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View Diary: Obama vs. Usury?  Why Not? (Updated) (251 comments)

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  •  It used to be tied to the prime lending rate (3+ / 0-)
    Recommended by:
    itsbenj, Geekesque, Pinecone

    Unbelievably, it worked just fine, and everybody knew what they were getting into.

    If wanting the country to succeed is wrong, I don't want to be right.

    by Angela Quattrano on Sun Mar 29, 2009 at 03:11:25 PM PDT

    [ Parent ]

    •  Righto ... I have made numerous comments (3+ / 0-)
      Recommended by:
      Geekesque, quotemstr, Freiheit

      about this over the past couple of years.  Used to be "prime plus" - and back when states could have usury laws, it usually capped at 18%.

      I think the ultimate beauty of reasonable usury caps (5% is really way way too low - even back when states had usury laws the lowest states had like 14% limits) is that people who should NOT be borrowing money will not be lent money at rates they cannot afford, and lenders will have to look for other ways to make money - like by giving loans to businesses that are trying to produce something.

    •  If we can arrive at a number that (1+ / 0-)
      Recommended by:
      Freiheit

      works, I'm all for it.  We just have to make sure that we don't choke off the supply of credit to people who need it.

      "[R]ather high-minded, if not a bit self-referential"--The Washington Post.

      by Geekesque on Sun Mar 29, 2009 at 04:33:54 PM PDT

      [ Parent ]

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