Like, there could be a depression in this banana republic.
At this point, if the Federal Reserve stops juicing the economy, Pento argues, we could be looking at another depression.
“That’s why the Fed’s panicking,” he said. “If anybody still believes they’re omniscient or omnipotent or know their butt from their elbow, that’s over.”
The Federal Reserve is expected to lower its benchmark interest rate this week by 25 basis points, the third such cut in three months. According to the minutes from the Sept. 17-18 meeting, “downside risks had become more pronounced since July,” yet “several participants” wanted the Fed to provide more clarity on when the response to those risks, including “trade uncertainty,” would end.
The fun side of sorcery – nearly unlimited free fiat for the banksters!
The dark side – 100% rates for the working poor!
And yet today, just a few years later, many of the same subprime lenders that specialized in the debt are promoting an almost equally onerous type of credit.
It’s called the online installment loan, a form of debt with much longer maturities but often the same sort of crippling, triple-digit interest rates. If the payday loan’s target audience is the nation’s poor, then the installment loan is geared to all those working-class Americans who have seen their wages stagnate and unpaid bills pile up in the years since the Great Recession.
The crisis is too big not to fail.