Saturday, September 02, 2006

Heavy lobbying of the interest of financial corporations not only affects the morals of our nation's legislators receiving the treatment, but also the livelihoods of the people affected by the subsequent legislation. Campaign finance reform hits both incumbent and challenger candidates, but saves the pay-for-play legislation big money contributors demand.

Our very own soldiers in the US military are victims of recent bankruptcy legislation pushed heavily by financial companies. According to a USA Today article, a Pentagon report shows lenders positioned around military bases typically charge $15 to $25 per $100 loan for two weeks, and most loans are extended for several weeks. The report says the average loan is $350 and has an annual interest rate of 390% to 780%. The average borrower, it says, pays back $834 for a $339 loan. The report cites estimates 13% to 19% of servicemembers — at least 175,000 people — took out high-interest, short-term loans last year. It said nine out of 10 loans go to borrowers who take out five or more over a year.

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