Todays EU Personal Loans

This is Richard Wolff from Democracy at
Work I want to talk briefly with you about a item in the world of credit
that’s been getting a lot of attention recently because of the mild but at
least partially real crackdown on subprime lending after the global
capitalist crash in 2008 the hustlers in the credit business had to find a new
way to get around the even mild regulations and limits put on certain
kinds of lending and they found it as they always do the new explosive kind of
lending is personal loans arranged usually through the internet they are at
least for the time being relatively less regulated and controlled meanwhile the
mass of middle-class Americans is more and more in trouble with the incomes
they get insufficient for the costs of education medical care etc and so people
in trouble turn to these easy to get internet personal loans and I want to
talk to you about it not about the scandal and the bubble that’s building
we’ve been there before this is just another rerun the fancy big center banks
lend money to intermediate finance companies who then turn around and give
you that wonderful sounding loan until you look real closely at the fine print
and discover that the interest rates are in trouble
double or triple figures wild interest rates far beyond what is legal in the
other regulated credit markets I don’t want to talk to you about that scandal
because you know it I want to talk to you about what it means economically
when we have money lent at high interest rates to middle-income working-class
people what that debt does is it redistributes
wealth from the poor from the middle to the rich it’s important that we stop
only thinking there’s wealth redistribution when people like Bernie
Sanders or a little bit Elizabeth Warren talk about taxing the rich and the
Conservatives all yell wealth redistribution I want you to understand
that wealth is being redistributed all the time the other way from middle and
low income people to the rich and nothing does that more successfully and
regularly than personal loans of the sort that are now offered in huge
amounts over the internet here’s how it works
the money provided to the internet lending companies comes from the richest
people and institutions in the country wealthy people who buy shares of these
finance companies big banks who lend money to these finance companies these
are the rich these other institutions owned and serving the rich and here’s
what they do they come to strapped middle-class and working-class people
and offer them alone say at 20 40 60 80 percent so let’s be clear what’s
happening the finance company gives you say a
thousand dollars and at the end of the year say if it’s a one-year loan which
some of them are you have to pay back the thousand dollars you got and the
interest which could be anywhere from two hundred to six hundred dollars
depending and sometimes higher so let’s be very clear the rich people give you a
thousand dollars at the beginning of the year and at the end
the year you give them back 1,200 to 1,600 dollars that is a redistribution
of wealth you give the rich more than they give you and that redistributes the
wealth at the end of the year you have less wealth than you did at the
beginning and the rich have more so if wealth redistribution is something that
concerns you it ought to make you an opponent of the kinds of personal loans
and other kinds of loans that are just hidden forms of redistributing wealth
from the bottom in the middle to those at the top
footnote back in the Middle Ages feudalism in Europe where the dominant
religious institution was the Roman Catholic Church that Church prohibited
usury that was the word then for charging interest on the loan and here
was the church’s reasoning a person who needs a loan is a person in need
otherwise he or she wouldn’t seek a loan a person who’s wealthy and in a position
to make a loan doesn’t have the same need which is why they’re in the lender
position rather the borrower position and it is against Roman Catholic
teaching the clerics of that time said for a person who doesn’t have need to
take advantage of the person who does by demanding back more than you give it is
good Christian behavior said the church to help a person in me it is blasphemous
to demand of that needy person that they redistribute wealth to the rich who
don’t need it what an interesting idea hundreds of years ago and how pertinent
it is to the wealth redistribution that is hidden by the everyday
lending to consumers

35 comments on “Todays EU Personal Loans”

  1. Patrick Milewski says:

    This is why financiers should be regarded as being worse than lawyers and police officers.

  2. Mike B says:

    The vig is always 10%

  3. Cotina Spann says:

    Thank you Mr.Wolff for putting this info out here for us. I get these offers on the regular with ridiculous origination fees plus exorbitant interest. This is just legalized(barely) loan sharking.
    At least a loan shark is honest about how their going to screw you😒

  4. Miroslav Sulc says:

    The Bible and also The Quaran consider usury enslavement and exploitation.

  5. somastic69 says:

    Personal loans should be abolished because they can be used to buy food to prevent oneself from starving to death.

  6. Jahmela Davis says:

    Thank you Professor Wolff, I love your videos.Thank you.

  7. Victor Meza says:

    Thanks for this breakdown Dr. Wolff. You lay out very clearly how the wealthy are bamboozeling the rest of us at every turn they can.

  8. Tom Aytimur says:

    To charge interest, of any amount, is a blasphemy in Islam as well.

  9. NathansHVAC says:

    To bad the leftist countries have the highest personal debt.

  10. Matt Pfarr says:

    Lending tree must have stopped by to give you a thumbs down, keep up the good work dr. Wolff

  11. Fruit4me says:

    Bernie 2020, no other choice!PK

  12. lydia maniatis says:

    Is "loan sharking" still illegal? Seems like it's been normalized.

