When in 2010 this happened…
I began pointing out the blatantly obvious:
The law made Wall Street – and preeminently the Big Banks – even more powerful.
And the only thing it “protected” consumers from – was access to loans.
Flash forward to 2020: And the totalitarian government lockdowns – in the name of a flu – further aided the murder of Little Guy lending.
Then Alzheimers-addled Joe Biden took office – to administer the coup de grace to lending to poor people.
By the time Biden, Inc is finished – poor people getting loans will be finished.
And we are rapidly arriving at our final destination.
A fortnight ago, I noted this….
“Big Government and Big Business…continue to shrink the economy – to squeeze everyone besides them out of it.
“And it’s working – like a charm….
“‘Short-term, small-dollar loans have traditionally been offered by small-loan companies; banks and credit unions have steadfastly refused to provide these products to consumers.
“‘But the list of companies engaged in short-term, small-dollar lending is shrinking rapidly as regulation targeting these lenders increases….
“‘(O)f the three banks with branches in New Mexico currently ‘offering’ the small-dollar loan product, none approved me for a loan.
“‘Of the 15 credit unions we tested over three weeks in New Mexico, only two returned anything favorable — and one of those was just a conditional approval.
“‘That’s an 86% denial rate. Combined with the bank denials, my personal approval rate is 8%.”
But wait – there’s more.
As noted above: As things devolve, things get worse for people further and further up the economic ladder.
Until only Big Government, Big Business and Rich People – own and control everything.
You’ll note that five years ago – was the Donald Trump Administration. Trump temporarily slowed our descent into Third World despotism and destitution:
“The average reported probability that a loan application will be rejected increased sharply for all loan types. It rose to 30.7 percent for auto loans, 32.8 percent for credit cards, 42.4 percent for credit limit increase requests, 46.1 percent for mortgages, and 29.6 percent for mortgage refinance applications.”
You know who the Big Banks aren’t turning down for loans and credit? Rich People. The Big Banks then take those loans – and make even more money on them. By selling them to Rich People.
“More and more wealthy art collectors are cashing in on low interest rates to borrow against their Picassos and Basquiats, adding to risks of a leveraged boom and bust in the art market.
“The Fine Art Group, an art advisory and finance firm, said loan requests surged by 30% in 2020 compared with 2019 as collectors sought to borrow against their collections to invest in more art or other businesses.
“Bank of America, a leading art lender, saw its art loan business surge 30% last year, while JPMorgan and Goldman Sachs also saw strong growth, according to industry executives.”
Poor peoples’ home loans – are down 46%. Rich Peoples’ art collection loans – are up 30%.
But wait – there’s even more.
This is from way back in 2014 – when Dodd-Frank was just beginning to work its anti-Little Guy magic.
“Not only are big-pocketed borrowers paying lower average rates on the high dollar value loans known as jumbo mortgages, but lenders are now requiring even smaller down payments — and, in some cases, they are waiving the mortgage insurance, too….
“And now some lenders have reduced the required down payments on these loans to as little as 10%, down from 20%, according to Tom Wind, executive vice president of home lending for EverBank.”
Since then, do you think it’s gotten better – or worse? This from 2021….
“For years the super-rich – advised by a suite of lawyers, accountants and bankers – have taken mortgages – often reaching up to 100 per cent of the value of the property – on the world’s priciest homes.
“The majority of loans are interest-only; most are never paid off unless the home is sold; increasingly, when the home is inherited, the next generation will take out a comparable loan. The money saved can then be shuffled around the world in search of the best tax deal….”
How very cozy all of that is.
As we know: There is only so much money available to lend.
The federal government is $32+ trillion in debt – and ever-rising. They have to borrow LOTS of money – just to pay interest on that titanic tally.
The Feds now have to pay EVEN MORE. Because they’ve had to drastically increase interest rates – to offset the inflation they created by printing trillions of fake dollars.
Which, of course, is a fatal vicious circle.
Add in 100% loans to rich people – on trillions in their assets?
And voila: Poor People can’t get a loan.