An editorial in a Montana newspaper asks that profound question:

It is perplexing why Montana voters chose to kneecap two lines of business, when it would obviously cost a lot of jobs at a time when the state’s economy is already struggling.

We have to wonder if voters really understood the ramifications of passing initiatives 161 and 164. Did they somehow miss the fact that a minimum of 32,000 Montanans are already unemployed?

People will always vote to make something cheaper.

Banks are relieved about the GOP takeover of the House.  From the story:

Businessweek says Elizabeth Warren in dreaming the impossible dream:

From the story:

With Republicans about to take control of the Legislature and governor’s office, payday loan stores and auto title lenders are looking to roll back limits recently placed on short-term loans.

Democrats passed a bill this year that limits payday loans to a maximum of $1,500. Democratic Gov. Jim Doyle toughened the bill, using his partial veto powers to ban loans secured by vehicle titles.

Until the Legislature acted, Wisconsin was the only state that did not regulate payday and auto title loans. The loans are typically good for two to four weeks but can be repeatedly rolled over. When they are, they can cost borrowers 500% or more in interest a year.

The restrictions on the loans take effect Jan. 1 but may not last long. Republicans took over both houses of the Legislature and the governor’s office in the Nov. 2 elections, and in the past they have viewed the industry more favorably than Democrats.

Erin Krueger, a lobbyist for the lenders, said they hope to eliminate “anti-business and anti-consumer choice” provisions in the new law. She did not detail the specific changes they want to make.

“Everything’s on the table in terms of what we’re going to discuss,” she said.

The popular blog, HotAir, posted the Reason TV video “In Defense of Payday Lending.”  One of HotAir’s commentators said this: 

…payday loaners should be allowed to serve openly in the military.

This blogger at Barron’s seems to have a grasp on how the Republican House takeover will impact Dodd-Frank: 

Expect the Republicans to use a House majority to pursue repeal of financial reform legislation, writes FBR Capital analyst Edward Mills, just don’t expect them to deliver wholesale repeal of the measures passed this summer.

From a Q&A in BizJournals with the head of the Alabama Community Bankers Association: 

 Without customers, there is no borrowing and without borrowing, there is no community bank.

Fair to say this applies to payday lending as well.

Are they coming back?  Walletpop asks.

Over something that is unlikely to happen.   The Nation has a story with this headline:  GOP’s Plan to Dismantle Wall Street Reform:

In the end, though, the House financial services committee will see a major rightward shift with either Bachus or Royce as chairman. Rep. Jeb Hensarling (R-Texas), a free marketeer who said the consumer bureau “assaults the liberties of the consumer,” is poised to take over the financial institutions and consumer credit subcommittee, while libertarian Rep. Ron Paul (R-Texas), who wants to abolish the Federal Reserve, will likely take over the domestic monetary policy and technology subcommittee. And if that didn’t spell trouble for Dodd-Frank, the House GOP’s pledge to defund the financial reform bill makes plenty clear where Republicans stand on financial issues.

Let’s see, the Dems only control the Senate and White House so obviously there are no obstacles to dismantling financial reform.   These people need to relax.

From the story:

The Wisconsin Financial Services Association has raised concerns that the rules proposed would also restrict banks, credit unions and other lenders from making small loans with very short terms. No loan under $1,500 could have a term shorter than 90 days, the rules say, or an “open-end” credit plan, one where, as with a credit card, interest continues to accumulate until the loan is paid off.