively that the banking industry, fattened on public subsidies (including too-big-to-fail bailouts), owes low-income families a better deal."

If for no other reason than low-income families actually being ableto forget their troubles at the bright shiny water park -- right, Scott?

‘How the Other Half Banks,’ by Mehrsa Baradaran, reviewed by Nancy Folbre (New York Times)

In 1890 the journalist Jacob Riis published “How the Other Half Lives,” a powerful indictment of the horrific tenements of New York that gave rise to a significant housing reform movement. Mehrsa Baradaran, a University of Georgia law professor, reaches for a similar impact in her description of the oppressive financial environment that low-income families inhabit.

The answer to the implicit question contained in her title, “How the Other Half Banks,” is simple: The “other half” hardly banks at all. Many families below the midline of income distribution in the United States rely heavily on check-­cashing services, payday lenders and title vendors charging fees and interest higher than any chartered bank could legally impose. Financial deregulation enabled banks to slough off low-income customers even as it created new opportunities for storefront profit-taking.

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