RE: Usury laws Re: General Debate

[Kush Khatri <free_voice@yahoo.com>]

Charudatt <charu@iced.com> wrote:

I would agree with your statement "People are desperate to supply
loans to people" in a limited US context where baby boomers are
pumping huge amounts of savings capital into the market, and banks and
money managers are looking for ways to generate returns. This might
explain why I'm bombarded with offers for credit cards every week. 
Your statement ought to read "People are desperate to supply loans to
people with a good credit
rating".

Kush's comments:
True it is the buyers market these days.  I agree, despite the
desperation when it actually comes to lending money the lenders do
look into people's credit history.  In fact, it is impossible to get a
loan at the optimum interest rate without that.

Apart from the baby boomers factor, you neglected to mention another
important factor: the "surpulus" that the Federal Government is
currently enjoying in its demand for money.  That alone has freed up
as much as 300 billion dollars (my guess based on what the federal
government used to borrow) -- directly contributing to the low
interest situation in the US today.

This year(Fiscal Year starting October 1) the US Federal Budget alone
is expected to reach 3 Trillion -- compare that to the Indian budget
of 64 billion!  That alone should send a message to the people as to
the urgency of the situation. (Please keep in mind that although the
Federal Budget contains grants to state governments, the state
governments have their own separate budgets)

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