  13. nouman shahnawaz says:

    I wonder when they will knock on there doors to collect interest not principal with uzzi guns made in Israel

  14. J Rhoads says:

    Great point! If a man cannot walk, you help him without fee until he is able to but never carry him for a fee if he is able to walk himself. In other words, give the needy the tools, knowledge and resources they need in order to sustain themselves (i.e. return on investment) but never do this for them. Charging interest/fees is a way of justifying helping someone that doesn't need it which is absurd in itself yet charging fees to someone that needs help is just evil.

  15. Perry Escobar says:

    I agree.

  16. Mirsad Seferovic says:

    It's always been a basic of Islamic moral teaching forbidding the interest!

  17. Jonn Mero says:

    The classical case is of course the people who borrow at these rates to buy things they do not need. But that is more here in socialist Norway. The impression is that in USA for low income/poor people it is to get money to survive. Sad, eh?

  18. Edward Yang says:

    Great video, Prof. Wolff. For one thing, I've never been able to comprehend why the government would lend money to big financial corps with near zero interest rates, often eventually bailing then out altogether, while the owners of those corps get richer by lending that very money to the middle class with high interest rates.

  19. Zach Johnson says:

    Mr. Wolff we wanted to reach out to you regarding a TV inquiry & other opportunities. Please send us an email to [email protected] for more details. Hope to hear from you!

  20. niggablaster says:

    I liked the gas oven noises in the beginning

  21. elbowsanchez says:

    Orgasmic Easing.

  22. elbowsanchez says:

    Redistribution. Like the FEDeral Reserve making 6% interest on all the debt it creates out of thin air. A debt that will never be paid, except you better be sure they are getting their monies at the banking cabal. Top bankers of this cabal and their minions are truly the evil of the world.

  23. Clare Stucki says:

    Why would anybody be dumb enough to borrow money to pay for things they can't afford to pay for from their income? Borrowing money to pay for current living expenses does not make your richer, it makes you poorer! However, Wolff saying the rich ought to loan money to the poor interest-free, is just a case of him not living in the real world, which is not at all uncommon for him to do.

  24. msjoanofthearc says:

    Richard you are the greatest! Tell it like it is!!!

  25. Wayne Harrison says:

    We are seeing here in Australia these payday type loans…………………which are basically "DEBT TRAPS"!!!!

  26. Bob Jones says:

    No matter how you represent it, it is slavery. The government uses its funny money to enslave people….

  27. Joy Anna Radcliffe says:

    Wolf is correct. Wealth has been distributed upward to the super rich for 40 years. Has the middle class prospered under this economic system? Certainly, if any, by 12%. The super wealthy, by well over 480%

  28. Helios says:

    He described the problem of the entire engine of U.S. capitalism. It runs off of credit / debt.

  29. Gehres Weed says:

    Never be a borrower or lender.

  30. Bang Bang says:

    The Africans want their money from CFA, EU has been stealing from Africans since the Berlin Conference in 1884

  31. locolo Kuromanhs says:

    Thank you!


    Within feudal relations a farmer was of no need of a loan, because he ddid not use money. With rising trade in the 14/15th century the NOBILITY was in need of money for war and traders for trade. Rich traders formed the first banks and constructed contracts of risk sharing. The Christian rejection of usury was from Roman times. PEOPLE WHO COULD NOT PAY WERE ENSLAVED. YET, THIS WAS REJECTED BY JEZUS AND BYZANTINE LAW. The monarchs had the liberty to stop paying their debt. WITHIN THE 19TH CENTURY THE BOURGEOIS STARTED LENDING IN NEED OF MONEY. IT WAS VERY RISKY TO LEAN OUT MONEY, BECAUSE ALL KIND OF REASONS WERE ACCEPTED TO STOP PAYING. The consequence was that there was a shortage of money and only the rich (Jews?) started new bussineses. In the US there is a combined system of wage-suppression and easy lending out with creditcards….. within the EU rates and rights of lenders are restricted. SO, THE ACCUMULATION OF PRIVATE DEBT IS A TYPICAL US-PROBLEM……..

  33. Anthony Vaught says:

    Yes! Thank you. Government is trying to 'solve' issues all wrong. Attacking the wealthy will just make the wealthy attack the poor more. Happens in many areas of life. The teachings of Jesus Christ and God's commands in bible should be used in policies. God is amazing.

  34. Augustuvi Primce dea.V. says:

    China had a huge internet small loans/pay-day-loan problem 5 years ago, many committed suicide or human trafficking

  35. amabdall says:

    Meanwhile in Ohio, house passes bill allowing students answers to be scientifically wrong due to religious belief. Instead of protecting needy people, these idiots have the time to waste on bullcrap Bill

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