Jeff Grabmeier reports on some interesting research from Ohio State’s Stephanie Moulton, which shows that borrowers with low incomes or bad credit are significantly less likely to default on their loans if they borrow from a local bank than if they borrow from a distant bank or mortgage company.
Moulton tells Grabmeier that “local banks seem to offer some protection to homebuyers, particularly those with low incomes who may be seen as risky borrowers”, and comes up with a few hypotheses as to why this might be:
Many mortgage brokers base their decisions on whether to offer a mortgage on one or more key numbers, such as a credit score. In other words, if your credit score is above a certain level, and you meet other criteria, the broker will offer the loan. The same may be true of large, non-local banks, Moulton said.
But local lenders may place more weight on other factors, such as how long you’ve been working for your current employer, and whether you make regular deposits in a savings account…
In addition, local bankers are more likely to have a continuing relationship with the borrower, through the checking and savings accounts held by the customer.
“If there’s a relationship, the borrower may feel more obligated to make their payments. And the banks may provide more education and information to the borrowers, equipping them to be better homeowners,” she said.
I think the relationship point here is absolutely key. With bank loans, the give-and-take is all very asymmetrical: the borrower gets a large sum of money up front, and then does nothing but send money back to the lender from then on in. The incentive to stop paying the money back is clear.
If the borrower has a personal relationship with the lender, however, things change — and not just because of formal education and information. Making mortgage or other loan payments is a painful chore, most of the time. But for some people it can be a happy, joyful thing: I’m buying my house! I’m getting out of debt! And it’s a lot easier to think that way if you have a human local banker who is helping you reach your goals.
When reading Grabmeier’s piece, I couldn’t help but be reminded of Maha Atal’s post about Andhra Pradesh. The problem in AP, she says, and in India generally, “is not profit or size; it’s geography”:
When Yunus first started making loans to the local poor, he was pushing back against an argument from banks that people in poverty weren’t credit-worthy, that they couldn’t understand the concept of credit and therefore couldn’t be expected to pay. There was something to that argument: credit is a learned thing, both a legal concept and a social one that emerged in the developed world over centuries, whose core component is the creation of a sense of obligation between two perfect strangers.
Dr. Yunus did not actually challenge this notion; rather he sought to get around it, by demonstrating that loans did not have to be made between perfect strangers. The essence of microlending as he devised it was not simply that the loans were small, or that the rates were friendly, or even that the group system created a culture of pressure to repay the lender. It was that the groups were self-formed, that the members already knew each other, and that the obligation to repay was constructed as an obligation to one’s peers. He did not teach them to be obligated to the creditor; he saw that they were obligated to one another…
In India, the community component of micro-lending has never been taken seriously. Both the MFIs and the SHGs rely on the national financial system, not on local capital, to get started. Neither is able to operate as a borrower-owned community bank. And so both structures take as an assumption that grouping borrowers together can lead them to feel obligated to a third party, even though that is precisely the opposite of what the Bangladesh success story showed. As the sector has expanded, the distance–physical and therefore social–between lender and borrower has expanded it with it, and it is that distance, not the size of the industry itself, that is the problem.
A loan from a friend, or someone we know, is always qualitatively different from a loan from a faceless corporation. If you’re a college-educated sophisticate moving fungible funds from one account to another, it’s easy to forget this, but come down to my local credit union on check day, when a lot of local residents receive their Social Security checks. All of them have the option of having the money paid automatically into their account, but there’s always a long line of people queuing up to deposit their check in person, with a human teller. And it stands to reason that, ceteris paribus, the people who do that are more likely to pay back one of our loans than someone hundreds of miles away who just gets a printed-out statement in the mail each month.
The spectrum from India’s poor to America’s rich is a continuous one, and U.S. subprime borrowers are somewhere in the middle when it comes to financial sophistication and trust in institutions. Similarly, successful subprime lenders tend to be pretty high-touch institutions, which take great pains to position themselves both geographically and in terms of marketing materials as close as possible to those they would lend to. The average payday lender is much more likely to know any given borrower’s name, when they walk in to the branch, than any banker — and that gives the payday lender an advantage when it comes to the borrower’s willingness to repay the loan.
The problem, of course, is that opening up local branches is a strategy which is expensive, hard to scale, and difficult to implement overnight. But it certainly helps explain why lending strategies enforced in a top-down manner from distant executives with spreadsheets can end up underperforming.
