Digital finance – UK Digitala http://ukdigitala.com/ Fri, 24 Jun 2022 00:01:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://ukdigitala.com/wp-content/uploads/2021/06/icon-2021-06-29T121704.452-150x150.png Digital finance – UK Digitala http://ukdigitala.com/ 32 32 Labor market boost hits tech and crypto hard https://ukdigitala.com/labor-market-boost-hits-tech-and-crypto-hard/ Fri, 24 Jun 2022 00:01:00 +0000 https://ukdigitala.com/labor-market-boost-hits-tech-and-crypto-hard/ The good times continue to roll for the job market — there are still nearly two jobs open for every person looking — but a string of recent headlines about high-profile layoffs could give some energy to “spring 2020.” “. Seeing all of these household names in the headlines might make you think the economic […]]]>

The good times continue to roll for the job market — there are still nearly two jobs open for every person looking — but a string of recent headlines about high-profile layoffs could give some energy to “spring 2020.” “.

Seeing all of these household names in the headlines might make you think the economic recovery, defined as it has been by a blistering labor market, might be unraveling.

But labor economists warn it’s too early to know if any of this is a harbinger of broader unrest. After all, unemployment remains near its lowest level in 50 years.

“A pile of press releases from dozens of companies still only represents a tiny, tiny, tiny fraction of the workforce,” labor economist Aaron Sojourner told me recently. “We’ve seen very rapid and consistent job growth…so there’s plenty of reason to expect a deceleration – it’s not yet clear if it’s turning negative.”

Sojourner is in a unique position to find out. In March 2020, he and fellow economist Paul Goldsmith-Pinkham were among the first to accurately predict the first avalanche of nearly 3.5 million layoffs in a single week, nearly three times the estimate offered by Goldman. Sachs.

So far, he sees no evidence of a general pattern suggesting that the labor market is slackening. It’s not a promise that it won’t change, he says, but he remains optimistic.

He would warn bearish watchers to keep in mind that many of our economic problems stem from things going too well. “People complain that consumers have too much money, they spend too much and drive up prices… Everyone works who wants to work,” he says. “These are very high class issues.”

LOOK AHEAD: Although the layoffs are rather limited to sectors sensitive to interest rate hikes, even the Fed admits that it may not be possible to control inflation without causing losses jobs.

“There is a risk that unemployment will increase,” Fed Chairman Jay Powell said during a hearing before the House Financial Services Committee today.

The central bank lacks “precision tools”, which means we could see job losses more broadly.

Unemployment stood at just 3.6% in May, down from nearly 15% in the spring of 2020. Even at 4% or higher, Powell said, the labor market would “remain very strong.”

NUMBER OF THE DAY: 529 MILLION DOLLARS

Some people might feel a little uncomfortable investing in Big Oil in the Year of Our Lord 2022. Because of the whole, you know, catastrophe that’s warming the planet, polluting the air and is horrible to god the fossil fuel industry is.

Not Warren Buffett. Omaha’s Berkshire Hathaway Oracle just doubled its energy investments, losing about $529 million on 9.6 million shares of Occidental Petroleum last week. If you can overcome the immorality of it all, it’s a pretty solid bet: Occidental Petroleum shares are up 92% this year, while the S&P 500 is down more than 20%. So, yeah… come on, hippies, let’s get rich.

PREDATOR

Most people are, understandably, rather grumpy about soaring prices for gas, food, and just about every essential item you can think of.

There is, however, at least one industry dancing on the grave of our sustainable incomes: predatory payday lenders.

Here’s the deal: Payday loans, aka cash advance loans, are the kind of short-term bridge that can feel like a lifeline when you’re living paycheck to paycheck. But they come with criminally high interest rates, often over 500%, depending on your credit and income. And our current economic climate – marked by high inflation and low unemployment – ​​is exactly the kind of environment where these lenders thrive, writes my colleague Nicole Goodkind.

A subprime lender, Enova, recently said on an earnings call that 44% of all loans it made last quarter were to new customers. It’s amazing.

But it’s also easy to see why people get desperate:

  • Inflation in the United States is the highest in 40 years.
  • Gas is hovering around $5 a gallon, more than 60% more expensive than a year ago.
  • Across America, bosses are calling workers back to the office, which means more driving.
  • The federal minimum wage, meanwhile, still sits at $7.25 an hour, where it has stood since 2009.
  • About two-thirds of Americans live paycheck to paycheck, according to a survey. (This figure jumps to 82% among workers earning less than $50,000.)
  • People with subprime credit scores (below 650) find it difficult to get a loan from a regular bank or qualify for credit cards, leaving them with few options when money is tight .
  • To hear predatory lenders say it, they provide services to low-income communities by providing loans to people that traditional banks have turned down. High interest rates are necessary because of default risk.

Consumer advocates call BS.

“There are 18 states and the District of Columbia that have banned payday loans and have survived very well without these predatory loan products,” said Nadine Chabrier, senior policy adviser at the Center for Responsible Lending. “There are fair and responsible loan products that have low interest rates and fees that are available for people to use.”

