Learn 5

Sorry about being late with these posts, but a death in the family took priority over all else.

Even though the situation in Detroit is getting better, there still remains a financial crisis. With unemployment still in the double digits, many people are struggling to get by. There are two concepts I have found in my research that could help out in areas like Detroit.

Community banks.

Many people are doing business with large national banks. The national banks have gone out of their way to sneak in a variety of hidden fees that constantly suck money from people’s accounts. The greatest evil that is perpetuated on their customers is outrageously high interest rates. It is a little know fact that if a bank has N.A. after it’s name, that bank is not controlled by usury laws. In other words, that bank could legally charge 100% interest. Community banks, or Credit Unions as they are know here, are held to the usury laws of whatever state they are located. Here in Michigan, the maximum interest rate is 18%; a far cry from the common 32-35% charged by the larger banks.

Script.

It is still legal under Federal banking regulations for communities to print their own form of currency as long as it does not replace the USD. Some businesses in Detroit are beginning to experiment with this concept. The idea is to keep the currency in the city. The program is still in its infancy however I think that it is worth watching.