Manhattan Institute for Policy Research.
search  
 
Subscribe   Subscribe   MI on Facebook Find us on Twitter Find us on Instagram      
 
 
   
 
     
 

Wall Street Journal

 

Bank Services Are Available to Those Who Want Them

March 06, 2012

By Nicole Gelinas

Meredith Whitney’s "America’s ’Unbanked’ Masses" (op-ed, Feb. 24) lamenting how new regulations have created "unbanked masses" features some muddy reasoning.

Ms. Whitney starts off stating that, "Fewer Americans have access to traditional banking services such as checking accounts, consumer loans and credit cards than they did five years ago." She offers no hard numbers, either on current absolutes or recent trends on this topic, saying only that a category of Americans numbering "one in four" seven years ago could number "one in three" in the unspecified "near future."

Just as deficiently, she never explains why she includes consumer loans and credit cards in the category of "traditional banking services" in the first place. Traditional banking is, er, traditionally speaking, checking and savings—that is, an account upon which you can draw for expenses and an account into which you can save.

Moreover, the examples she mentions in "consumer loans and credit cards" are aggressive even within these categories. She must be the only person in America, for example, who is worried that not enough people are taking out second mortgages or signing up for high-interest credit cards.

Leaving aside continued problems on the supply-side (lending), there are sound reasons for these pullbacks on the demand side (borrowing). Perhaps potential borrowers who have observed what has happened to house values in the past six years have realized that it is prudent to build equity up in their homes rather than tear it down, and perhaps people who have borrowed too much via revolving credit have decided not to borrow so much.

Nicole Gelinas

Manhattan Institute

New York

I am utterly confused. I have been repeatedly informed that greedy bankers spend much of their day overcharging the poor. Now, Ms. Whitney explains that the poor have no banking relationships at all. Of course, these very same bankers are to blame for this as well.

Original Source: http://online.wsj.com/article/SB10001424052970203753704577253832536195626.html?mod=ITP_opinion_1

 

 
PRINTER FRIENDLY
 
LATEST FROM OUR SCHOLARS

Pension Armageddon
Stephen Eide, 06-29-15

Pension Armageddon: Can California Voters Avoid It?
Stephen Eide, 06-29-15

Don't Count On A Leftward Push From Millennials
Kay S. Hymowitz, 06-29-15

King v. Burwell Changes Nothing. Obamacare Is Still Rife With Problems
Paul Howard, 06-29-15

The Message For Politicians In 'Jurassic World's' Shift Against Big Business
Nicole Gelinas, 06-29-15

A Machete Attack Recalls NYC's Bad Old, Pre-Giuliani Days
Myron Magnet, 06-27-15

If Andrew Cuomo Leaves The Subways To Hang, He Proves The Tea Party Right
Nicole Gelinas, 06-22-15

The Pope's Flawed Climate Math
Robert Bryce, 06-22-15

 
 
 

The Manhattan Institute, a 501(c)(3), is a think tank whose mission is to develop and disseminate new ideas
that foster greater economic choice and individual responsibility.

Copyright © 2015 Manhattan Institute for Policy Research, Inc. All rights reserved.

52 Vanderbilt Avenue, New York, N.Y. 10017
phone (212) 599-7000 / fax (212) 599-3494