Read Nicole’s full story here.
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Amy wanted to get rid of 34HH boobs until she found OnlyFans and made £40,000 in a month https://ukdigitala.com/amy-wanted-to-get-rid-of-34hh-boobs-until-she-found-onlyfans-and-made-40000-in-a-month/ Sun, 19 Jun 2022 13:23:27 +0000 https://ukdigitala.com/amy-wanted-to-get-rid-of-34hh-boobs-until-she-found-onlyfans-and-made-40000-in-a-month/ A woman who wanted a cut to stop people staring at her 34HH boobs is now earning £40,000 a month on OnlyFans and has paid off her family’s total debt of £130,000. Amy Sophia, 27, from Leeds, was so insecure about her ‘huge boobs’ that she used to try to hide her figure in baggy […]]]>

A woman who wanted a cut to stop people staring at her 34HH boobs is now earning £40,000 a month on OnlyFans and has paid off her family’s total debt of £130,000. Amy Sophia, 27, from Leeds, was so insecure about her ‘huge boobs’ that she used to try to hide her figure in baggy jumpers or tight clothes that would ‘crush’ her chest.

When she went clubbing with friends, she says strangers made comments and looks that depressed her. “Usually when I went to clubs or out in public it was the women who would tell me to ‘put it away’ because their boyfriends were staring at me,” Amy said.

“I usually ignore it, but I once got kicked out of a nightclub for flashing this girl who told me to cover up. I was just sick of it. I have such bad posture from the way I was always leaning forward to hide my boobs because when I kept my back straight it made them even more prominent and I hated that attention.

“Now the looks and comments don’t bother me anymore. I know they’re just jealous or they have body issues, they’re obviously not happy in their own skin.

Amy was working five days a week as a spa therapist earning £8.50 an hour when she decided to set up an OnlyFans page in October 2019. She says the site gave her confidence and helped her embrace her curvy figure.

When she joined she was saddled with debts of £30,000 from payday loans. Amy said: “I’ve always wanted a champagne lifestyle on a Coca Cola budget. I went on vacation abroad and always bought new clothes.

“Because of the high interest rates on payday loans, I was stuck in a vicious circle. Then there was a buzz around this new site, OnlyFans, and something just told me to do it. for money.

“I knew my boobs were getting attention, so I decided to use them to my advantage instead of hiding. In my first month I made £7000 which was insane.

“Every month it was increasing – my best month of income was £150,000, but I average around £40,000 now.”

As well as paying off her own debt of £30,000, Amy was also able to help her parents pay off a combined debt of nearly £100,000. She said: “Helping my family out of debt was the first thing I did with the money.

“It took me about four or five months before I started winning big before I could do it. Mom was so grateful. She’s fully supportive of what I’m doing and always has been from the start.

“The people who are important to me in my family have supported me and that’s all that matters. I’m so lucky to have such an understanding family behind me. I love them so much.”

As a teenager, the model’s figure “changed overnight” as she struggled to embrace her curvy new figure. She said: “I woke up one day when I was about 15 and it’s almost like my boobs just grew overnight, they were huge.



Amy Sophia (Press Jam)

“I slowly started to dislike them as they got bigger and bigger. I felt like I had a hard time hiding them and people looked at me a lot. I avoided certain exercises at the gym and I had trouble buying clothes because they didn’t suit me or I was worried that everything would look too slutty.

At 23, she went to see a doctor about breast reduction, but the details of the operation were so daunting that Amy took longer to think about it. She said: “I was sick of the attention, of the men watching.

“I couldn’t enjoy shopping and buying nice clothes. I also felt like my big chest made me look fat because it hid my shape in the clothes.

“I learned how serious a reduction is, so I took my time to think about it. But during that time of reflection, I discovered Only Fans.

“That’s when I started kissing them. The positive attention has really changed my mindset.



Amy Sophia (Press Jam)
Amy Sophia (Press Jam)

“I realized that a lot of guys there love my boobs and now they are my sources of money.”

Amy likes to spend her earnings on clothes, fine dining and luxury travel – and has been to Mexico, the Maldives, Rome, Thailand, Las Vegas and all over Europe. She also had a Brazilian butt lift to further enhance her figure.

The model added, “I’ve always wanted beautiful things and to do the beautiful things in life. Now I can live the life I always dreamed of and wanted so badly.

“I do what I do for the money, which gives me freedom and freedom is everything to me.”

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What are the other names of Juneteenth? The United States betrays the spirit of the “Jubilee” https://ukdigitala.com/what-are-the-other-names-of-juneteenth-the-united-states-betrays-the-spirit-of-the-jubilee/ Fri, 17 Jun 2022 17:50:23 +0000 https://ukdigitala.com/what-are-the-other-names-of-juneteenth-the-united-states-betrays-the-spirit-of-the-jubilee/ This story was supported by the Economic Hardship Reporting Project, a nonprofit journalism. Dating back millennia, the Jubilee was a momentous celebration, a year when the land was to be returned, debts canceled and enslaved people were to be set free. Heralded by the thud of a ram’s horn, note biblical scholars, the Jubilee year […]]]>

This story was supported by the Economic Hardship Reporting Project, a nonprofit journalism.

