Friday, March 17, 2017

Serving retail borrowers


Wall Street giant Goldman Sachs (GS) opened its doors up to Main Street last year, launching an online consumer lending arm called “Marcus: By Goldman Sachs.”Named after one of the bank’s original business partners Marcus Goldman—who started the firm 147 years ago with Samuel Sachs—the new retail platform allows credit-worthy borrowers to apply for fixed-rate, no-fee loans of up to $30,000 for periods of two to six years.

“It’s a big problem,” Talwar said. ” [Today] in America, there was a Fed study that [found] if a household has $400 of unexpected expenditure, then almost half the country needs to borrow, and this is across all spectrum of households …  And this is not because they are living beyond means or they are going to Las Vegas or buying jewelry. It is because life happens. Somebody has a roof leak, they need to borrow. The washing machine breaks down, your daughter’s car’s transmission breaks, and when people need to borrow most often, they borrow on credit cards.”
A completely automated process when using Redneck S&L technology.   It is not a problem, individuals have to maintain a both a deposit and a loan so the Redneck systems can observe the money quantities with bound uncertainty. Once we have our smart wallets with auto trade, then the seigniorage problem goes away and the financial system becomes  nearly balanced at all times.

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