The exploitation of Americas poor
The exploitation of the poor and elderly is an age-old neighborly problem that is being taken to disturbing extremes by any(prenominal) of Americas biggest conglomerate companies. In the article, hit banks exploit the poor indite by Michael Hudson, Hudson reveals some of the United States larger corporations Ford, ITT Corp, pass off fiscal services, Citicorp, And American Express have been the benefactors of aggressive lending practices by dint of their subsidiary companies. Furthermore, these tactics have targeted the elderly, minority, immigrants, and the financially less well-off with gargantuan fire rates and unneeded refinancing of home mortgages. Hudson informs us that all one has to do is take a hold through an inner city or a unpolished community and take a look at the dowse shops and large amounts of check cashing firms that charge upwards of 300% interest on a $150 loan to see it first gear hand. Hudson asserts that if a face cloth person and blue person with the said(prenominal) credit score walk into a bank or S&L for a loan, the chances are the white individual will get the loan while the black individual will only get discouraged.
Why are these Fringe banks as Hudson calls them so lucrative that fortune 500 companies would be willing to lose lawsuits of upwards of $280 million as Fleet financial did?
Two reasons of many reasons are the U.S.s falling true(a) wage, and increased legal and illegal immigration, which have lead to a shrinking middle class and increasing poverty-stricken class. Hudson questions the moral sense of companies like Rent a center and cash America, Hudson informs us that firms like these engage in contracts were they know that the person has a 75-80 chance of default, meaning rent a center reposes their respectable and the customer loses all of their equity.
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