Credit unions can offer sustainable, affordable short term credit at a fraction of the cost of traditional payday lenders, says a recent report by Marva Williams, until recently Woodstock Institute senior vice president.
The recently exposed problems in the subprime lending
segment of the mortgage market should come as no surprise. Too many lenders offered too many loans with
payments that seemed affordable during a brief introductory period, but
skyrocketed shortly thereafter--leaving borrowers in foreclosure and
Saving for retirement just got a little easier, thanks to
a recently reworked tax credit available to lower-income families contributing
to a retirement account. Made permanent
as part of the Pension Protection Act of 2006, the Credit will provide
approximately $10 billion dollars in tax benefits to about 5.5 million
lower-income people over the next 10 years.
Too many borrowers have ended up with loans that were
barely affordable during a brief introductory period, but quickly became
burdensome or even ruinous after the interest rate ratcheted upwards. A recent poll suggests that fully one third
of borrowers who have taken out adjustable rate mortgage loans are uncertain they
will be able to afford the loan after the introductory rate and another third
simply plan to refinance. Even more
troubling, the wide variety of exotic loan products being aggressively marketed
to potential homebuyers has created an environment where 34 percent of
borrowers do not know whether their mortgage has an adjustable or fixed rate.
The International Labor Organization (ILO) has recently
expressed its concerns about young people around the world experiencing weak
connections to the adult world of work.
The ILO believes that in southern tier countries the major issue is the
supply of jobs. But workforce issues,
the skills of young people and their connection to job markest are also
important. In 2005 the Lula government in Brazil
echoed these concerns with the launching of its Pro Jovens program designed to
subsidize employers who provide jobs to youth.
A new study written by Malcolm Bush, Woodstock Institute president and board member of the International Center for the Study of Childhood (CIESPI) at the Pontifical Catholic University of Rio de Janeiro, using data generously provided by the Rio based
Instituto de Estudos do Trabahlo e Sociedade, points to the problems facing
young people in one low-income community in Rio, Caju,
but also to the diversity of the young people´s educational and work