Pawn loans and pawning is becoming far more high profile thanks to TV shows like "Pawn Stars." This photo of the "Pawn Stars" storefront is from Wikimedia Commons.

Television shows that feature various people who run pawn shops, offer pawn loans or buy and sell items for profit have popped up in the past couple of years. Now, wealthier customers are starting to frequent pawn businesses. The trade has suddenly gained respectability that it has not always had.

Reality television makes stars of people with a profession

A reality television show called “Pawn Stars” hit the air in summer 2009. The show, which debuted on the History channel but has since entered syndication, chronicles the goings-on at the Gold and Silver Pawn Shop in Las Vegas, Nev., according to Fox News. The main focus is the interactions between customers looking to sell items and owner/operator Rick Harrison or his father who co-owns the store. The TLC network recently debuted “Pawn Queens,” according to Reuters, about two women named Nikki and Minda who operate the Naperville Jewelry and Loan pawn shop outside of Chicago, Ill. Their store caters more toward women rather than being an all-purpose pawn store. The additional exposure has shed a little light on a somewhat mysterious profession.

New faces on old profession

Pawnbroking, according to Wikipedia, has been around for nearly 3,000 years old. Kings Henry V and Edward III of England paid for wars by pawning the Crown Jewels. Basically, a person takes a piece of property to a pawnbroker in exchange for a small personal loan. If borrowers don’t pay off the loans in time, the property is forfeited to the pawn lender. Pawn shops used to be used almost exclusively by middle and lower income people, but the wealthy have started frequenting pawn stores in recent years. Pawning has even gone online; Pawngo, according to SmartMoney, will wire someone a loan once they receive the pawned property via FedEx. Pawngo has issued loans against items like diamond rings, Cartier watches and even a genuine Picasso. Pawnbrokers have also done well in the recession, as large pawn and payday loan store chains such as EZCorp and Cash America have been reporting consistent profits throughout the past few years, according to the Salt Lake Tribune.

Gold rush has been a blessing

Over the past year or so, there has been an extensive amount of buzz about investing in gold and silver. In order for someone to cash in on those commodities, someone has to buy it, and pawn shops are doing a lot of the buying, according to MSNBC. Gold and silver have been hot commodities for some time, and pawnbrokers and precious metal recyclers are happy trade customers some cold hard cash. Some experts think it won’t last, though. For instance, economist Veronique de Rugy has observed that gold prices aren’t that high, once adjusted for inflation, and tend to fluctuate more wildly than just about any other commodity, according to Reason.com.

Sources

Fox News

Reuters

Wikipedia

Salt Lake Tribune

Smart Money

MSNBC

Reason

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You can get a cash advance on checking or a credit card, but you may be better off with a payday loan. Image from Wikimedia Commons.

Fees for a cash advance from a credit card or on a line of credit are rising. After the passage of the CARD Act, companies that offer loan credit through credit cards have to find ways to boost their bottom line. If it keeps up, consumers may be better off with a payday loan.

Cash advance fees are going up

The most common method of getting instant cash from credit is to go to a bank, in case you run into overdraft or need a loan until payday. A person simply draws out a certain amount of instant cash from their line of credit into their checking account, and then the balance is paid off the second the next deposit into said account is received. Bank of America and Wells Fargo charge about $2 per every $20 loaned, or about $10 per every $100. Another way to do it is to get a cash advance from a credit card. Essentially, a person withdraws money from their line of credit on the card, and has to pay a fee on top of the monthly interest. Those fees, according to Bankrate, have been increasing since the passage of the CARD Act of 2009.

Then there is a payday loan

Granted, the fees have only gone up 1 percent in that time. However, when that balance, along with that fee, is added to a balance, the interest on it can add up over a long time if it isn’t paid off. Lines of credit – like credit cards – are revolving, or in other words a person has to make payments. In essence, credit cards are revolving installment loans with a plastic card tied to them. Checking advances, like payday loans can be, have to be paid off with the next deposit.

The risk

The only thing is that a payday loan lender has more flexibility with payment plans. A bank will simply take the amount owed from a cash advance, and not offer a payment plan. A payday loan store can offer a little more flexibility. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

A person needs a payday to get a payday loan. Image from Wikimedia Commons.

The idea that payday loan lenders want to loan to anyone and everyone to get them hooked is ridiculous. Critics of the industry like to make claims about an awful debt trap and of predatory lending. The story goes that anyone with a pulse can get a loan of they ask. It isn’t true, and if any loan lender did business that way it would soon be out of business.