Dating back millennia, the Jubilee was a momentous celebration, a year when the land was to be returned, debts canceled and enslaved people were to be set free. Heralded by the thud of a ram’s horn, note biblical scholars, the Jubilee year was grounded in the idea of ​​freedom, orchestrating an economic, cultural and moral reorganization of society. It is therefore fitting that Juneteenth is often called Jubilee Day.

In January 1863, the Emancipation Proclamation abolished chattel slavery, declaring that “all persons held as slaves” shall be “free forever”. But it wasn’t until two years later, on June 19, 1865, that news of the liberation finally reached the slaves of Galveston, Texas. Juneteenth, sometimes called Black Independence Day or Freedom Day, honors this real end of slavery.

In a way, the Emancipation Proclamation functioned as the first and only black American jubilee—in fact, “jubilee” is what former slaves called the post-Civil War phase. Abolition ended the whole economy of exploited labor that essentially built the modern capitalist world. But the Emancipation Proclamation went further than requiring Confederate states to simply recognize the abolition of slavery – it also called on the United States government to “maintain” the freedom of former slaves and not to do “any act or deed aimed at suppressing such persons” or any “efforts they may make for their effective freedom.” Today, contrary to the instructions of President Abraham Lincoln, the government still sanctions and facilitates the oppression of black people.

Sharecropping, convict tenancy, medical racism, mass incarceration, policing and other racist institutions have trapped black Americans in cycles of debt bondage, indentured servitude and suffering. Forced to debt-finance public goods and their own incarceration, black people bear the brunt of student, medical and criminal debt. For-profit colleges, hospitals, police departments and the prison industrial complex are all (literally) betting on their schemes to put black communities in debt. Just a decade ago, in the wake of the 2008 financial crisis, racist housing practices and job losses wiped out more than half of black wealth.

As a result, the current gap between blacks and whites in home ownership is wider than it was more than 50 years ago. From the Three-Fifths Compromise to jail and racial gerrymandering, politicians have repeatedly dismantled black political power, making black Americans’ voting rights weaker than they were in 1965, when the voting rights was adopted for the first time. The scourge of gun violence and the school-to-jail pipeline have stolen the future of black children. Black girls are disappearing at an unacceptable rate and black trans women have a life expectancy around the age required to be president: 35 years. If you are black, your risk of incarceration is almost fivefold. If you are a black woman in New York, your probability of dying in childbirth increases eight times. Unfortunately, black Americans represent 13% of the American population and 40% of those on death row.

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Who really pays with buy now, pay later companies like Klarna and Affirm: NPR https://ukdigitala.com/who-really-pays-with-buy-now-pay-later-companies-like-klarna-and-affirm-npr/ Sun, 12 Jun 2022 21:10:24 +0000 https://ukdigitala.com/who-really-pays-with-buy-now-pay-later-companies-like-klarna-and-affirm-npr/ CHERYL W THOMPSON, HOST: If you’ve shopped online recently, you might have seen an option that would let you pay some now and the rest later, interest-free. Buy now, pay later Businesses have exploded in popularity during the pandemic. Klarna, Afterpay and Affirm are just a few of them. Now Apple is getting in the […]]]>


CHERYL W THOMPSON, HOST:

If you’ve shopped online recently, you might have seen an option that would let you pay some now and the rest later, interest-free. Buy now, pay later Businesses have exploded in popularity during the pandemic. Klarna, Afterpay and Affirm are just a few of them. Now Apple is getting in the game with Pay Later. So what’s behind this trend, how does it work and who is actually paying? For that, we called Alexi Horowitz-Ghazi of Planet Money. He looked at buy-now-pay-later services in a recent episode of Planet Money. Alexis, welcome.

ALEXI HOROWITZ-GHAZI, BYLINE: Thanks for inviting me.

THOMPSON: So buy now, pay later sounds simple, but is it? Can you explain to us how these services work?

HOROWITZ-GHAZI: Of course. So buy now, pay later is a form of consumer credit – like credit cards or payday loans or other things that we’ve seen – but it’s sort of a new form. So the way it works is you’ll be shopping online or increasingly at more and more IRL stores and instead of paying the full price with a credit card or debit card or something, you will be offered a buy now, option to pay later. Usually it’s this four-part payment model, which means they’ll ask for installment payments. You’ll pay the first installment immediately using, you know, whatever bank account or credit or debit card you want. They’ll take that upfront payment, and then you pay them back in regular installments. And everything is irrelevant. It works much like an old-fashioned layaway, except with buy now, pay later, you get what you buy immediately.

