Broke, USA: From Pawnshops to Poverty, Inc.—How the Working Poor Became Big Business
From the author of the New York Times Notable Book of the Year Drive By comes a unique and riveting exploration of one of America’s largest and fastest-growing industries—the business of poverty. Broke, USA is a Fast Food Nation for the “poverty industry” that will also appeal to readers of Barbara Ehrenreich (Nickel and Dimed) and David Shipler (The Working Poor).
248 Roedersheimer, Chuck, 299–300, 304–6 Rogers, Freddie, 105–8, 111, 113, 114, 139, 143, 222, 248 Rogers, John, 90–91 Rolland Safe Company, 270 Rosenthal, Cliff, 326 Rothbloom, Howard, 30, 37, 43–46, 47, 55, 248 Rothstein, David, 290 Rubin, Robert, 144 Sacramento Business Journal, 122 Safer, Morley, 50 salary buyers, 53 Salomon Brothers, 148 Sandler, Herbert and Marion, 165–67, 235–37, 238, 318 Santa Clara, 292–93, 308 Santelli, Rick, 29 Sarbanes, Paul, 143 Saturday Night
339.4'60973—dc22 2010002874 EPub Edition © May 2010 ISBN: 978-0-06-199794-5 10 9 8 7 6 5 4 3 2 1 About the Publisher Australia HarperCollins Publishers (Australia) Pty. Ltd. 25 Ryde Road (PO Box 321) Pymble, NSW 2073, Australia http://www.harpercollinsebooks.com.au Canada HarperCollins Publishers Ltd. 55 Avenue Road, Suite 2900 Toronto, ON, M5R, 3L2, Canada http://www.harpercollinsebooks.ca New Zealand HarperCollinsPublishers (New Zealand) Limited P.O. Box 1
“We’ll give it a try. We’ll make $10 million worth of these loans. I think we’ll lose half that money but it’s worth it to get you out of my office so I don’t have to hear you talking anymore.” As Eakes likes to tell the story, he walked out of Baker’s office without another word. As Baker had promised, Wachovia wrote $10 million in home loans to those with solid work records but tarnished credit ratings, and Wachovia would write another $10 million in similar loans after that. But though people
Banking reported, “when the profit potential of the sub-prime industry convinced banks this might be a business opportunity.” Was it any wonder, then, that a man named Hugh Miller, the president of Delta Funding, a large New York–based subprime lender, boasted, “my phone has been ringing hot and heavy,” though his company was under federal investigation. The “profit potential” of players in this “promising sector,” the magazine reported, were making such deals “irresistible.” Yet never before
and interest rates (typically between 14 and 25 percent) they tack onto the bills they have been assigned. The CRL would naturally focus on exploitative subprime mortgages. The problem had grown only more acute since they had sided with Freddie Rogers in his fight with Associates and there was no doubting their authority in this realm. Kathleen Day remembered when she was covering the banking industry for the Washington Post and for the first time saw Eakes testify before Congress. Most