Pay day is the operative phrase in payday loan

A person has to have upcoming payday cash to get a payday loan. It’s as if the phrase “payday” somehow goes unnoticed, and that is not exactly the best way to build an argument. In order to get a payday advance, a person needs an upcoming payday; it is that simple. There are some glaring contradictions to claims about payday loan lenders, first being that they will let anyone borrow money, regardless of ability to repay. Nothing could be further from the truth. Not only do lenders pay strict attention to ability to repay, but if they ignored it they would soon be bankrupt and looking for a loan until payday themselves.

Ability to repay is the first criterion

The absolute first criterion among payday loan lenders for loaning money to someone is whether they can pay the loan back. Not only that, but the size of a loan is often pegged to income. The claim that lenders disregard income level and just loan to everyone is preposterous. Study of the payday loan industry reveals that profit margins are incredibly tight, leaving little room for error. One study found that a lender has to successfully lend and fully collect six loans to come up with enough money to lend one single small loan.

Only one industry was able to disregard income

There was only one industry that was able to disregard ability to repay, at least for awhile. Pressure on Congress got banks pressured into lending mortgages to people that couldn’t afford them, which led the subprime mortgage crisis, as risky mortgages had to be insured against. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Some contend that if you borrow short term loans, you'll be bankrupt and homeless soon after. No such correlation exists. Image from Wikimedia Commons.

Small short term loans like payday loans don’t cause bankruptcy. It’s been asserted by some that short term loans do. However, there has not been confirmation for that. Usually, for people to file for bankruptcy, they need to have debts of more than a few hundred dollars. The number of short term loan borrowers that file for bankruptcy is insignificant.

Short term loans actually prevent bankruptcy

Critics of payday loan and short term loan lenders contend that people will get sucked into a spiral of debt and be bankrupt within months if they so much as cast their eyes at a payday loan store. If that were true, no one would borrow them. Not only that, but a wealth of evidence would point to it, like bankruptcy filings. Serious study of the cash advance industry indicated that the correlation between borrowing money from a lender and bankruptcy was incredibly thin. In fact, according to CBS, a 2009 study by the American Journal of Medicine, six out of every 10 bankruptcies were due to medical expenses.

Link is thin at best

One study found that there was a slight correlation between payday customers in Texas and bankruptcy filings, although the number of payday customers who filed for bankruptcy in the study was less than 2 percent of those studied. A study conducted after the bans on payday loans were enacted in Georgia and Oregon found that more filings for Chapter 7 bankruptcy were observed in areas where payday lending was banned.

Extraordinary claims need proof

Because most studies of the demand for short term loans have found that unexpected expenses were the most common reason for borrowing, it is not likely that payday loans have much, if any, effect on personal bankruptcy. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Caps are great on heads, but no so great for cash advance lenders. Image from Wikimedia Commons.

One of the most common regulations on the cash advance industry is to cap interest rates. It may seem like it’s a good thing to do to protect consumers from unfair interest rates. In reality, interest rate caps are an unfair standard on cash advance loans. Furthermore, rate caps constrain businesses in an industry in which almost half of all loan lenders are small business owners.

The cash advance rate cap uses bad math

Many states have introduced initiatives that cap interest rates on loans, aimed at capping the rate of a cash advance, usually at 36 percent APR. It seems like an altruistic thing to do, but there are problems with a rate of 36 percent. First, one can hardly assess the fees on a cash advance or payday loan as APR. Annualized Percentage Rates should hardly apply to a loan that matures in two weeks or less. Assume a loan lender assesses a fee of $20 per $100 loaned. If that $20 fee were compounding once a month, the APR is 240 percent. If it is assumed to compound every two weeks, that $20 fee is 480 percent annual interest. However a fee of $20 per $100 assessed in simple interest, or a ratio of the total amount paid back to the amount borrowed, it is only 20 percent interest.

Cui Bono

The phrase “cui bono”, in Latin, basically means “Who Benefits?” In the case of a short term loan rate cap, the beneficiary is banks and credit unions. Credit cards look a lot more attractive than payday loans when APR is the standard.  However, if the total a person pays back were divided by the total amount of credit used, as in simple interest, payday advance loans start to look a lot better.

Price ceilings are bad

Essentially rate caps function as price ceilings, where a business has to charge no more than a certain amount. This means that the margin for profit is drastically reduced, and the consumer cannot benefit from price competition. About 50 percent of all payday loan store owners are independent small business owners, not giant corporations. Is that who should be punished in this economy? You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Banks and credit unions don't offer a loan until payday like a payday loan lender, because they can't. Image from Wikimedia Commons.