THOMPSON: So how do companies make money if there’s no interest? Someone gets paid.

HOROWITZ-GHAZI: That’s true. So generally lending money is profitable due to a combination of interest and fees or perhaps collateral. There is no warranty with these things. They’re not going to repossess your Nike sneakers and try to resell them to recover, you know, your missed payments or whatever. And there is no interest, as you mentioned. And the fees, although there are late fees and there are forms of interest that kick in if you repeatedly fail to pay, the fees really aren’t that high. And that’s not the center of the business model. The way these companies make their money is that they collect fees from merchants – so the companies that sell you the goods you buy online or in person. And they charge between 4 and 9.5%, which can be much higher than what credit cards usually charge, which is between 2 and 4%.

THOMPSON: If the merchant has to pay these fees, do merchants pass these fees on to the consumer through higher prices?

HOROWITZ-GHAZI: Presumably it’s happening to some extent, but it’s still just the beginning for this model. And for the most part, it seems like the model is actually working for everyone involved, because what the buy now, pay later businesses are offering these merchants is the promise of a lot more sales. So they’re bringing in a bunch of new customers, people who maybe haven’t used credit cards or might be a little allergic to the idea of ​​using credit – so a lot of Zoomers and the millennials who grew up in the aftermath of the financial crisis and just don’t want to use credit cards – and people who, you know, might have thin credit histories or bad credit and might otherwise not not have access to things like credit cards and other forms of loans. So they’re bringing in new people, and then also there’s something in the psychology of sort of breaking down the total price into those installments – into those smaller installment prices that make people a little less hesitant to complete their order – you know, to click buy when they’re at the end of their purchase, when they’re at checkout.

THOMPSON: So you know the old adage, don’t you? – that if it sounds too good to be true, it probably is. Where can this go wrong for the consumer?

HOROWITZ-GHAZI: That’s true. So, you know, it’s – these payments are interest-free, which means it can be pretty cheap money, you know, if you meet all the terms and conditions of the loans. The problem with these is kind of the flip side of being outside the normal credit reporting system. This means it’s easier to get these buy now, pay later loans early. But that also means that each of those loans isn’t reported to any sort of central repository, which means you can take out, you know, five or six different loans from five or six different companies without any of they don’t know. That means you can get into all that payout whirlwind and get in trouble pretty quickly.

And that’s one of the things that raised red flags for, you know, consumer groups and regulators. Last fall, the House Financial Services Committee of Congress held a hearing on all of this. And right now, the Consumer Financial Protection Bureau has opened an investigation into the buy now, pay later industry. They examine the risk to consumers of overextending themselves, what types of data are collected by these companies and how they are used, and how these services fit into existing regulations for other types of credit products.

THOMPSON: Why do you think, Alexi, this practice took off during the pandemic?

HOROWITZ-GHAZI: Well, buy now, pay later companies started in places like Australia and Scandinavia, and they kind of grew over the years. They came to the United States largely around 2015, and they were kind of at that moment of critical mass right at the start of the pandemic. They were starting to get picked up by bigger and bigger companies, eventually places like Amazon and Walmart and Target, which exposed them to a lot more people. And that happened just as a lot of lockdowns were happening, and a lot of people were turning to the internet and online shopping as a form of retail therapy or just a place to find basic essentials so that they were struggling to figure out how to work from home. And that sort of hovered over this huge explosion in online shopping that’s happened over the years since the pandemic began. It has become a new and increasingly convenient way for people to shop online.

THOMPSON: Some sort of accidental explosion.

HOROWITZ-GHAZI: Yes. I would say it was good timing and a lot of trading strategies came at the right time.

THOMPSON: It was Alexi Horowitz-Ghazi, host and reporter for NPR’s Planet Money. Thank you, Alexis.

HOROWITZ-GHAZI: Thank you.

(SOUND EXTRACTION OF “MOANIN’ BY CHARLES MINGUS”)

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NPR transcripts are created in peak time by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative recording of NPR’s programming is the audio recording.

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Midlothian MP backs reporting ethnicity pay gap https://ukdigitala.com/midlothian-mp-backs-reporting-ethnicity-pay-gap/ Wed, 01 Jun 2022 05:05:55 +0000 https://ukdigitala.com/midlothian-mp-backs-reporting-ethnicity-pay-gap/ The Midlothian MP was speaking after attending a Unison campaign event on Ethnicity Pay Gap Reporting which took place in the UK Parliament. A Unison survey of NHS staff found that there were key differences between staff in Groups 1 and 2 who identified as black and those who identified as belonging to white groups, […]]]>

The Midlothian MP was speaking after attending a Unison campaign event on Ethnicity Pay Gap Reporting which took place in the UK Parliament.

A Unison survey of NHS staff found that there were key differences between staff in Groups 1 and 2 who identified as black and those who identified as belonging to white groups, with a fifth of black respondents having used payday loans vs. 9% of white respondents. . Additionally, research from the Resolution Foundation estimates that the ethnic pay gap cost 1.9million black workers £3.2billion in lost wages in 2018.

