1977:\u00a0 Home ownership should be increased via government incentives and if necessary penalties for those that don’t lend money to people that can’t pay it back.<\/p>\n
Result:\u00a0 The Great Recession.<\/p>\n
2009: Access to banking services should be increased via government incentives and if necessary penalties for those that don’t offer banking services to people that don’t have any money.<\/p>\n
Result:\u00a0 [insanity]It’ll be different this time folks.[\/insanity]<\/p>\n
A report from the (coincidentally insolvent) FDIC:<\/p>\n
Consider defining a national shared government-industry
\ngoal<\/a> to lower the number of unbanked and\/or underbanked
\nindividuals and households…<\/p><\/blockquote>\nThere are people that have never been banked?<\/p>\n
Do you know anyone that is “underbanked”<\/p>\n
\u201c[There is] an imperative for government and industry<\/a> to expand financial access to the substantial number of households that have never been banked,\u201d<\/p><\/blockquote>\n
…or “unbanked” (!!!!!!!!!!!)?<\/p>\n
A push to extend basic services such as accounts to poorer communities with patchy credit histories would be especially sensitive because of the role of the subprime mortgage crisis in sparking the recent turmoil.<\/p><\/blockquote>\n
Ya think?<\/p>\n
Not having enough money to need an account was the most common reason cited for staying outside the banking system. One third of households that no longer had accounts said they closed them because of the cost of maintaining them, such as minimum balance requirements, service charges and overdrafts.<\/p><\/blockquote>\n
\u201cAs a society, we should make banks cover these people.\u201d<\/p><\/blockquote>\n
That’ll have a positive outcome.<\/p>\n
But wait! We already have a solution here in the Twin Cities…it’s called Twin Cities Federal<\/a>*. $50 for opening up a free checking account; $25 for referring your friends, open 7 days a week.<\/p>\n