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A major point of DeFi is that it is permissionless. Half of the population doesn't have access to banks and loans.
No.

Almost everyone has access to banks, and creditworthy people have access to loans.

If you can't get a bank account, you're likley not going to be able to get access to crypto.

If your current credit history is so bad that nobody will lend you money, I can't imagine the cryptspace is going to be all eager to lend you money either.
 

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You seem to be thinking of just the Canadian population rather than the world population

Peer to peer lending already exists in many forms - DeFi just makes it easier and more efficient
 

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GSY reports incredible results, increases dividend by 47% (it's been constantly increasing their dividend by such huge percentages), it's currently rallying and its short ratio is 9.23. What's not to like?
 

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My initial purchase of GSY during the crash just hit 4X (+300%).
 

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You might want to keep an eye on the progress of Bill C-274, which would reduce the maximum interest rate to 20% over the BOC lending rate.

Adjusting the usury laws are also mentioned in the 2021 Federal budget.

Changes would not likely affect credit cards or payday loans (exemption for the Provinces to decide) but would impact a number of "alternative" lenders.

Rates of lending among the companies typically varies in a range of 39% to 49% per year.

Personally, I don't think it is a good idea to cut of lending sources for people who don't qualify for a bank loan, without being replaced with some kind of other method of financing.

Some companies do report to credit agencies which does give people a chance to improve their credit rating, and that is a good thing.

But it appears, the consumer groups have a different opinion.
 
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Congratulations on jumping in when you did.

It reminds me of years ago I heard about a company called Carfinco that lent money at 49% to people to buy used cars. They put a GPS on it so they could track it and shut down the engine if the payments weren't made.

At the time, I had about $70,000 invested in penny stock biopharma companies and was immersed in that on a daily basis. It was pure speculation and gambling........and my money would increase $4000 one week and down $3000 the next.

I thought at the time I should sell all those penny stocks and put it all into Carfinco, at...........25 cents a share. But, as per usual I got distracted and forgot about it.

I finally sold out all my biopharma shares on an upswing.........and was thrilled to get out and make a few dollars.

Then one day I saw a headline on the business news........Carfinco bought by a big lender and paid I think it was $9 something a share.

Cripes....I would have had 280,000 shares but that is the story of my life...........a day late and a dollar short........LOL.
 
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You might want to keep an eye on the progress of Bill C-274, which would reduce the maximum interest rate to 20% over the BOC lending rate.

Adjusting the usury laws are also mentioned in the 2021 Federal budget.

Changes would not likely affect credit cards or payday loans (exemption for the Provinces to decide) but would impact a number of "alternative" lenders.

Rates of lending among the companies typically varies in a range of 39% to 49% per year.

Personally, I don't think it is a good idea to cut of lending sources for people who don't qualify for a bank loan, without being replaced with some kind of other method of financing.

Some companies do report to credit agencies which does give people a chance to improve their credit rating, and that is a good thing.

But it appears, the consumer groups have a different opinion.

Just means the businesses will close, and these people will have no legal options to borrow money.
 

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I think the Liberals are acting slow on the changes because they recognize the need to get something else in place for people who need affordable small loans.

Giving access to loans doesn't necessarily have to cost 49% a year in interest, or in the case of payday loans.....600% interest per annum.

Maybe these companies could borrow directly from the BOC at low rates and then charge a more reasonable rate of interest.

If the government is the final guarantor of the loan......they have the power to seize anything, including pensions and government benefits.
 

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I think the Liberals are acting slow on the changes because they recognize the need to get something else in place for people who need affordable small loans.

Giving access to loans doesn't necessarily have to cost 49% a year in interest, or in the case of payday loans.....600% interest per annum.

Maybe these companies could borrow directly from the BOC at low rates and then charge a more reasonable rate of interest.

If the government is the final guarantor of the loan......they have the power to seize anything, including pensions and government benefits.
What needs to happen is financial literacy and get these people more productive so they have more money.
It's bad to be overleveraged.
 

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I agree..........the banks need some education in financial literacy.

These alternative loan companies and payday loan companies are gobbling up the profits.
 

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I agree..........the banks need some education in financial literacy.

These alternative loan companies and payday loan companies are gobbling up the profits.
The banks are poorly equipped to handle the high risk markets.

Great credit customers can today easily apply and get loans with very little (if any) human interaction from the bank side, all the transactions are handled by computer.

Payday loans are a lot more risk, and a lot more work.

If these restrictions are bad, the borrowers will just go to unregulated financial services, which is likely not good for them.
 

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GoEasy is a subprime lender, and their success closely mirrors the American credit boom (and mania) in the early 2000s.

We have a runaway housing bubble, record low interest rates, tremendously easy credit (for homes, cars, and consumer goods) and companies like GoEasy are well positioned for the current environment. For example, GoEasy finances home furnishings and appliances, so as people buy homes they can't afford, and fill it with junk they can't afford, GoEasy is there.

I think they are incredibly exposed to the housing and credit bubble (the two are closely related) so they should do fine as long as the credit bubble continues. But they are also very exposed, if the "fun" ends.
 

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Looking at some of the stuff they sell... If someone is stupid enough (or rich enough that they don't care) to buy a "gaming chair" worth $300 for $12/week for 104 weeks, then I have no empathy and I'm happy those people are contributing to the valuation of my GSY shares currently running more than +300% in a year. That's just money going from the stupid to the wise. Darwin's natural selection. Meanwhile I'm making $100k a year, yet I'm buying a desk chair $30 at IKEA for my work-from-home setup, and I bought my desk $25 on Marketplace.

Some people have sad stories, but some are just plain stupid.
 

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Did you keep it? I got a 2X out of GSY last year, but have sold and moved most of that into oil (which has also doubled).
The position I bought in mid-April 2020 is currently at +326%. And I'm overall at +210% with the other (bigger) position I took a bit later. I'm still holding long.
 

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The position I bought in mid-April 2020 is currently at +326%. And I'm overall at +210% with the other (bigger) position I took a bit later. I'm still holding long.
Awesome! Just beware, this is going to be a volatile sucker. I had to reject it from my own portfolio because it failed my volatility screening criteria.

For example it could easily drop 40% and still remain in a technical uptrend.
 

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Awesome! Just beware, this is going to be a volatile sucker. I had to reject it from my own portfolio because it failed my volatility screening criteria.

For example it could easily drop 40% and still remain in a technical uptrend.
Yes, definitely.
 

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GoEasy is a subprime lender, and their success closely mirrors the American credit boom (and mania) in the early 2000s.

We have a runaway housing bubble, record low interest rates, tremendously easy credit (for homes, cars, and consumer goods) and companies like GoEasy are well positioned for the current environment. For example, GoEasy finances home furnishings and appliances, so as people buy homes they can't afford, and fill it with junk they can't afford, GoEasy is there.

I think they are incredibly exposed to the housing and credit bubble (the two are closely related) so they should do fine as long as the credit bubble continues. But they are also very exposed, if the "fun" ends.
When the credit bubble stops inflating a lot is in trouble.

Fortunately it seems that a lot of people used that COVID stimulus money to improve their situations, not to buy crap.
 

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I've touched a 5X (+400%) today on the first position that I took on this stock in April 2020, 16 months ago. Wow. My highest return so far. Sure, it's easy because I bought it during the dip of a flash crash.

(So that I don't look like I'm just bragging about the good picks, my worst pick is currently at -62% after 8 months. But let's just say that I currently have 5 picks at -40% or worse and 4 picks at +200% or better and overall my XIRR is currently more than 50%)
 
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