He said: “We still have a long way to go for fair pay, but an important step is to tackle the ethnic pay gap. No one should struggle with poverty wages and we know that BAME workers are more at risk, with a wage gap between BAME workers and other groups. To combat this inequality, it must be better measured and understood.

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Owen Thompson MP at the Unison event.

“Like the gender pay gap, we need to get the facts on the ethnic pay gap together to raise awareness and begin to address the issue. With the mechanisms already in place, measuring this pay gap should be a step relatively straightforward, so the UK Government’s lack of progress is baffling.The Women and Equality Committee has already done much of its homework – it published a report in February which provided evidence of the need to point out ethnic pay gaps and how any challenges could be addressed.

Mr Thompson called for more progress from the UK government in introducing the legislation needed to measure progress in tackling the gap, similar to that which is already in place for the gender pay gap. He is also writing to Midlothian Council asking them to consider adopting ethnic pay gap reporting locally.

He added: “I support the campaign led by Unison and call on the UK government to move forward, but I urge Midlothian Council not to wait. They may consider adopting the gap report local ethnic pay now.I will write to the new SNP led council to see if they will consider this option.

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Jim Beam column: Payday loan bill must be vetoed – American Press https://ukdigitala.com/jim-beam-column-payday-loan-bill-must-be-vetoed-american-press/ Sun, 29 May 2022 12:00:26 +0000 https://ukdigitala.com/jim-beam-column-payday-loan-bill-must-be-vetoed-american-press/ Louisiana lawmakers have passed a payday loan bill that will only cause more debt problems for citizens who need the financial boost they can get elsewhere.metrocreativeconnection.com From time to time, Louisiana lawmakers have come to the aid of those who make so-called payday loans. Sen. Rick Ward, R-Port Allen, is this year’s champion with Senate […]]]>

From time to time, Louisiana lawmakers have come to the aid of those who make so-called payday loans. Sen. Rick Ward, R-Port Allen, is this year’s champion with Senate Bill 381.

Legislation that was narrowly passed by both houses would cap finance charges at 100% of the original loan amount. That means lenders could charge up to $1,500 in fees on a $1,500 loan, for a total repayment of $3,000, according to The Advocate.

The senator said his “Louisiana Access to Credit Loans Act” would help state residents living on a paycheck make ends meet when faced with surprisingly large expenses.

Under current law, lenders can offer a loan of up to $350, due on the borrower’s next payday. The maximum the lender can make per loan is $55. Ward’s bill does not change that.

Ward sponsored another payday loan bill in 2018. It stated that the loan term could not be less than three months and could not exceed 12 months. The amount of the loan could not be less than $500 and could not exceed $875. The bill passed the Senate 20-17 but died in the House Commerce Committee.

I wrote in a June 3, 1999 column about a Bossier City woman who got one of these loans. She needed $200 for an emergency out-of-town trip and took out a two-week loan. The maximum they lent at that time was $201 and it had to be paid back in 14 days.

When a customer borrowed that $201, they had to leave a check for $246 to cover the principal and $15 in interest. The other $30 was for documentation and set-up costs. That’s an annual interest rate of over 580 percent.

“It was a little high,” the borrower said, “but when you need it, you need it.”

The Associated Press reported that there were about 30 payday loan companies in the state in 1992. This number grew to 455 in 1998 and 489 by the end of 1999.

Foster Campbell, a current member of the Louisiana Civil Service Commission, was a state senator in 1999. He said, “We’ve had 500 of these companies open since 1992 and none of them have failed. . I have never heard of such statistics. But the reason why they didn’t is because they deceive people by charging outrageous interest rates.

OK, back to Ward’s bill which passed the House 54-35, one vote more than the 53 needed. The Senate vote was 20 to 14, the exact majority he needed.

Republican senses Mark Abraham of Lake Charles and Mike Reese of Leesville voted for Ward’s bill. Sen. Jeremy Stine, R-Lake Charles, voted against. Sen. Heather Cloud, R-Turkey Creek, was recorded as absent.

GOP Representatives Ryan Bourriaque of Grand Lake, Dewith Carrier of Oakdale, Troy Romero of Jennings and Phillip Tarver of Lake Charles voted for the bill. Representatives Wilford Carter, D-Lake Charles; Charles Owen, R-Rosepine, and Rodney Schamerhorn, R-Hornbeck, voted against. Representative Brett Geymann, R-Moss Bluff, was recorded as an absentee.

The bill now awaits action by Governor John Bel Edwards. Lenders would make most of their money through monthly maintenance fees of up to 13% of the original loan amount.

Alex Horowitz, consumer credit researcher at The Pew Charitable Trusts, told The Advocate he had never seen such high fees. He said the bill would expose Louisiana consumers to financial harm, rather than creating an affordable loan market. Horowitz said seven of the nation’s 12 largest banks have launched or announced programs to provide small dollar loans to customers.