There is a good reason a traditional bank or credit union doesn’t offer a loan until payday to customers. Many people have wondered why it is that a small loan for a short period of time is solely the province of payday lenders. Banks and credit unions steer clear of the practice. There are good reasons why payday loans will never be offered by traditional institutions.

Typical institutions do not offer a loan until payday

A lot of people have observed that while you can visit any payday loan store for a loan until payday, a similar loan is not available at a bank or credit union. It turns out there are some very good reasons for that. Firstly, banks and credit unions have to shield themselves against risk. Most people who use payday loans when they need to borrow money do repay them, but the limited documentation needed is less than the average bank or credit union is willing to accept. Part of bank underwriting criteria is normally to perform a check of credit scores, which a person who needs quick cash doesn’t have the time to wait for.

Studies prove they can’t

Banks and credit unions cannot afford to offer a loan until payday, the way a cash advance or payday loan lender does. It isn’t profitable enough for them, and a bank’s first priority is usually the shareholders. A study by Victor Stango revealed that not only were credit unions not able to offer lower prices on payday products and break even or profit, they were also hampered by not having hours or locations as convenient as payday lenders. The same study revealed only 6 percent of National Credit Union Association members offered a similar product.

Reformers should not hold their breath

It is not likely that banks or credit unions will offer a loan until payday anytime soon. They have status as institutions, which leads many to think they are safe. However, the credit cards and overdraft policies many have makes them anything but. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Payday loans have clearer terms than credit cards. Image from Wikimedia Commons.

Stereotypes exist about many things, including lenders and borrowers of payday loans. A lot of people have the idea that the people who borrow money from such lenders don’t know what they are getting into. Allegations are often made of undisclosed terms and deceptive advertising. However, like most stereotypes, they aren’t reflected in reality.

Terms of payday loans must be disclosed

Any loan lender, including a lender of payday loans, has to disclose the terms of the loan up front. It is mandated by a law called the Truth In Lending Act, which was passed in 1968. In fact, if a person walks into any garden variety payday loan store, chances are that the rates, fees and terms will be displayed prominently in the lobby. The trade groups that payday loan and cash advance lenders belong to all have a code of standards referred to as “Best Practices.” Those standards include disclosing all terms up front and full compliance with the Truth In Lending Act. These Best Practices are mandated by the Community Financial Services Association of America, the Online Lenders Alliance and the Financial Service Centers of America.

Studies disprove stereotypes

Not only do terms have to be disclosed, but studies indicate that payday loan customers knew exactly what they were doing. Even as early as 2001, studies of short term loan customers revealed that the stereotypes didn’t hold up. One study found that of the payday loan store customers surveyed, 95.7 percent knew what the finance charges on their loans were. Of those same customers,  78 percent remembered receiving disclosure of the APR. A person can’t be fooled by what they actually know.

Hysterical claims never hold up

Though social crusaders often mean well enough, the facts can sometimes be omitted to make people out to be victims for the sake of being sensational. The hype often doesn’t live up to reality. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Urban blight and cash advance loans have as much to do with each other as chocolate and the fall of the Roman Empire. Image from wikimedia commons.

The universe operates on a system of cause and effect, which contradicts one of the claims some make about cash advance loans. For instance, there are people who blame a phenomenon called “urban blight” on cash advance loan lenders. The phenomenon of urban blight, or urban decay, began far before the cash advance industry even existed. That claim uses what is called a logical fallacy.

Cash advance loans blamed for urban blight

Numerous people have pointed to the cash advance loans industry as a culprit of urban blight. In fact, some cities have run cash advance and payday loan stores out of town because they believe that idea. Urban blight or urban decay is a phenomenon that has usually been associated more with a weakened economy, rather than the emergence of a single factor such as payday lending. It often goes without saying that this kind of decay really began decades before payday loans, as a product, even existed. It isn’t known where the first actual payday loan store was opened, but it is believed that among the first was Q.C. Holdings in 1988.

Fallacy of logic

The idea that payday loan lenders cause urban decay is a logical fallacy called “cum hoc ergo propter hoc.” Literally it means “with this, therefore because of this.” Basically, it means that because two things coincide, there must be a cause and effect relationship. If that were true, then a Pepsi commercial could cause a football team to lose the Super Bowl. There’s no evidence that payday lending is a cause of poverty, proximate or otherwise. One has to bear in mind that there was abysmal, wretched poverty in the world, including the United States, long before payday lenders arrived and even before the modern financial system did.