Even in times of severe budgetary crisis, WMATA still has to advertise itself. And what better way to reverse the public's negative opinion about random bag searches, constant maintenance, annoying talking buses, broken escalators, confusing fare structures and so forth than with some state of the art "guerrilla" marketing! Kytja Weir reports that the agency is going to try and get your attention the same way your local emo band does.
The transit system brought on Williams Whittle, based in Alexandria, earlier this month to help market the agency using traditional advertising but also possibly "guerrilla marketing" and "street teams," said Metro spokesman Reggie Woodruff."Williams Whittle will assist us as we continue to explore ways to increase revenue and off-peak ridership and to more effectively promote Metro and the improvements that we are making," he wrote in an e-mail.
That could mean "unconventional marketing" that directly engages potential riders, he explained. He could not provide any examples of what such direct marketing might look like, though.
What, was Evan Hensleigh not available? WMATA will be using about two-thirds of its $1.8 million advertising budget on Williams Whittle's services. For the sake of public transportation, I sure hope that Williams Whittle has some better "unconventional" ideas than those Second Life animations which Metro rolls out every now and then -- based on the company's website, it looks like they've got a ton of experience creating slightly annoying, yet oft-imitated television ads.
robert shumake detroit
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
CNN's John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite
CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...
Moore: EA not backing away from Tiger <b>News</b> - Page 1 | Eurogamer.net
Read our news of Moore: EA not backing away from Tiger.
robert shumake detroit
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
CNN's John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite
CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...
Moore: EA not backing away from Tiger <b>News</b> - Page 1 | Eurogamer.net
Read our news of Moore: EA not backing away from Tiger.
robert shumake detroit
Jeff Grabmeier reports on some interesting research from Ohio State’s Stephanie Moulton, which shows that borrowers with low incomes or bad credit are significantly less likely to default on their loans if they borrow from a local bank than if they borrow from a distant bank or mortgage company.
Moulton tells Grabmeier that “local banks seem to offer some protection to homebuyers, particularly those with low incomes who may be seen as risky borrowers”, and comes up with a few hypotheses as to why this might be:
Many mortgage brokers base their decisions on whether to offer a mortgage on one or more key numbers, such as a credit score. In other words, if your credit score is above a certain level, and you meet other criteria, the broker will offer the loan. The same may be true of large, non-local banks, Moulton said.
But local lenders may place more weight on other factors, such as how long you’ve been working for your current employer, and whether you make regular deposits in a savings account…
In addition, local bankers are more likely to have a continuing relationship with the borrower, through the checking and savings accounts held by the customer.
“If there’s a relationship, the borrower may feel more obligated to make their payments. And the banks may provide more education and information to the borrowers, equipping them to be better homeowners,” she said.
I think the relationship point here is absolutely key. With bank loans, the give-and-take is all very asymmetrical: the borrower gets a large sum of money up front, and then does nothing but send money back to the lender from then on in. The incentive to stop paying the money back is clear.
If the borrower has a personal relationship with the lender, however, things change — and not just because of formal education and information. Making mortgage or other loan payments is a painful chore, most of the time. But for some people it can be a happy, joyful thing: I’m buying my house! I’m getting out of debt! And it’s a lot easier to think that way if you have a human local banker who is helping you reach your goals.
When reading Grabmeier’s piece, I couldn’t help but be reminded of Maha Atal’s post about Andhra Pradesh. The problem in AP, she says, and in India generally, “is not profit or size; it’s geography”:
When Yunus first started making loans to the local poor, he was pushing back against an argument from banks that people in poverty weren’t credit-worthy, that they couldn’t understand the concept of credit and therefore couldn’t be expected to pay. There was something to that argument: credit is a learned thing, both a legal concept and a social one that emerged in the developed world over centuries, whose core component is the creation of a sense of obligation between two perfect strangers.
Dr. Yunus did not actually challenge this notion; rather he sought to get around it, by demonstrating that loans did not have to be made between perfect strangers. The essence of microlending as he devised it was not simply that the loans were small, or that the rates were friendly, or even that the group system created a culture of pressure to repay the lender. It was that the groups were self-formed, that the members already knew each other, and that the obligation to repay was constructed as an obligation to one’s peers. He did not teach them to be obligated to the creditor; he saw that they were obligated to one another…
In India, the community component of micro-lending has never been taken seriously. Both the MFIs and the SHGs rely on the national financial system, not on local capital, to get started. Neither is able to operate as a borrower-owned community bank. And so both structures take as an assumption that grouping borrowers together can lead them to feel obligated to a third party, even though that is precisely the opposite of what the Bangladesh success story showed. As the sector has expanded, the distance–physical and therefore social–between lender and borrower has expanded it with it, and it is that distance, not the size of the industry itself, that is the problem.
