1. INTRODUCCIÓN
1.2. Sobrecrecimiento bacteriano (SIBO)
1.2.6. Diagnóstico de SIBO
1.2.6.2. Pruebas del aliento
In answering Charles’ question of why do black people keep going back to the firms that disadvantage them most, the previous points explain a great deal. The financial system may be vulnerable to failure, but that does not detract from a constant appetite for yield, which in turn forces any demand to be met with new product and innovation. On the firm level, deregulation and changes in credit approval processes allowed for lenders to enter the space previously held by fringe banks. Lastly, at the micro level Caskey (1996) describes some very valid themes in the ‘fringe borrower’, who shares many characteristics as minority borrowers both in financial and geographical characteristics. First, he writes that “households without financial savings must often pay more than other households for basic services” (6). It is quite possible that poor borrowers do not have the facilities available to them needed to properly evaluate the terms of the loan that they are provided. Secondly, Caskey writes that “Families that do not maintain financial savings often have bad credit records or debt to income ratios that exclude them from mainstream sources of consumer credit” (7). The fact that these consumers are often highly levered indicates a great deal of financial instability stemming from such a group. However, it is wrong to fault the borrower, which brings up the previous discussion of how a home is unique from a car as an asset. The increased indebtedness of the private sector to purchase property is funding investment, which an automobile purchase is not. While this paper argues that dependence on auto is overvalued by auto lenders as a justification for charging rates, many do rely on cars to carry out their daily lives. What separates the minority borrower in their dependence for a loan is the simple fact, as described by Caskey (1996) and Dymski,
Hernandez, and Mohanty (2011), minorities have been historically underserviced by the banking sector.
The ‘democratization’ of credit as described by proponents of financial innovation, like Goolsbee (2008), is not democratization at all5. Rather, we see that minority, and more broadly, subprime auto borrowers are largely forced into unregulated, unstable credit markets. While Goolsbee’s points were made about the mortgage sector, the market composition of auto lending in the shadow of such a crisis worsens prospects for these prospective borrowers. Jamie Dimon’s comments are largely representative of the banking sector at large, while not as bearish, few large institutions are ready and willing to take on subprime levels of risk. However, the demand for yield in securitized auto products still exists, creating for the minority borrower a market that consistently manipulates them, and then quickly disburses the irresponsible loans it creates.
Additionally, the financial system still believes that it can accurately price the risk that many of these borrowers represent. Wray writes that “Minsky was also quick to add that for many borrowers, there is no interest rate that can compensate for risk, because the higher the interest rate charged, the greater the probability of default” (Wray, 2008, 8). This, combined with the discrepancy between buy rates and markup enforced by dealers creates a source of instability in the financial system that is greatly overlooked.
5 In his paper titled “Lessons from the Subprime Meltdown”, Wray cites Alex Pollock’s Testimony before
the Subcommittee on Financial Institutions and Consumer Credit, Committee on Financial Services, U.S. House of Representatives, Hearing on Subprime and Predatory Lending, March 27, 2007, as he declares: ““What was recently seen as ‘creative’ and ‘innovative’ democratization of credit is now viewed as misguided and culpable bungling or worse.”(3).
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