Middle class destroyed – First your house, then your car…NOW your bed ! Predatory lending fuels the 1%….

 

With 80% of the American people in favor of raising the paltry federal minimum wage…even the Republicans can read the writing on the wall. With the midterm elections closing in, both political parties are ready to back an increase. It’s likely you will see a bi-partisian adjustment of the federal minimum wage to something near $10.00 an hour. While that is good news ..and way over due…it will not address the most distressing financial issue  America’s middle class now face…predatory lending.

America’s middle class has been strangled and shrunken ….most profoundly after the devestation left in the post   9/11 economy. Instead of investing in infrastructure and energy efficiency, the war against “terror” has indeed created terror….right here in our homeland..as well as around the world. The world of pay day loans and subprime lending is  further enslaving  the shrinking middle class.

Our banks borrow money at close to 0% interest from the privately owned Federal reserve. In an attempt to re-coup profits from their derivative swapping and market manipulation, the spread between their costs and what the middle class is paying is both outlandish and predatory. Homeownership is unreachable for many, with the percent of Americans renting  at an all time high. With no choice but to rent, landlords take advantage of those unable to get a home and are charging a premium for renting in most communities…with all the extra “juice” landing in the pocket of the banks and the 1% (Iluminati)

General Motors is American’s biggest source of sub-primes auto loans. If your wondering what percentage of  car loans are made at a sub-prime rate….it’s now a whopping 80% !!+  You have to get to work, you must have a car…so you pay what you have to pay to make a living for your family. The banks that buy this paper from GM, are all the well known major banks…the ones that are “too” big to fail. Car loan interest prices are often double digits, with consumers stuck with  long term auto loans on new and used cars …with little hope of breaking the cycle.

Now, the furniture industry is smelling blood. That mattress set  that costs the retailers say 400.00( everybody has to sleep) ..is priced at 1200.00(ON SALE..NOT) …but if you buy today it’s just 999.00. But the ugly truth is since your credit is shot…sub-prime lenders are taking 20% off the top from the retailer to get you financed. That 999.oo mattress set is padded by 200.00, so you can get the credit… your children have a place to  sleep.  On top of overpaying to obtain credit, that 999.00 mattress is often financed by a sub-prime “rent-to-own” lender..that BY LAW doesn’t even have to disclose what the APR is on the loan. Let’s just say what used to be high at 28.00 APR..in reality is a loan that you will pay 200% interest on if you take the “lease” or “rent to own” price.

GE and Wells Fargo, the two major retail lenders, have tightened credit standers, millions of American workers are now forced into these “sub-prime loan”. Every major furniture company has watched the car and housing market..and they have learned how to prime the pump. Kiosks are now set up in furniture and Appliance stores coast to coast…when you get turned down for standard credit…BAMM

So, the small increase in the minimum wage, will be sucked up by the high priced loans for your house, car, and now your bed and TV set. Until the middle class gets representation back into the political world, don’t expect anything to change. Neither the Republicns or Democrats have any control on the corporate bloodsuckers…in fact..we ALL are at the mercy of the 1% and their financial stranglehold on the “free” world.

                                                           Something has to change…and fast!





One comment on “Middle class destroyed – First your house, then your car…NOW your bed ! Predatory lending fuels the 1%….

  1. judith on said:

    What needs to happen is education that produces humans capable of asking questions and having the ability to delay impulses. You can’t spend your way out of debt.

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