Post #4095189
2026-07-25 10:47 UTC
The first phenomenon creates vast credit bubbles, the second one pops them.
This leaves would-be usurers on an endless quest for new ways to lend money at a premium to poor people while reducing their own risk. You don't need technology to do this - all you need is a captive audience of broke people whom other lenders won't touch.
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Replies (1)
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@pluralistic@mamot.fr 2026-07-25 10:48
When the US government adopted the racist practice of "redlining" (denying government-backed loans to Black borrowers), they created a market for predatory pseudo-mortgages called "contract buying." Contract buying is like a mortgage, but without the equity: miss a payment and you get evicted, and you aren't entitled to any of the sale price of the house, even if it was 99.99% paid off when you got kicked out. 18/