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Dad in Kansas Jailed Over Medical Debt from Son’s Leukemia Treatments and Wife’s Seizures
Her husband, Tres, was working two jobs in their hometown of Coffeyville, Kansas, where the poverty rate is twice the national average, but it wasn't nearly enough to pay off the debt, which hit $70,000. After he missed a court appearance about his unpaid bills and was unable to get the money for the $500 bail, Tres was sent to jail.

In Coffeyville, attorneys have taken advantage of the growing medical debts in low-income households. One lawyer interviewed by CBS News, Michael Hassenplug, pushed the local judge to establish a law that requires people with unpaid medical bills — even ones as low as $28 — to come to court every three months and say that they are too poor to afford their bills, called a "debtor's exam." And if they miss two of those court appearances, an arrest warrant goes out for contempt of court with a $500 bail.
MedicareForAll  medical  debt  costs  jail  grade_A  grade_AA 
4 days ago by Marcellus
1 in 3 consumers fear they will max out a credit card
Despite the dangers of high-interest debt, more consumers are testing the limits of plastic. To that point, more than 1 in 3 Americans — or 91 million people— said they’re afraid they’ll max out their credit card when making a large purchase, according to a new WalletHub credit cards survey. (Most of those polled considered a large purchase as anything over $100.)
money  finance  debt  credit  bankruptcy 
6 days ago by danesparza
Debt is Coming –
Debt is going to finally come to the tech industry. 

We can hate it, we can criticize it, we can raise the alarm about how dangerous debt is to the VC model we’ve honed to perfection over decades. Or we can see this moment for what it is: a turning point into a new deployment period for software and the internet. Debt is coming, whether we like it or not. And I’m actually pretty excited for it. 
technology  finance  debt  vc 
7 days ago by rpmuller
Debt is Coming –
The Deployment Period

When people in tech want to sound smart, one name you can drop is Carlota Perez. Her book Technological Revolutions and Financial Capital is a rare accomplishment: it’s a top-down “grand theory” book about the innovation economy, written by an academic rather than an on-the-ground practitioner, that actually gets things right. Read it alongside Bill Janeway’s Doing Capitalism in the Innovation Economy, the number one book that’s most influenced my own thinking.

Technological Revolutions & Financial Capital explores the relationship between Financial Capital (the equity and debt that’s owned by investors) and Production Capital (the factories, equipment, processes, and other real-world concerns which financial capital owns). Perez’s core message in the book is that Financial Capital (FK) and Production Capital (PK) have changing but predictable relationships with each other in distinct phases of technological development and deployment.

There’s a recurring dynamic of how FK and PK perceive each other and work with one another. Jerry Neumann’s explanation is good: “My long-ago operations research textbook had a cartoon showing one MBA talking to another: ‘Things? I didn’t come here to learn how to make things, I came here to learn how to make money.’ This is the view of financial capital. The view of production capital is exemplified by Peter Drucker: ‘Securities analysts believe that companies make money. Companies make shoes.’”

In the first phase of a technological revolution, which she calls the “Installation Period”, the relationship between FK and PK is fundamentally a speculative one. The new technology is exciting, and the market opportunities are large but unknown. Speculative investment, with ambitious but inexact expectations of financial return, is important fuel for founders who build the unknown future. However, investors and operators are often deeply misaligned: investors think in bets, while operators think in consequences. The relationship is tense, but can be explosively productive. The VC model is an institutional expression of this tension.

In the Deployment Period which follows, FK and PK recouple. We reach a turning point away from speculative financing and towards more aligned investment, where capital gets put to work less exuberantly and more deliberately. The investor, at this point, has a good understanding of the assets that they’re buying and the cash flows that they will generate. The operator has reasonable expectations around cost of capital, and a tried-and-true game plan for how to put that capital to work making shoes. This does not look like VC. It looks like regular finance.

Meanwhile, the Deployment Period is usually when the peace dividend of emerging technology starts to really pay off. Tech is mature and ubiquitous enough that it starts to get deployed everywhere, in a way that’s especially helpful for smaller customers who are now finally have access to the same tools and the same firepower as their bigger rivals. We enter an era of abundance, where technology creates far more value for its customers than for its vendors. FK transitions away from speculative risk capital and towards boring, deliberate underwriting.
venturecapital  debt  finance  tech  equity 
9 days ago by jackveiga
Student Debt Forgiveness: Let’s Do Some Math – Current Affairs | Culture & Politics
What does this all mean? First of all, it means that our student loan system is a lot harder on people than it is often portrayed to be. The normal system—get the loan, pay it back in set payments over time—is only working for about a quarter of loans. A full 75 percent of student debt is held by people who are either not paying at all, or who are paying some amount that is calculated depending on their income.
student_loans  education  debt  current_affairs 
9 days ago by perich

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