Dubious attrition

Poverty has a multitude of causes. Given that many negative economic conditions have nothing to do with short term consumer lending, crediting payday loans with urban blight it is a dubious attrition. You can read more in the Payday Loan Facts and Statistics report on Personal Money Market.

Payday lenders do not move into a poor area to turn it into a dust bowl. The truth about payday loan borrowers is actually surprising. Image from Wikimedia Commons.

The actual people that are payday loan borrowers are not who some claim them to be. Payday loan lenders are thought to target the most desperate and poor. Cash advance lenders are also said to concentrate in areas that are more densely populated by minorities. Like most stereotypes, the larger picture is actually a little more complex. Like most stereotypes, there isn’t a lot of truth in these views either.

The poorest of the poor cannot get a payday loan

The thing about the people who actually do borrow money from payday lenders, be it from a payday loan store or online payday loan lender, is that they are not the poorest and most desperate. First of all, one has to have a coming pay day to even be considered for a payday loan. One also has to have a checking account. Now, when it comes to banking, there are two designated people that don’t use a bank for every need. There are the “unbanked,” and the “under banked.” The FDIC and the Federal Reserve define the “under banked” as people who have a transaction account (e.g. checking or savings accounts) but still utilize alternative financial services (AFS) in order to obtain the products they need.

Proof of income is required

By definition, only the under banked can even get access to a payday advance. That means a person has to have a stable income. The unbanked, who are the poorest and most desperate, can’t get a payday loan if they tried. Furthermore, it is economics, not ethnicity, that determines where payday lenders locate. Studies have found that payday lender concentration correlated better to urban and rural areas where most of the population was younger than 40 and lived above the poverty level.

Stereotypes never live up to reality

The average payday loan borrower has a high school education or better, and makes between $25,000 and $50,000 per year. That is middle class, through and through. Considering how easily minimum payments and accumulating interest can trap a person for years, credit cards are far worse for that demographic. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Mortgages are far more a debt trap than a payday loan could ever be. Image from Wikimedia Commons.

It is almost impossible to prove that such a thing exists as a payday loan debt trap. Like many social issues, the truth is a lot more complex than many would like to admit. For instance, it is true that a lot of people who borrow money from payday lenders take out multiple loans. However, it has not ever been proven that people are taking out new loans to cover their old ones, which is called a rollover.

The debt trap myth

The contention that payday loans trap a person into an endless cycle of debt has never been proved. However, a 2005 study found that many payday borrowers indeed did borrow money multiple times per year. One study found that 29.6 percent of payday borrowers surveyed had 14 or more loans in the previous calendar year and 9.9 percent took out two or fewer, but 28.1 percent had no renewals or rollovers. However, no study has ever ascertained why chronic borrowers, less than half of all payday loan store customers, borrow money with such frequency.

Lender of last resort

The reason why payday loan lenders exist is that they will loan to people that no other loan lender is willing to take a chance on. All a payday lender looks for is the ability to repay, not credit scores. The reason why people go to payday lenders is that they have nowhere else to turn to. A 2009 study of payday loan demand shows the number of people who borrow from multiple sources of credit is 91.6 percent. Johnathan Zinman found that 70 percent of the payday borrowers he surveyed either were not aware of or had no alternative to borrowing from a payday lender.

Credit has risks

Some payday advance customers borrow frequently. However, consider also the debt trap of credit cards and mortgages. Few people ever will own their home outright, as few people stay in the same house or city for long enough. Because more money is lent by banks and credit card companies, those debt traps are legitimate according to social crusaders. That is some severely fuzzy logic. You can read more in the Payday Loan Facts and Statistics report on Personal Money Market.

Payday loan lenders couldn't prey on the poor and desperate. If they did, they'd be out of business. Image from Wikimedia Commons.

It’s been alleged that personal loan lenders, like payday loan lenders, prey on the poor and desperate. The claim is that people that can barely scrape by are enticed to take out loans until payday. The payments are too much, and they get hooked into an endless cycle of debt. The catch, of course, is that payday lenders don’t prey on the poor. In fact, they couldn’t afford to prey on the poor if they tried.

