Rudolph Mensah BA 364Y Deliverable 2: Outline RETAIL BANKING: The Hole in Our Pockets Intro In the spirit of prudence, the expenditure of a household must not exceed its income. Households should only...

Rudolph

Mensah

BA

364Y

Deliverable

2: Outline

RETAIL

BANKING: The Hole in Our Pockets

Intro

In the spirit of

prudence, the expenditure of a household must not exceed its income. Households

should only spend up to how much they earn. However, there are times when

households would need to buy a few things they could not afford immediately.At

the same time, bank products which previously targeted equity financing,

commercial and farming activities underwent a paradigm shift. Commercial banks

began directing lending to target private everyday consumption and investment

in housing, by providing less secure, long, and short term loans to the public

and private individuals, known as retail or consumer banking.Meanwhile, the

access to credit has become easy and subsequently increasing in recent years.

This makes it almost impossible to find an American household which does not

have some form of debt to settle at the end of every month.

Thesis

This trend, which began

in the 1950s, is not only turning the country into a retail based economy, but has

turned a large percentage of the American public into debt repayment machines.

1. Brief History of banking

(1)

Lending history

(2)

Targets of operations

2. Consumer Expenditure

(1)

Household

consumption Statistics

(2)

Economic Boom in the 50’s

(3)

Increase in Retail Outlets and increase in

consumer spending

3. The Shift

1)

The switch to retail/consumer banking

2)

Statistics on interest income

3)

The hidden meaning of the rates

4.

Effect on

the consumer

(1)

Forced to engage

(2)

Proof of nothing

(3)

The Slaves of debt

Conclusion

The Whole in our Pockets