Kenneth Pickering twice served as Louisiana’s chief banking regulator. He said he had no idea what the maintenance fee even covers. “Once a loan is on the books, there’s nothing left to maintain,” he said. Pickering calls it more interest.

Stanley Dameron, Commissioner of the Office of Financial Institutions, said: “Some of the people applying for these loans might not qualify from your bank, but they certainly would from a credit union or finance company. “

Pelican State Credit Union’s Jessica Sharon told lawmakers that credit unions were explicitly created to help people of modest means.

Even an official from a state association that represents payday lenders said Ward’s new product was unnecessary. He said the loans are already available in Louisiana at a fraction of the cost. “It’s greed and arrogance at the highest level,” he said.

Ward’s bill is certainly a strong candidate for a gubernatorial veto.

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Propelled by (formerly) huge gains from real estate, stocks, cryptos, while “real” incomes are lagging? “Real” consumer spending increases, service spending increases https://ukdigitala.com/propelled-by-formerly-huge-gains-from-real-estate-stocks-cryptos-while-real-incomes-are-lagging-real-consumer-spending-increases-service-spending-increases/ Sat, 28 May 2022 04:30:19 +0000 https://ukdigitala.com/propelled-by-formerly-huge-gains-from-real-estate-stocks-cryptos-while-real-incomes-are-lagging-real-consumer-spending-increases-service-spending-increases/ You can see why some retail stocks don’t like the shift from goods to services. By Wolf Richter for WOLF STREET. Americans far outpaced inflation in April. “Real” spending on goods – what consumers buy at retailers, adjusted for inflation – rose during the month, but was down from last year’s miracle-stimulus peak. “Real” spending […]]]>

You can see why some retail stocks don’t like the shift from goods to services.

By Wolf Richter for WOLF STREET.

Americans far outpaced inflation in April. “Real” spending on goods – what consumers buy at retailers, adjusted for inflation – rose during the month, but was down from last year’s miracle-stimulus peak. “Real” spending on services (such as healthcare, travel, entertainment, etc., adjusted for inflation) has surged, after collapsing during the pandemic, as the shift in spending from goods towards services continues, a sign that the distorted recovery – the economy is normalizing. Spending on services is the most important, accounting for more than 60% of total consumer spending.

“Real” spending has increased, approaching the pre-pandemic trend.

Inflation-adjusted spending on goods and services jumped 0.7% in April from March, to a new record high, and rose 2.8% from April’s stimulus miracle. year, according to the Bureau of Economic Analysis today. It is now approaching the pre-pandemic trend, as the consumer economy normalizes to pre-pandemic growth rates, all adjusted for inflation:

“Real” spending on services has jumped, but there is still a long way to go.

Inflation-adjusted spending on services – health care, housing, education, airfare, lodging, rental cars, sporting and entertainment events, haircuts, repairs, etc. – jumped 0.5% in April from March and 5.9% year-on-year. year.

Actual spending on services eventually exceeded pre-pandemic levels and set a new record, after spending on discretionary services collapsed during the pandemic (such as airline tickets, discretionary health services, such as dentists and elective surgery, haircuts, etc.). It remains well below the pre-pandemic trend (green line), but is on the way to normalizing, with spending shifting from goods to services.

This surge in “real” spending on services over the past few months (+5.9% y/y) is what has boosted consumer spending, even as spending on goods has fallen from the crisis-fueled peaks. relaunched a year ago.

Spending on services is important: in April, it represented 61.4% of total consumer spending, but it is still down from the pre-pandemic average of more than 64%. This is an indication that spending on services, as it normalizes, will continue to grow at a disproportionate rate (so watch out for services CPI inflation, which is starting to eat away at everyone).

Real spending on non-durable goods is slowly normalizing to nosebleed levels.

Inflation-adjusted spending on non-durable goods – dominated by food, fuel and household supplies – edged up 0.2% for the month, but fell 0.5% from the stimulus peak -April miracle a year ago.

Even after the year-over-year decline, consumer spending on non-durable goods remains at nosebleed levels, up 12% from April 2019, and well above the pre-trend. -pandemic (green line). But it is gradually normalizing and returning to the pre-pandemic trend:

Real Spending on Durable Goods Suddenly Jumps Month Over Month.

So just to create another surprise about “exploited” US consumers or whatever, inflation-adjusted spending on durable goods jumped 2.3% for the month, just when you thought consumers had bought everything they needed, and were going to back off.

Compared to April’s miracle stimulus peak of last year, real spending on durable goods has fallen 6.5%. Spending remains at nosebleed levels, up 29% from April 2019, and continues to contribute to shortages and price spikes in some of these products, as well as the massive trade deficit, as many of these products are manufactured in other countries or contain components that are manufactured in other countries.

But you can see the uneven normalization, the regression to the pre-pandemic mean:

“Real” income below pre-pandemic trend.