The average payday loan customer

If it were true that payday loan lenders preyed on the poor, that would be reflected in demographic studies. Unfortunately for critics, that isn’t the case. The average short term loan borrower is actually the definition of middle class. The bulk of payday customers make between $25,000 and $50,000 per year, they are more likely to be high school graduates or have completed some college, be married, have children and be younger than 45 years of age. Part of the argument that payday loans are predatory hinge on the borrower being unable to repay. Given that many payday lenders barely make $2 of profit from a single loan, it is hard to believe that instant cash would be lent to anyone that couldn’t repay it.

Cash advance stores cannot lend to just anyone

The presumption would be that cash advance lenders will give money to anyone just to get their hooks in them. That is far from the truth. In fact, it was found that up to 20 percent of first time applicants are rejected by the average payday loan store, and 11 percent of all applications are turned down. This means that even a lender of small loans has some definite criteria. The most usual criteria for getting a payday loan? That’s easy. It’s having some definite payday cash coming in.

Crusaders’ claims do not hold water

The idea that payday lenders lend to anyone is ludicrous. If borrowers were unable to repay, no payday loan store would stay in business long. Furthermore, the profit margin is usually 10 percent or less. That’s far less than Bank of America could tolerate. You can find out more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Every online loans lender gets on a bull's back with every loan. Image from Wikimedia Commons.

A lot of people have the idea that lenders of online loans can get away with just about anything. The offices for any online personal loan or installment loan could be anywhere, so people get the impression they can’t be tracked down. However, online loan lenders actually have to be far more careful than the average payday loan store. Online payday loan lenders face far more risk than banks or credit card companies.

Online loan lenders face more risk

Contrary to popular belief, payday lenders do not make money hand over fist. In fact, it can be downright hard for a lender to even turn a profit. The largest risk for a payday lender is default. Comprehensive data does not exist on the rate of defaulting on loans or on late payments, as the industry is largely privately held and many private entities are hesitant to publish their financial records, which in the case of the payday lending industry, has been acknowledged many times over. Online lenders face perhaps the greatest risk, as they have no community presence (no “face” to put on the name) and can be without any means of collection if a customer decides to take the money and run.

Loss for payday lenders is guaranteed

One study indicated that losses could account for as much as 25 percent of operating costs. That’s just for traditional payday loan stores, never mind online payday loans lenders. In 2009, the auditing firm Ernst and Young did a study of all the members of the Financial Service Centers of America, or the FiSCA, one of the major trade organizations that many payday lenders belong to. The typical payday lender in the FiSCA study charged $15.26 per $100 loaned, and of that $15.26, $3.74 of the fee went toward bad debts. Just more than $1.00 was realized as profit.

Online lenders the most vulnerable

An online payday loan lender has to assume a lot of risk. Essentially, every loan application is asking for hundreds of dollars to be lent, sight unseen. That’s a lot to ask of any business. You can read more in the payday loan facts and statistics report on Personal Money Market.

If cash advance lenders were stalking the poor like prey, they would be out of business. Image from Wikimedia Commons.

Critics of the cash advance industry have tried to say that lenders exploit minorities. The idea goes that minorities in poor neighborhoods are preyed upon by short term loan lenders to get them hooked. The truth is not that simple. A payday loan store goes where demand is highest. There isn’t a business on earth that doesn’t adhere to that rule.

Where cash advance stores cluster

One of the allegations made about payday lending is that lenders will move into specific areas in order to target customers according to race.The Center for Responsible Lending released a report that purported payday lenders in California clustered in areas in which predominantly African Americans and Latinos were located. The actual main focus of these locations was where alternative financial services in general, like check cashing, were located. Robin Prager, in a study released in 2009, found that payday lender concentration was high in urban and rural areas where most of the population was younger than 40 and lived above the poverty level. I payday lenders only lent loans for bad credit to people who couldn’t afford to repay, they would soon be out of business.

Demand determines location of supply

To argue that a business locating where there is demand for their services is predatory simply because of the demographics of the area is patently ridiculous. If that was the standard, marketing to any demographic besides everybody is predatory. Essentially, claims that lenders are unfairly targeting minorities in this case is like saying that if a chain of retail stores offers parkas rated to 80 degrees below zero in Anchorage while branches of the same retail chain do not in Phoenix is unfairly targeting Alaskans and preying on their need for protection against cold temperatures.

Economics determines everything

Correlations do not prove cause and effect relationships. Payday lending, as a business, also doesn’t yield enough high enough profits to lend to people who cannot pay the loan lender back. If they did, the industry would be out of business quickly. You can read more in the payday lending facts and statistics report on Personal Money Market.

A ban on payday advance loans would only add more to the unemployment line. Image from Wikimedia Commons.