A loan from a friend, or someone we know, is always qualitatively different from a loan from a faceless corporation. If you’re a college-educated sophisticate moving fungible funds from one account to another, it’s easy to forget this, but come down to my local credit union on check day, when a lot of local residents receive their Social Security checks. All of them have the option of having the money paid automatically into their account, but there’s always a long line of people queuing up to deposit their check in person, with a human teller. And it stands to reason that, ceteris paribus, the people who do that are more likely to pay back one of our loans than someone hundreds of miles away who just gets a printed-out statement in the mail each month.
The spectrum from India’s poor to America’s rich is a continuous one, and U.S. subprime borrowers are somewhere in the middle when it comes to financial sophistication and trust in institutions. Similarly, successful subprime lenders tend to be pretty high-touch institutions, which take great pains to position themselves both geographically and in terms of marketing materials as close as possible to those they would lend to. The average payday lender is much more likely to know any given borrower’s name, when they walk in to the branch, than any banker — and that gives the payday lender an advantage when it comes to the borrower’s willingness to repay the loan.
The problem, of course, is that opening up local branches is a strategy which is expensive, hard to scale, and difficult to implement overnight. But it certainly helps explain why lending strategies enforced in a top-down manner from distant executives with spreadsheets can end up underperforming.
Even in times of severe budgetary crisis, WMATA still has to advertise itself. And what better way to reverse the public's negative opinion about random bag searches, constant maintenance, annoying talking buses, broken escalators, confusing fare structures and so forth than with some state of the art "guerrilla" marketing! Kytja Weir reports that the agency is going to try and get your attention the same way your local emo band does.
The transit system brought on Williams Whittle, based in Alexandria, earlier this month to help market the agency using traditional advertising but also possibly "guerrilla marketing" and "street teams," said Metro spokesman Reggie Woodruff."Williams Whittle will assist us as we continue to explore ways to increase revenue and off-peak ridership and to more effectively promote Metro and the improvements that we are making," he wrote in an e-mail.
That could mean "unconventional marketing" that directly engages potential riders, he explained. He could not provide any examples of what such direct marketing might look like, though.
What, was Evan Hensleigh not available? WMATA will be using about two-thirds of its $1.8 million advertising budget on Williams Whittle's services. For the sake of public transportation, I sure hope that Williams Whittle has some better "unconventional" ideas than those Second Life animations which Metro rolls out every now and then -- based on the company's website, it looks like they've got a ton of experience creating slightly annoying, yet oft-imitated television ads.
robert shumake
robert shumake
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
CNN's John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite
CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...
Moore: EA not backing away from Tiger <b>News</b> - Page 1 | Eurogamer.net
Read our news of Moore: EA not backing away from Tiger.
robert shumake
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
CNN's John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite
CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...
Moore: EA not backing away from Tiger <b>News</b> - Page 1 | Eurogamer.net
Read our news of Moore: EA not backing away from Tiger.
robert shumake
Making Money on line – Exchange $469.90 for over $10,000
Yes, making money on line is not easy, unless you know what to do. There are a ton of resources that you can use to make a lot of money online, and you can actually do this all for free. It is amazing the amount of money you can could be making on line without investing any money of your own to begin with. To begin with the process of making money online, I recommend that you download this un-named free e-book (normally sells for $15). It's just a short 4 page introduction to making money on line and how to start out and start making some free money!
Now, the title talks about exchanging $470 for over $10,000. That's what we'll go over in this part of the series. So how does this whole money making thing play out? It is actually outrageously easy.
Step 1 – Join Prowealth Solutions. I'm sure you've heard of it already by now. It officially launched on the 15th of Sept 2006 and is one of the fastest growing programs. Prowealth Solutions pays you in 4 different ways:
Fast Start bonus - $25 per person you sign up.
- Monthly Matrix bonus – You are paid $1 per person in your 3x6 matrix. That can total up to $1092 per month. The cool part – you don't have to sponsor anyone yourself to get this. It can all be spillover and your down line's work.
