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CHARLES MILLS: USURY, LOAN SHARKING, AND HIGH INTEREST RATES |
This epidemic of usury is not caused by the free market but by bad national policy. For generations, one of the key things for which bank examiners have looked was the presence of risky loans. Today, examiners are more likely to look for a failure to lend to racial minorities. The standard for banking that once existed was the soundness of its loan portfolio. Now the banks, and especially the national banks, are encouraging people with negative net worth due to constant spending of money that the people do not have. Usury is the only way this can avoid being a losing proposition.
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