Wealthy People are Dishonest

[Broken Arrow]

I have several side businesses that some would consider immoral. Some people would say they purposely capitalize on other people's desperation and addiction.

Now you've got me curious. What is it? Gambling?

[disneysteve]

Now you've got me curious. What is it? Gambling?

Probably not. Not really a "side business" kind of thing.

Perhaps adult entertainment of some sort.

[Broken Arrow]

Perhaps adult entertainment of some sort.

Even better!

[Joan.of.the.Arch]

Nah, nah, I'm figuring Boosami has a payday lending business so that he can cater to all addictions and all the desperate, not just one kind! Boosami, if it is that bad, please don't evn tell me!

[boosami]

Nah, nah, I'm figuring Boosami has a payday lending business so that he can cater to all addictions and all the desperate, not just one kind! Boosami, if it is that bad, please don't evn tell me!

I have many side businesses, and they encompass all the guesses so far except for payday lending. Lending in general takes too many permits and what not. I will say that my "immoral" businesses get a much higher rate of traffic (and profit) than the fully moral ones...

Keep throwing out ideas maybe I'll find my next side business idea!

[disneysteve]

Nah, nah, I'm figuring Boosami has a payday lending business

That's a very good topic for this thread - predatory lending. It is perfectly legal, unfortunately, but is it a good honest business or does it take advantage of the poor and uneducated? Just because something is legal doesn't necessarily mean it is honest, or does it?

[EEinNJ]

It's entirely possible for a wealthy person to make their money honestly, through talent and hard work. Think of a famous author or musician, or an NFL player or actor.

Now replace "person" with corporation, and think of all the "gotcha" practices of banks, credit card co.s, car rental outfits like AVIS that just ripped off my wife... But these corporations are run by people- dishonest people who look for ways to systematically extract more profit from their customers, and their minions, who say "I was only following orders".

[boosami]

That's a very good topic for this thread - predatory lending. It is perfectly legal, unfortunately, but is it a good honest business or does it take advantage of the poor and uneducated? Just because something is legal doesn't necessarily mean it is honest, or does it?

Generally speaking I believe if something is legal, then it is possible to do it in an honest way.

In my opinion, predatory lending is a legal practice that was often executed with disregard to honesty. If a lender explained the types of loans, gave you multiple options, and you chose the risky one to get lower payments, that's your fault--the lender was honest about your options and consequences. If the lender forced you into a sub-prime 80/20 split with a 1/1 uncapped APM and acted like that was the "best" or "only" option, that is dishonest on the part of the lender.

The former happened to me when I refinanced a mortgage. Would my lender have given me the more risky loan if I wanted it? Sure. Was he being legal and honest? Absolutely--so honest in fact that he gave me an option that existed but was not the best idea. I wanted to know the options and he didn't omit anything at all, good or bad.

[disneysteve]

Good point, boosami. Somehow I suspect that most in the predatory lending business don't explain the terms and conditions. They probably just hand over a document of fine print and legalese and consider that to be informed consent.

Heck, I don't think that most people who take an "instant" tax refund even comprehend that what they are actually getting is a loan and I'd bet that not 1 in 5 of them could tell you the interest rate on that loan.

[bones72]

Disney steve, yes there are many nefarious practices in the car business. I have seen most of them. And I have for years wanted the manufactors to demand one-price on a straight buy. With the tightening of invoice to sticker(hovering around 4% markup) that is coming. Personally I don't like negotiating, as it demeans the product, and the sales process. There are more important issues to address such as over-financing, hidden charges, document fees, and nearly worthless extra-cost warranties. Yes, I agree, when I sold cars in the "City"(I'm in a small rural dealership now) customers hated buying cars because of the extreme high-pressure sales tactics. Here, I personally know 95% of my customers, and I can do my job right!

[Goldy1]

I won't insult my intelligence and make blanket statements about groups of people.

[cptacek]

Capitalism is about *mutually beneficial exchanges*.

Yes, you charge more for the product than your discount price. But you took the time to look for the discount, which your customer didn't want to do. He valued his time, you valued his money, you both win.

I like this.

I know a guy who refurbishes laptops and sells them. He sold me a bunch of them for $155. I sold them for $200 (except to my sister...she got $155) to relatives and friends around here. Was that immoral? They don't know him. They wouldn't have gotten a laptop for that cheap any other way. Was it bad that I made a $45 profit for installing antivirus software and Office (all licensed correctly) and delivering?

I don't think so. I didn't force them to buy the computer. They got a good laptop, with a few scratches on the cover, and I made a profit.

[bones72]

Cpatcek, sounds like a solid business deal. Uh, got any left?

[maat55]

I think it is as simple as poor people do not understand how sacrifice and saving can make you wealthy. It is easier for them to claim foul than do the work.

[cptacek]

bones72, I reserved 6 and got them all sold in like 2 days. I'll have to see if he has any more, and when I can get down to Wichita to pick more up. I'll p.m. you if I get more