The Observation Deck

There is legislation to cap the interest these payday loan places end up collecting.

some reports say it adds up to over 300 percent annual interest.

but these places are on nearly every block and every shopping center. The prevailing economic theory says they would have to compete with each other by offering lower interest. this is not a reality.

The problem is compounded by another theoretical competitor. If you are like most Americans you get several offers a week for credit cards. you even run into vendor stands offering you credit cards. it is hard to walk into a bank without reading some offer for a credit card. the credit cards usually offer less than 30 percent annual interest rates.

Therefore, prevailing economic theory must be destroyed.

ryan costa wrote:Therefore, prevailing economic theory must be destroyed.

So are you for more regulation as opposed to the “free market will work itself outâ€

I am against bailing out the lenders. The lenders made "investments" they should not have reasonably expected to see expected returns on.

The top guys at all these big banks being bailed out by the feds don't seem to be contributing much. They aren't busting themselves down to 50 grand a year.