Part Three of a series.
Let’s return to our metaphorical street corner from the previous post, because to understand the current economic crisis it might help to consider how many have been run down at that economic intersection, as conservatism stands by and watches. There’s another lending crisis that’s gone on for a while now, making far fewer headlines than the subprime crisis, the credit crunch, or the housing slump—because of the people it affected. But as those crises intensify and affect more and more people, this one may become even bigger news than it has been so far.
Back in December 2006, when the subprime crisis was just getting started, The New York Times ran a story about short-term “payday” loans and their devastating impact on the poor, who get caught in a never ending cycle of debt.