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Photo Sharing and Video Hosting at Photobucket

Photo Sharing and Video Hosting at Photobucket

Photo Sharing and Video Hosting at Photobucket

Photo Sharing and Video Hosting at Photobucket

Photo Sharing and Video Hosting at Photobucket

Friday, February 15, 2008

Is 780% Too High a Rate to Pay?

Former Virginia Governor (and U.S. Senate candidate) Mark Warner approved the legislation allowing so-called "Pay Day Loans" in Virginia. These loans allow the charging of up to 780% APR interest. During a period where Warner's Democrat colleagues are advocating the breaking of perfectly legal mortgage contracts by calling them "predatory" I can only wonder what Warner's response is.

Let's not forget, Mark Warner is a pretty smart guy with an estimated net worth of over $200 million. The individuals who are victimized by these predatory "Pay Day Loans" do not have the benefit of Warner's education, experience, or business savvy.

Before any of my conservative brothers and sisters (or faux-conservative Warnerites) begin criticizing my views as anti-market, consider this. Do we allow the market to simply place drugs on the market or does the government require testing and approval? Do we allow parties to market securities without any state or federal regulation? Do we allow gambling that is not state sanctioned? Do we allow the selling of heroin or cocaine on our streets?

No!

One of the duties of government is to protect its citizens. While liberals wish to go to the far side and deliver a nanny state, conservatives understand that there are limits (albeit few) to the benefits and efficiency of free markets. "Pay Day Loans" are one such example.

It's a shame that the supposedly "enlightened" soul of Mark Warner doesn't understand this.

cross posted at Delmarva Dealings

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Comments on "Is 780% Too High a Rate to Pay?"

 

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