Personal income adjusted for inflation from all sources fell 3.5% from April a year ago, when stimulus money was still coming in, but rose slightly from March (purple). This includes income from wages and salaries, dividends, interest, rentals, farms, businesses, and government transfer payments (stimulus, social security, unemployment, welfare, etc.), but does not include not capital gains. Late last year, as inflation rose, real income fell below the pre-pandemic trend and stayed there. It only increased by 6.0% compared to April 2019.

Inflation adjusted income without transfer payments rose 2.0% from a year ago and 0.3% in April from March (red line). It fell below the pre-pandemic trend at the start of the pandemic. After a partial recovery, it has lost further ground since the end of last year due to the surge in inflation and has remained essentially stable since November.

“Real” disposable income per capita looks worse.

The income data above was for aggregate income, for all consumers combined, where income growth is also fueled by rising employment and population growth.

Here is the level of “real” disposable income per capita – that is, after-tax per capita income from all sources, which was flat for the month and down 6.4% from a year ago. year, and up a tiny 1.8% from April 2019. And that’s well below pre-pandemic trends:

The substantial increase in inflation-adjusted spending and the bleak picture of inflation-adjusted income (which does not include capital gains) show that consumers – not all but enough to move the needle – are still flush with the funds of the gazillion stimulus programs and with the money they can extract from soaring house, stock and crypto prices, where consumers have earned trillions of dollars in total, some of which have already been spent, and some of which have disappeared in recent sales, and some of which they still sit on and will continue to spend.

But consumer borrowing to spend, well… not so hot.

Not adjusted for inflation: Credit card balances, excluding other revolving loans such as personal loans, fell to $840 billion in the first quarter, compared to the fourth quarter, still below the first quarter of 2020 and the first quarter of 2019, and back to where they were in the first quarter of 2008, despite 13 years of population growth and 37% CPI inflation (red line).

Other consumer loans, such as personal loans and payday loans, at $450 billion, were also below pre-financial crisis highs, despite 13 years of population growth and 37% inflation. CPI (green line).

For my in-depth discussion of consumer borrowing across all categories, delinquencies, foreclosures, third-party collections, and bankruptcies, read… Consumers Can Handle Fed Tightening: Their Debts, Delinquencies, Foreclosures, Collections and bankruptcies

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Spring Finance raises the second charge and releases an interest-only BTL product https://ukdigitala.com/spring-finance-raises-the-second-charge-and-releases-an-interest-only-btl-product/ Thu, 26 May 2022 13:53:25 +0000 https://ukdigitala.com/spring-finance-raises-the-second-charge-and-releases-an-interest-only-btl-product/ Specialist lender Spring Finance has relaunched its second mortgage proposal and launched an interest-only buy-to-let (BTL) product. The lender released its “prestige range”, to complement its existing products, focused on mid-prime borrowers. Prestige product rates start from 60% loan-to-value (LTV) and go up to 80% LTV, available on three and five year fixed […]]]>

Specialist lender Spring Finance has relaunched its second mortgage proposal and launched an interest-only buy-to-let (BTL) product.

The lender released its “prestige range”, to complement its existing products, focused on mid-prime borrowers.

Prestige product rates start from 60% loan-to-value (LTV) and go up to 80% LTV, available on three and five year fixed rates.

Rates start at 7.65% for one demerit and 8.05% for two demerits.

Demerits include things like missed payments, county court judgments and defaults, unsecured credit, and payday loans.

Second BTL load

The second BTL charge is for homeowners who want to benefit from the equity in their property, and all come with an interest-only option up to 75% LTV.

It varies from 60 to 75% LTV with rates without demerit from 8.25% and 8.55% for a demerit.

Graeme Wade (photo)Sales Manager for Secured Loans at Spring Finance, said the second fee market is increasing month by month and processing times are at the “front line of service levels.”

He added that the lender had made several “positive improvements” to its underwriting system, including its demerit-based points system.

“These changes will significantly reduce the time it takes to complete each loan. Our goal has always been to improve the product offering to our introducers and this new product launch does just that,” he said.

Andrew Bloom, owner of Spring Finance, said: “Spring has a reputation for providing an excellent product offering to applicants from different backgrounds. These new products, supported by the simplification of our underwriting process, will further increase the value we can add to our brokers.

“This product relaunch, along with our recently launched transition proposal, demonstrates our continued commitment to the specialty finance market.”

Spring Finance was launched in 2011 as a long-term second lien lender, then entered the bridge and development finance market earlier this year to offer first and second lien loans on a regulated and unregulated basis. .

