No Fax Payday Loans Blog: Spitzer’s Ghost

In 2002, Georgia passed an anti-predatory lending law that had all the usual provisions—it forbade deceptive practices in the disclosure of basic terms, curbed pre-payment penalties that kept borrowers from refinancing or selling their homes, banned usurious interest, etc.—but it also had a twist: it extended liability for violation of the new law to any player in the lending chain, including …

Your No Fax Payday Loans News Source Quoted With Edits From: Spitzer’s Ghost (Columbia Journalism Review)

Do you need No Fax Payday Loans to help repair your credit?

The entire industry needs credit repair

And the reference to Spitzer in the title refers to former New York Attorney General (and former New York Governor) Eliot Spitzer. As attorney general, he accused commercial insurance companies of bid-rigging. The implication sent the stock of the biggest players accused – Marsh & McLennan and AIG – plummeting.

Dean Starkman has written an outstanding article that sheds a great deal of light on the process state regulators went through to bring about consumer protection laws. The U.S. mortgage crisis was the catalyst. In order to protect homeowners. The above excerpt refers to 2002 anti-predatory lending legislation in Georgia, sparked primarily by the sub prime mortgage mess. In the following years, many state began to follow suit.

Starkman’s article probes this issue with eloquence and depth. I suggest you read it. However, I would like to draw your attention to the very first entry in the comments section, from a read by the name of Edward Allen. Note the portion I bolded, in particular:

You are on to something here, and it involves the state-federal relationship when it comes to finance. I read today that former New York investment banker Goldman Sachs is seeking a New York rather than federal bank charter. Hmmm. Why would this former go-go company do this just weeks after the federal government agreed to make it a bank in order to save it from a Lehman-like meltdown? And I note that the federal government has come to the aid of insurance companies that are chartered and registered by the states. It took the collapse of AIG for the states to realize they couldn’t underwrite AIG’s more than $1 trillion in failed investments, even though AIG was supposed to be a company with more than $1 trillion in assets. There is now talk I hear about making federal insurance companies. We have an insurance industry which has created and now manages a large part of the $64 trillion in derivatives through the credit default swap market, yet it is only backed by a few billions in state funds in the event it defaults. Who defaults on an insurance policy, you may ask. We might soon see.
Last point is that we have a secret derivatives market operating in the United States that Joe Six-Pack knows nothing about. Look somewhere for a quote on a credit default swap and see if you can buy one, if you want to see what I mean. Billions have been made on this market and pocketed by the elite players who are in the know about it. But Joe Six-Pack only gets to pick up the costs when it defaults and collapses, threatening to bring down the economies of the western world.

The insurance industry is teetering on the edge and credit default swaps are, as you’ll see if you follow the Wikipedia link, very much free of necessary regulation and extremely risky (on a very large scale, too). Massive financial failures we’ve seen (and possibly – but not hopefully – those yet to come) indicate that credit repair on a massive scale will be necessary. As individual consumers, we can spend, save responsibly and take out no fax payday loans if necessary. For the sake of America’s economic system, let’s hope big business learns to play the same way.