The Economist recently (couple weeks ago) published a short article which argued in favor of “subprime” types of loans. The article cited an experiment in some other country where a sample of just-below-qualifying applicants were given loans and their financial position tracked over a near term (something like 18 months). This group was very profitable for the lender and gained financially over that time, providing evidence in support of such loans.

The payday loan pool is diverse and no attempts have been made to distinguish their individual credit profiles so I wouldn’t jump to a similar conclusion. But it seems plausible that the top tier of payday loan borrowers (if such could be sorted out) would be very profitable to lend to, and would also benefit from the loans. The bottom tier would probably be unprofitable and wouldn’t get ahead, but for now, they’re all lumped into one group charged exorbitant rates.

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: Consumerism Commentary says he buys generic and store brands sometimes. AllFinancialMatters asks if payday loans victimize people. MightyBargainHunter details h…