There are a lot of people who would like to ban any and all payday advance loans. Social crusades, no matter how noble the impulse, almost always have consequences that are worse than the original issue. Banning cash advance lending will not have the positive effects that people think. More checks get bounced and overdraft fees assessed. A nationwide ban on payday lending would have other disastrous economic effects as well.

Payday lenders create jobs

Payday lending as an industry, in 2007, employed more than 77,000 in-store workers and created more than $10 billion of the GDP of the U.S. Payday lenders paid more than $2.6 billion in taxes (local, state and federal), and on average, employed at least three people per store. Payday lenders paid $2.9 billion in wages, averaging out to $25,521 per year, per store employee, excluding benefits, which more than 75 percent of payday loan store employees received from their employers. A total ban on payday advance loans would be a disaster for an already beleaguered labor market.

Bans have negative effects

Studies have shown that bans on credit like short term loans and personal loans do more harm than good. One study of bans found that in Oregon and Georgia, consumers bounced more checks after the payday lending ban than before it. The study, by Morgan and Strain, also found that more filings for Chapter 7 bankruptcy were filed in areas where payday lending was banned. Bank overdraft fees can add up to far more in interest than any cash advance or payday loan. Bear in mind that Bank of America, one of the largest banks in the world, charges $35 per overdraft. The average person also has up to 12 overdrafts per year.

Better off with payday loans

Humans have a habit of finding ways to satisfy demand. Payday loans create jobs, and keep people from bouncing checks and overdrafting accounts. They also keep real criminal loan sharks out of a job. You can read more in the payday loan facts and statistical data report on Personal Money Market.

Cinco de Mayo is all about the fiesta. Does that make Jan Brewer and la migra nervous? (Photo: Flickr)

Cinco de Mayo (the fifth of May) is a happy day celebrated across the United States and Mexico (primarily in the Puebla state) with song, dance, good food and even better beer, margaritas and tequila. Per Wikipedia, the fiesta celebrates the Mexican army’s victory over the French at the Battle of Puebla on May 5, 1862. While not a federal holiday, Cinco de Mayo is wildly popular, particularly in the U.S. where Mexican-Americans take time to celebrate their Mexican heritage in a (mostly) family-friendly atmosphere.

Cinco de Mayo protest: an equal opportunity event

Rumors are circulating that Cinco de Mayo 2010 won’t be quite as family-friendly for the people of Arizona. Thanks to the new Arizona immigration law, a large Cinco de Mayo protest may be brewing, aimed at Gov. Jan Brewer. At the state capital on Cinco de Mayo, a political rally to end all political rallies is allegedly being planned. Payloan stores may have to lock their doors. The rally may even include Arizona police officers who are worried that the Arizona immigration law has provisions that could subject police departments to lawsuit if they do not enforce the law “strictly,” says Rumor Miller.

Speakers from both side of the Arizona immigration law aisle are slated for participation in the Cinco de Mayo protest, including political figures like Tom Tancredo, Marry Matlin, Roland Martin, New Mexico Gov. Bill Richardson. In addition, some A-list celebrities may be there, including Salma Hayek, George Lopez, Jennifer Lopez, Ricky Martin, Carlos Mencia and Perez Hilton. Hilton will, of course, be blogging the event. Potential attendees are being encouraged to wear green, white and red to show their support of what is supposedly “in clear violation of the principles of the U.S.” That supposedly solid assertion about Arizona immigration law is actually very much up for debate.

Don’t worry, Cinco de Mayo fans: It could be worse

In an alternate universe where parody sites like The Spoof report news, we see that Governor Jan Brewer has revealed that Arizona will no longer celebrate Cinco de Mayo. There will be no parades, block parties, low-rider hydraulics contests, “Eva Longoria-Parker lookalike pageants,” margarita fests, “frijole fandangos,” weddings or anything else that could vaguely fall on the wrong side of la migra. Gov. Jan Brewer is spreading some tough love and will not be swayed by the namby-pamby antics of an Obama, Hillary Clinton, belly-dancing Shakira or Los Lonely Boys. No, Jan Brewer is going to see this thing through, claims The Spoof. Speedy Gonzalez and Slow Poke Rodriguez will officially be replaced by Rapid Reginald and Moseying Mike.

(Photo Credit: http://www.flickr.com/photos/gail/ / CC BY-ND 2.0)

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The unique space shuttle landing path took Discovery over many U.S. states. Image from Flickr.

