Welcome to Banking Update, a roundup of articles and news from around the Internet. Let’s go right to the links.
Business at pawn shops is booming. Bargains for buyers and easy credit for borrowers has resulted in pawn shops taking over the role of traditional banks and retailers for many consumers. The average loan amount at a pawn shop is only $150.
Keynesian policies of government stimulus stop working when bond markets stop lending. Governments around the world are finding out that they have maxed out their credit cards. Who will bail out the banks this time?
The rich strike back at “imbecile” poor. JP Morgan’s Jamie Dimon, who made $23 million last year says “Acting like everyone who’s been successful is bad and because you’re rich you’re bad, I don’t understand it.”
Bank of America stock continues to collapse, falling below $5 for the first time since the depths of the financial crisis in early 2009.
The dark side of zero interest rates. Are low rates actually causing the economy to contract instead of expand?
The end game for endless debt expansion – unemployment at 23% and skyrocketing interest rates. Debt that cannot be repaid winds up being defaulted on.
How to get rich quick – sell properties that you don’t own to buyers who never bother to check out the property.
European government efforts to prop up insolvent banks grow desperate. Only a full scale bailout can restore confidence in the banks, but broke governments have exhausted their ability to borrow.
That’s it for today – have a great day!