- Matching Bonuses – You're paid 50% matching bonus on your direct referrals, 30% on the second level and 20% on the third level.
- Monthly Bonus Pools – 5% if you're bronze (3 personal recruits), 3% for silver (10 recruits or 3 bronzes), 3% for gold (30 recruits or 3 silver). 3% if you're platinum (100 recruits or 3 gold) and 5% for diamond members (3 platinum recruits).This totals to around $32 for bronze members, $75 for silver, $350 for gold, $2100 for platinum and $6800 for diamond members on top of everything else that they're already making.
Clearly, this is one of the best pay systems out there and you can be making a lot of money on line doing this, if you can recruit people. Isn't that the hardest thing though? Everyone can make money with MLM systems, if only you can get recruits. So how do you do it? You DONT!
This is one of the best things I've seen in recent history – you can get over 100 paid sign ups for $400 with a company named diamond central. Unlike most other guaranteed sign ups, these are not free members who're given a few cents to sign up under you as a free member, these are all people who WILL join under you in Prowealth Solutions.
Total Cost - $400 (for 100 sign ups) + $69.90 (for prowealth solutions - $34.95 for start up + $34.95 for the first month) = $469.90
Now let's see how much money you'll be making:
Fast Start bonuses - $2500, because of the fast start bonuses.
- Monthly Matrix bonus – At least $100, but it could be a lot more.
- Matching bonuses – based on the above, they can be a lot more too!
- Monthly Bonus Pools - $2100.
- This is the clincher – As a platinum member you get $1 for every person who becomes a paid member in the entire system in the Powerline after you. That's about $1 per minute - $60 per hour without doing anything!
Total at the end of the system (about 3 months at most) - $2500 + $300 + $700 + $60x24x30 (for just one month) = $46,700.
How's that for a return? So why did I say $10,000 in the title? Because $46,700 sounds like a big hoax! But it's possible, if only you're willing to do it. Many people never really experience God's grace because they refuse to believe that it's possible for them to sin (their pride) or that God is incapable of forgiving them because their sin is too great (belittling God). It's possible, you just need to analyze it. Look at it intellectually – is it possible? Yes! Then why let your emotions ruin the party for you?
Is it a scam? I'm already doing this! There's no way they can pretend like they signed up 100 people under you! You have your own tracking systems and you can know for sure that you are making money online regardless. Secondly, I've spoken to them many times myself, there responses have always been prompt and sincere. If there's a mistake they clarify and try to fix, but don't pretend like it never happened.
That's how easy it can be making money online. Now you're probably wondering – how do I make that initial $470? You'll learn how to do make the initial money on line without making an investment of your own in here, and in the next edition of – Making Money Online!
robert shumake detroit
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
CNN's John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite
CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...
Moore: EA not backing away from Tiger <b>News</b> - Page 1 | Eurogamer.net
Read our news of Moore: EA not backing away from Tiger.
robert shumake detroit
robert shumake detroit
Jeff Grabmeier reports on some interesting research from Ohio State’s Stephanie Moulton, which shows that borrowers with low incomes or bad credit are significantly less likely to default on their loans if they borrow from a local bank than if they borrow from a distant bank or mortgage company.
Moulton tells Grabmeier that “local banks seem to offer some protection to homebuyers, particularly those with low incomes who may be seen as risky borrowers”, and comes up with a few hypotheses as to why this might be:
Many mortgage brokers base their decisions on whether to offer a mortgage on one or more key numbers, such as a credit score. In other words, if your credit score is above a certain level, and you meet other criteria, the broker will offer the loan. The same may be true of large, non-local banks, Moulton said.
But local lenders may place more weight on other factors, such as how long you’ve been working for your current employer, and whether you make regular deposits in a savings account…
In addition, local bankers are more likely to have a continuing relationship with the borrower, through the checking and savings accounts held by the customer.
“If there’s a relationship, the borrower may feel more obligated to make their payments. And the banks may provide more education and information to the borrowers, equipping them to be better homeowners,” she said.
I think the relationship point here is absolutely key. With bank loans, the give-and-take is all very asymmetrical: the borrower gets a large sum of money up front, and then does nothing but send money back to the lender from then on in. The incentive to stop paying the money back is clear.
If the borrower has a personal relationship with the lender, however, things change — and not just because of formal education and information. Making mortgage or other loan payments is a painful chore, most of the time. But for some people it can be a happy, joyful thing: I’m buying my house! I’m getting out of debt! And it’s a lot easier to think that way if you have a human local banker who is helping you reach your goals.