At 9:08 a.m. Eastern time, the shuttle landing path came to an end when the space shuttle landing today was completed. NASA officially announced the completion of the space shuttle landing today after the shuttle landing path took Discovery and the crew over much of the United States – from state parks in Montana to a payday loan store in Georgia. This was the third space shuttle landing attempt, after two scrubbed landings yesterday.

Space shuttle landing today nearly scrubbed again

Today was the third attempt to land the Discovery space shuttle in Florida. Yesterday, two attempts were canceled because of clouds and bad weather. The space shuttle landing today had to be delayed by an Earth orbit due to nearby rain showers. After 238 complete orbits around the earth, Discovery touched down.

Shuttle landing path

The shuttle landing path that Discovery took was very unusual for NASA. Ever since the Columbia disaster in 2003, which scattered debris across California, Nevada, New Mexico, and Texas, NASA has scheduled the shuttle landing path so that it does not go overland. However, the Discovery shuttle landing path allowed the crew to get several extra hours in space as well as a payday loans’ worth of hours of extra sleep before the space shuttle landing today. This unusual shuttle landing path also allowed people in a large swath of the United States to see and hear the Discovery space shuttle landing today.

Next NASA Space shuttle mission

The next space shuttle mission NASA has planned is supposed to lift off on May 14. The Atlantis space shuttle is the first of the last three flights of NASA space shuttles. The final Discovery space shuttle flight is currently scheduled for Sept. 16 of this year. After the current space shuttle fleet is retired, NASA has been instructed to “refocus” on longer-range and longer-term missions to space.

Watch the space shuttle landing today

Methane gas is a constant concern in coal mines. Image from Flickr.

Tuesday morning, the search for survivors in the Montcoal, West Virginia mine explosion was called off. Mine owner Massey Energy is one of the nation’s largest coal producers, and Massey Energy had been repeatedly cited for safety violations at the site of the Montcoal, WV mine explosion. The small town of Montcoal, WV relies mostly on the coal mine and Massey Energy. Montcoal houses basically the mine, a grocery store, a payday loan store and many homes. At the time the coal mine explosion search for survivors was called off, there were still 4 missing miners and 25 confirmed dead.

Montcoal, WV coal mine explosion

The coal mine explosion in Montcoal, West Virginia, occurred at 3 p.m. local time in Raleigh County, WV. The explosion, most likely set off by vented methane gas, knocked out wired and wireless communications. The search for survivors of the Montcoal, WV, coal mine explosion included specially trained mine disaster dogs. One U.S. Department of Labor mine safety administrator has stated that he believes at least seven of the miners were killed while “riding out of the mine on a vehicle.” Roof collapse is not currently suspected in the Montcoal coal mine explosion. Instead, poisonous and combustible methane gas is suspected to have caused the West Virginia coal mine explosion.

Miners trapped in the Montcoal WV mine explosion

At the time of the coal mine explosion, there was hope that the miners that had been in the shaft might have been able to reach emergency chambers. Reinforced and stocked with food, water and air, these emergency chambers can support several miners for several days. Like payday loans, however, these chambers are only helpful if the miners were actually able to reach them. However, it appears that the coal mine explosion may have killed all 29 or 30 individuals that were in the coal mine at the time.

Massey Energy previously cited for coal mine safety violations

The exact cause of the mine explosion in Montcoal is not yet known. However, Massey Energy has been cited for dangerous conditions multiple times. Since Feb. 21, Massey Energy has received citations regarding the Montcoal coal mine six times. In the last year, Massey Energy has paid more than $380,000 in fines for “repeated serious violations” of safety at the Montcoal, WV coal mine.

Montcoal, WV to receive federal aid

President Obama has offered federal assistance to the coal mine explosion rescue effort. The Red Cross is also trying to get mental health services to the “very rural” area. Local churches and civic groups are also providing food and other support services to the Montcoal, WV, community. Massey Energy has confirmed seven of the 25 deaths from the coal mine explosion. The C.E.O. of Massey Energy also released a statement saying “Our top priority is the safety of our miners and the well-being of their families.”

