Down Economy and Shylocks Up
Down Economy and Shylocks Up
Reader DG sent me this article on the increase of loan sharking in the Down Economy.
I mentioned this in The Top Ten ways to Make Money in a Down Economy.
“When the bills started piling up and the banks wouldn’t lend, the white-haired art dealer in the elegant tweed jacket said he drove to the outskirts of Rome and knocked on the rusty steel door of a shipping container.
A beefy man named Mauro answered. He wore blue overalls with two big pockets, one stuffed with checks and the other with cash. The wad of bills he handed over, the art dealer recalled, reeked of the man’s cologne and came at 120 percent annual interest.
As banks stop lending amid the global financial crisis, the likes of Mauro are increasingly becoming the face of Italian finance. The Mafia and its loan sharks, nearly everyone agrees, smell blood in the troubled waters.
“It’s a fantastic time for the Mafia. They have the cash,” said Antonio Roccuzzo, the author of several books on organized crime. “The Mafia has enormous liquidity. It may be the only Italian ‘company’ without any cash problem.”
At a time when businesses most need loans as they struggle with falling sales, rising debt and impending bankruptcy, banks have tightened their lending to them.
Italian banks, which for years had been widely criticized for lending sparingly to small and medium-size businesses, now have “absolutely closed the purse strings,” said Gian Maria Fara, the president of Eurispes, a private research institute.
That is great news for loan sharks. Confesercenti, the national shopkeepers association, estimates that 180,000 businesses recently have turned to them in desperation. Although some shady lenders are freelancers turning profits on others’ hard luck, very often the neighborhood tough offering fat rolls of cash is connected to the Mafia, the group said.”
The Rest is Up to You…
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
The Guide to Getting More out of Life
http://www.thegmanifesto.com
Ricchi E Poveri – Acapulco
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