Wednesday, April 19, 2023
Equity Skimming, Predatory Loans, & Homelessness
The exploitation of the working poor by wealthy individuals is a serious issue that needs to be addressed. While many people may think only Billionaires are guilty of such practices, this is not necessarily true. A prime example of this type of exploitation comes in the form of predatory lending. This occurs when lenders target individuals with lower incomes and charge them much higher interest rates than they would typically offer someone with better credit or a larger income. Loansharking is another form of financial exploitation. In this instance, lenders will lend large sums of money to small business owners that have no hope of paying it back on time or at all. They do so knowing full well that if their borrower cannot make payments, they can seize their assets and sell them off for a profit. Equity skimming is also becoming increasingly common, particularly in the wake of the 2008 housing crisis. In this case, wealthy individuals will buy properties at a discounted rate from desperate homeowners who are facing foreclosure and then rent or resell them for a much higher price than what was originally paid. This practice leaves people vulnerable to homelessness as they no longer have any equity in their homes and often can't afford to purchase new ones. It's clear that predatory lending, loan-sharking, and equity skimming are all forms of exploitation that must be addressed if we wish to stop wealthy individuals from exploiting the working poor. Not only do these practices prevent deserving people from achieving financial stability, but they also contribute to the widening of the income gap and further entrench poverty. It's time for governments, lenders, and individuals alike to work together to create a fairer economic system that doesn't disproportionately benefit those at the top.