Sources:

LA Times
Washington Post
Newsweek

Discerning the intent of the founding fathers has unfortunately inspired the pseudo-spiritual "mayhem militia" movement to lash out like impetuous children who have yet for form an adult understanding of our world. (Photo: drive-by times)

The recent arrest of the Hutaree militia and the landmark health care reform law has emboldened anti-government groups like the Guardians of the Free Republics to rattle their sabers. According to the Atlanta Journal-Constitution, at http://www.ajc.com/news/nation-world/fbi-warns-letters-to-428344.html, Guardians of the Free Republics have the FBI on alert for violent intervention. It seems that they have been contacting various U.S. state governors en masse and demanding that they resign as a part of their “Restore America” campaign. While the demands have not directly communicated threats of violence, the scale on which the notices were sent has captured the FBI’s attention. What also makes the FBI nervous is that the letters say that if the governors don’t leave office in three days, they will “be removed.” So long as they maintain steady income, however, at least they’d still be eligible for payday loans.

Guardians of the Free Republics’ messages stand out from other hate mail

Minnesota Gov. Tim Pawlenty told the Associated Press that “We get all kinds of, shall we say, ‘interesting’ mail, so it’s not out of the norm. It got more attention because it went to so many governors.” At least 30 governors have received the Guardians of the Free Republic’s messages so far, and the FBI expects that the remainder of America’s 50 state governors will be contacted. Security has been increased. Nevada Deputy Chief of Staff Lynn Hettrick said that while they aren’t overly concerned yet, they want to be prepared just in case.

Inspiring others to extreme action?

Even if the Guardians of the Free Republic do not intend violent action, the fact that their actions have been revealed to the public could easily inspire unstable, fringe individuals and groups to take up arms. The Hutaree militia fits that mold, and there are no doubt many more hiding in the shadows. The “sovereign citizen” movement, while not violent as a rule, tend to harbor those who would resort to violence at the least provocation, according to various intelligence reports. Overt racism directed at President Obama and his parentage – including the iconic “Obama Joker” poster – are just some of the signs that fringe groups are finding the courage to let their opinions flow.

What are the Guardians of the Free Republic’s goals?

Here are the Guardians of the Free Republics’ goals for your review. As you’ll see, some of the points will be of interest to freedom-loving citizens and Constitutional scholars, while others may induce laughter. You be the judge. However, if you take nothing else away from all of this, know that being an American means being a participant in the affairs of your country, including the right to use a payday loan store if that is what you wish. Separating yourself from having a say in the process – whether due to laziness, disillusionment, disenfranchisement or the overwhelming desire to live in a remote shack or other-Earthly paradise – makes you an outsider. Outsiders who resort to violent threats and acts rather than intelligent discourse are part of the problem, rather than a solution.

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Gas prices are still a long way from the all-time highs of 2008, but they’re inching up again. Will rising gas prices thwart the economic recovery? CNNMoney asked that question of Mark Zandi, chief economist for Moody’s Economy.com. Zandi believes that the average nationwide price for a gallon of gas may exceed $3 by Memorial Day; but before you run out to a payday loan store to finance your next fill-up, note that Zandi also believes the increase is not likely to “undermine the recovery.”

Will spending decrease?

The more people have to pay for gas, of course, the less they can spend on other things. According to the CNN article, however, several experts think that this time around, consumers will keep driving and keep spending despite the rising cost of gas. Zandi, for one, expects gas prices to drop back down this coming fall, and that’s why he thinks the current trend won’t reverse recent economic gains. Zandi admits, on the other hand, that we could be headed for trouble if gas prices don’t fall as he expects and $3 per gallon becomes the new norm.

The same old story of supply and demand

Gas prices reached $4.11 in the summer of 2008 partly because of a speculative frenzy, but have remained at less than $3 a gallon since October of that year. In that recent escalation, people actually changed their driving behaviors as a result of gas prices. Not only did they drive fewer miles, they stopped buying SUVs and other gas-guzzlers and started buying smaller cars.

As a result, demand for oil and gas began to decrease, and when Lehman Brothers imploded, gas prices took a rapid dive, dipping to $1.62 per gallon in late December 2008.  As the economy began to turn around and consumer-spending increased, gas prices began to rise steadily.

The rising price of gas may be a favorable sign

As the weather warms up, as workers find jobs, and as people drive more, the demand for gas increases, and prices go up. For those reasons, Zandi believes that the latest round of price hikes may not be a bad thing. The increase may simply mean that the economy is making a turn for the better.

AAA club spokesman Troy Green points out that many oil refineries shut down in March for maintenance, which results in a temporary decrease in supply and an accompanying increase in price. Also, grades of gasoline vary with the season and summer blends contain more clean-burning additives which make gas more expensive. Although there may be logical explanations for the increasing cost of gasoline, it remains to be seen whether personal loan companies will be increasingly called upon to help finance fill-ups at the pumps.