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Coralie Chun Matayoshi Explains the Effects of Sea Level Rise on Hawaii Homes https://ukdigitala.com/coralie-chun-matayoshi-explains-the-effects-of-sea-level-rise-on-hawaii-homes/ Mon, 23 May 2022 22:50:55 +0000 https://ukdigitala.com/coralie-chun-matayoshi-explains-the-effects-of-sea-level-rise-on-hawaii-homes/ Honolulu (KHON2) – Coralie Chun Matayoshi explains the effects of sea level rise on the local real estate sector in KHON2’s latest podcast episode titled “What’s The Law”. According to scientists at the University of Hawaii, Oahu could lose 40% of its beaches over the next 20 years, due to sea level rise accelerated by […]]]>

Honolulu (KHON2) – Coralie Chun Matayoshi explains the effects of sea level rise on the local real estate sector in KHON2’s latest podcast episode titled “What’s The Law”.

According to scientists at the University of Hawaii, Oahu could lose 40% of its beaches over the next 20 years, due to sea level rise accelerated by climate change.

“Sea level rise in itself is not inherently bad for beaches or the cause of beach loss. Instead, it is how we have responded to it, allowing seawalls, sand burritos and other forms of artificial hardening of the shoreline.When the waves hit the walls and sandbags along the beaches, the sand is carried back into the ocean and the beach is eventually washed away. these man-made structures, our beaches could adapt to rising sea levels by migrating inland as the waves get higher and higher,” says Coralie Chun Matayoshi, producer and host of What’s the Law by KHON2.

According to Chun Matayoshi, the public trust doctrine states that beaches belong to Hawaii residents and that the government has a duty to protect natural resources such as beaches for future generations.

Chun Matayoshi says, “For years, the government allowed landowners to apply for waivers to build seawalls, but a law passed in 2020 now prohibits the construction of seawalls and other coastal reinforcement projects. Private owners can still apply for emergency permits to install temporary protections like the sand burrito, but the state must enforce the 3-year limit and not allow them to stay indefinitely. And last year, the legislature passed a bill requiring sellers to disclose to buyers any threat of sea level rise – the law went into effect on May 1.

In addition to the effects of sea level rise, the latest podcast episode of “What’s The Law,” explains why the state legislature chose to get rid of payday loans.

“Last year, the Legislature got rid of payday loans in favor of installment loans that are repaid over time in smaller amounts. The maximum loan amount is $1,500 with a maximum interest rate of 36% and up to $35/month in fees. Lenders must be licensed and follow certain rules, and the new law came into effect at the beginning of this year,” says Chun Matayoshi.

Viewers can listen to “What’s The Law” every Monday via KHON2’s official website.

KHON2 Presents “What’s the Law”

https://www.khon2.com/whats-the-law/

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Peaky Blinders fan warns of ‘despicable’ £1,000 scam https://ukdigitala.com/peaky-blinders-fan-warns-of-despicable-1000-scam/ Sun, 22 May 2022 12:53:32 +0000 https://ukdigitala.com/peaky-blinders-fan-warns-of-despicable-1000-scam/ A ‘despicable’ scammer is currently targeting Peaky Blinders fans by offering an exclusive meet and greet with the show’s cast for the staggering sum of £1,000. Yasemin Kaptan runs a fan page dedicated to Cilian Murphy who plays Tommy and was among those who received the fake initiation. The 46-year-old Londoner said she immediately thought […]]]>

A ‘despicable’ scammer is currently targeting Peaky Blinders fans by offering an exclusive meet and greet with the show’s cast for the staggering sum of £1,000.

Yasemin Kaptan runs a fan page dedicated to Cilian Murphy who plays Tommy and was among those who received the fake initiation. The 46-year-old Londoner said she immediately thought ‘it didn’t look good’ and is now keen to warn other fans of the scam.

In the message sent as actor Paul Anderson, Yasemin was offered dinner dates and ‘stunning’ photographs in return for £1,000. The real Paul Anderson plays Arthur Shelby Jr in the BBC crime drama series set in Birmingham.

Read more:Dad disgusted with payday loan company compensation

Yasemin told the Sunday Mirror: “As soon as I saw the post I contacted the official Peaky Blinders Instagram page and they confirmed it was a scam. wouldn’t ask for money.

“I would hate to think of Peaky Blinders fans getting tricked and paying. I think it’s despicable what he’s doing. I’ve reached out to the real Paul Anderson to tell him what’s going on. It’s not well, it’s a scam. I don’t want people joining a fan page to get scammed.”



Instagram post offering meetings with Peaky Blinders stars for £1,000

According to Yasemin, the scammer entices fans by requesting private chats and asking fans for their email addresses before offering the “private encounter” in exchange for a huge sum of money. The message reads: “Greetings from the entire management team. The private meet and greet gives you the opportunity to take amazing photos, autographs, a dinner date, and also introduce the entire management.

“The cost of the meeting is £1,000. Money is not the issue, it is the business rule to ensure our meetings are properly and properly run, our solicitor will put payment in writing immediately. is made and could be a refundable payment if Mr. Paul wishes.

“Let us know if you make the payment now, we can send the details. Thank you and stay safe.”

The official Peaky Blinders website warned fans of the scam after Yasemin contacted them and said in a statement, “This is definitely spam, don’t donate money.”

The BBC did not respond to requests for comment.

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