The NYT reports long after alternative investors captured state government
In my days as a columnist for the News & Observer and a regular blogger, I wrote extensively about personal finance companies and their connection to hedge funds and state government. It’s been over three years since my first blog post and the New York Times has finally written the same story.
For those unfamiliar with personal finance loans, they are a form consumer credit doled out in relatively small amounts to the working poor. The loans are laced with high interest charges and fees. State legislatures, including the North Carolina General Assembly, have given these companies and their hedge fund and private equity backers all sorts of valuable relief.
There’s one important factor missing from the New York Times article: a major source of the capital being deployed by hedge funds and private equity firms comes from state pensions. In other words, public employees are basically funding the industry that preys on the working poor, including I’m sure, many state and local employees.
For those interested in the background, go to: