Good morning. It's Thursday, March 12, and welcome to this week's Business & Finance newsletter. This week, we're covering Payday Loans, LVMH, and Capital Gains. If you have feedback for us, we're all ears—feel free to reply to this email and let us know.
As always, thank you for being a reader!
—Phoebe Bain, 1440 Business & Finance Section Editor
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Payday loans, explained
More than 12 million Americans a year take out payday loans: small-dollar, short-term loans that provide borrowers with cash that is usually due to the lender by the date they receive their next paycheck. Despite payday lenders commonly framing these loans as solutions for unexpected expenses, most Americans who take out payday loans use them to cover regular bills, like rent and utilities.
Unlike other loans, borrowers don't need a credit score to get a payday loan—they just need a valid ID, proof of income, and a bank account or prepaid card. Often capped at $500, the average payday loan is about $375.
Interest rates on these loans are usually high—the typical annual percentage rate on a payday loan is about 400%. However, these loans are usually only intended to last until the borrower's next paycheck rather than a full year. So for a two-week loan, that APR roughly equates to borrowers paying between $10 and $30 per $100 borrowed.
Roughly 80% of payday loan borrowers either default or roll over their loans, increasing the total amount they have to pay. Critics argue that payday loans are inherently predatory, pointing to their high interest rates and other common industry practices that keep low-income consumers trapped in debt. Supporters of payday lenders argue that without them, unbanked individuals and many people living in poverty would have a tough time accessing cash when they need it.
Explore everything else we've found on Payday Loans.
Also, check out ...
> A third of Americans don't have the cash they need to cover a $500 emergency. (Watch)
> Modern payday lending came about in the late 1990s. (Read)
> Payday lenders are more highly concentrated in neighborhoods with high poverty rates. (Read)
> People who take out payday loans often know they are a bad deal. (Watch) |
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In partnership with Northwestern Mutual |
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Spring Calls For A Fresh Start |
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Daylight saving time is officially here, and we feel reinvigorated. Maybe it’s the extra sun, maybe it’s the longer days, or maybe it’s just feeling like we can start fresh after the chaos and churn of the winter … especially when it comes to our finances.
Many of us put our saving habits on pause during the holidays, but the start of Spring is the perfect time to get back on track – and that all starts with revisiting your financial plan. Whether you just got married, want to retire early, make a career shift, send your kids to college or simply make sure you’re on the right path for your future, Northwestern Mutual has financial advisors who will meet you where you are and develop a personalized financial plan to get you where you want to go.
Start your Spring on the right note and learn how a Northwestern Mutual plan can help you. |
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Please support our sponsors! |
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What is LVMH?
Short for Moët Hennessy Louis Vuitton, LVMH is the world's largest luxury goods holding company. Headquartered in Paris, France, it owns and operates 75 of the most well-known and valuable luxury brands of all time—although it's known for letting its brands maintain creative independence. These companies span an array of industries and include Tiffany & Co., Veuve Clicquot, Fendi, retailers like Sephora, travel companies, and more.
The conglomerate was created when fashion house Louis Vuitton merged with alcohol company Moët Hennessy in 1987, combining their resources to create the sixth-largest publicly traded company on the Paris stock exchange at the time. The companies merged to combine financial resources and prevent takeover attempts by corporate raiders. French businessman Bernard Arnault became LVMH's chairman when he acquired a controlling stake in 1989. Arnault, who was briefly the world's wealthiest person in 2023, still serves as the chairman and CEO as of this writing.
With a market cap of roughly $290B as of early 2026, it typically far outpaces similar luxury holding companies in revenue, including Kering (which owns brands like Gucci and Yves Saint Laurent) and Richemont (the owner of Cartier and Montblanc).
Explore everything else we've found on LVMH.
Also, check out ...
> LVMH's history can be traced back to 1854, the year Louis Vuitton was started. (Watch)
> The detailed story of LVMH's evolution as a business, in podcast form. (Listen)
> LVMH CEO Bernard Arnault's children are heavily involved in the company. (Read)
> Roughly 30,000 men known as the "League of Broke Husbands" once protested Dior's practices. (Read) |
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Capital gains 101
When you buy a stock, a bond, or a longer-term asset, like a house or fine jewelry, its value can grow over time. If one of those “capital assets” grows in value and you decide to sell it, your “capital gains” would be roughly the difference between your original purchase price and the amount of money you sell the asset for.
Capital gains are also considered a form of income. But there’s one major difference between capital gains and the income you earn from your job: Capital gains can be taxed at a different rate, depending on a multitude of factors.
Let’s say an investor bought a share of stock for $5. If that investor then sold it for $140, their capital gains would be roughly $135. To figure out the exact amount, they would need to calculate the cost basis—the purchase price of that share adjusted for things like reinvested dividends and broker commissions.
Explore everything else we've found on Capital Gains.
Also, check out ...
> Long- and short-term capital gains have different tax implications. (Watch)
> Capital gains taxes were first levied in the US in 1913. (View)
> ABBA wore outlandish costumes onstage for tax reasons. (Read)
> Calculate your capital gains tax bill here. (Calculate) |
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One Story We're Taking Stock In |
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In case you missed it, one of the biggest stories in business news over the past few weeks has been around Anthropic's refusal to remove safeguards that prohibit its AI from being used for mass surveillance of American citizens and fully autonomous weapons. The Department of Defense designated the company a supply-chain risk, effectively canceling its $200M contract.
While the news has had major implications for the tech sector (particularly OpenAI, which announced a similar Pentagon deal soon after), it also generated one unexpected outcome for Anthropic's business at large: an effective marketing engine. According to the feature story below (which was among the most fascinating pieces we read on the subject), the publicity around this news may have been a more effective tool than the company's recent Super Bowl ad campaign at driving US app downloads of Anthropic’s AI model, Claude. |
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> Anthropic’s ethical stand could be paying off. (Read) |
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> How OpenAI built the world's fastest-growing consumer app. (1440 Topics) |
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> How advertising works: psychologically, economically, and more. (1440 Topics) |
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In partnership with Northwestern Mutual |
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Putting The 'Saving' In Daylight Saving |
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Well folks, we survived everyone’s least favorite 4-month stretch of the year – Daylight saving time is officially here. That means the sun is out, the days are longer and everything in life is looking good… except, quite possibly, your financial plan.
But fret not, because Northwestern Mutual has your back. Whether you’re recovering from holidays, managing the busyness of everyday life, looking to start fresh with your finances, or simply itching to take a hard look at your existing habits, Northwestern Mutual has qualified financial advisors who are here to help. Reach out to an advisor to get started on your plan today. |
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Please support our sponsors! |
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We curate hundreds of resources into 1440 Topics each week. Here are some of our favorites from the world of business and finance.
> Private credit, explained.
> Should family businesses choose relatives as CEOs?
> The average lifetime credit card debt in every US state, visualized.
> Is the US a bigger oil exporter or importer?
> How much flood insurance costs in each US state.
> The million-dollar mystery behind Milk.com.
> Inside Coca-Cola's rivalry with Pepsi.
> Why college is so expensive.
> Airbnb's origin story.
> Why "buy one, get one free" might not be a good deal. |
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"You don’t have to choose between doing good and doing well. It’s a false choice, today more than ever." |
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