When reading Grabmeier’s piece, I couldn’t help but be reminded of Maha Atal’s post about Andhra Pradesh. The problem in AP, she says, and in India generally, “is not profit or size; it’s geography”:
When Yunus first started making loans to the local poor, he was pushing back against an argument from banks that people in poverty weren’t credit-worthy, that they couldn’t understand the concept of credit and therefore couldn’t be expected to pay. There was something to that argument: credit is a learned thing, both a legal concept and a social one that emerged in the developed world over centuries, whose core component is the creation of a sense of obligation between two perfect strangers.
Dr. Yunus did not actually challenge this notion; rather he sought to get around it, by demonstrating that loans did not have to be made between perfect strangers. The essence of microlending as he devised it was not simply that the loans were small, or that the rates were friendly, or even that the group system created a culture of pressure to repay the lender. It was that the groups were self-formed, that the members already knew each other, and that the obligation to repay was constructed as an obligation to one’s peers. He did not teach them to be obligated to the creditor; he saw that they were obligated to one another…
In India, the community component of micro-lending has never been taken seriously. Both the MFIs and the SHGs rely on the national financial system, not on local capital, to get started. Neither is able to operate as a borrower-owned community bank. And so both structures take as an assumption that grouping borrowers together can lead them to feel obligated to a third party, even though that is precisely the opposite of what the Bangladesh success story showed. As the sector has expanded, the distance–physical and therefore social–between lender and borrower has expanded it with it, and it is that distance, not the size of the industry itself, that is the problem.
A loan from a friend, or someone we know, is always qualitatively different from a loan from a faceless corporation. If you’re a college-educated sophisticate moving fungible funds from one account to another, it’s easy to forget this, but come down to my local credit union on check day, when a lot of local residents receive their Social Security checks. All of them have the option of having the money paid automatically into their account, but there’s always a long line of people queuing up to deposit their check in person, with a human teller. And it stands to reason that, ceteris paribus, the people who do that are more likely to pay back one of our loans than someone hundreds of miles away who just gets a printed-out statement in the mail each month.
The spectrum from India’s poor to America’s rich is a continuous one, and U.S. subprime borrowers are somewhere in the middle when it comes to financial sophistication and trust in institutions. Similarly, successful subprime lenders tend to be pretty high-touch institutions, which take great pains to position themselves both geographically and in terms of marketing materials as close as possible to those they would lend to. The average payday lender is much more likely to know any given borrower’s name, when they walk in to the branch, than any banker — and that gives the payday lender an advantage when it comes to the borrower’s willingness to repay the loan.
The problem, of course, is that opening up local branches is a strategy which is expensive, hard to scale, and difficult to implement overnight. But it certainly helps explain why lending strategies enforced in a top-down manner from distant executives with spreadsheets can end up underperforming.
Even in times of severe budgetary crisis, WMATA still has to advertise itself. And what better way to reverse the public's negative opinion about random bag searches, constant maintenance, annoying talking buses, broken escalators, confusing fare structures and so forth than with some state of the art "guerrilla" marketing! Kytja Weir reports that the agency is going to try and get your attention the same way your local emo band does.
The transit system brought on Williams Whittle, based in Alexandria, earlier this month to help market the agency using traditional advertising but also possibly "guerrilla marketing" and "street teams," said Metro spokesman Reggie Woodruff."Williams Whittle will assist us as we continue to explore ways to increase revenue and off-peak ridership and to more effectively promote Metro and the improvements that we are making," he wrote in an e-mail.
That could mean "unconventional marketing" that directly engages potential riders, he explained. He could not provide any examples of what such direct marketing might look like, though.
What, was Evan Hensleigh not available? WMATA will be using about two-thirds of its $1.8 million advertising budget on Williams Whittle's services. For the sake of public transportation, I sure hope that Williams Whittle has some better "unconventional" ideas than those Second Life animations which Metro rolls out every now and then -- based on the company's website, it looks like they've got a ton of experience creating slightly annoying, yet oft-imitated television ads.
robert shumake detroit
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
CNN's John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite
CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...
Moore: EA not backing away from Tiger <b>News</b> - Page 1 | Eurogamer.net
Read our news of Moore: EA not backing away from Tiger.
robert shumake detroit
robert shumake detroit
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