There has been of late a trickle of “news” stories – which has Big Media FINALLY reporting something is rotten in the state of Big Banks and their loan practices.
Contained within Big Media’s tardy “reporting” – are examples of just how much they have been missing the boats for more than a year.
“Not long before the US Federal Reserve began lifting interest rates to tamp down inflation, regional banks across the US reported a surge in lending to a group of well-connected people: insiders.”
The first interest rate hike – was in March of 2022. So this “surge in lending to…insiders” has been happening for more than a year.
In fact: WAY more than a year.
We wrote – way back on August 17, 2021.
“(The small banks) were the only banks willing to loan to anyone besides billionaires.
“So America’s non-wealthy tens of millions – were forced by Big Government to go to payday lenders.
“And now Senator Brown and his DC crony cohorts – are back to finish killing off all remaining non-Big Bank lenders….”
DC’s Big Bank “crony cohorts” now murdering payday lenders – include the Federal Trade Commission (FTC):
“‘Payday Lenders Banned by Federal Trade Commission’
“‘FTC Acts to Ban Payday Lender From Industry’
“‘FTC Targets Online ‘Quick Cash’ Lenders’
“‘FTC Targets Payday Lender Over Wage Garnishing’
“This is the FTC targeting an industry – for being an industry. For doing nothing actually wrong.”
Ahh – but the payday lenders DID do something wrong: They had the audacity to not bribe Big Governments the way the Big Banks have. Mostly because – unlike the Big Banks – they can’t afford to bribe Big Government.
We have chronicled this DC double standard for the last almost two years now.
“DC murdered thousands of small banks with Dodd Frank bank ‘reform’ – which they promised would not do anything to small banks.
“DC is now planning more bank ‘reform’ – which they promise will not do anything to small banks.
“And all along the way, DC has been actively attempting to murder payday lenders.
“Because why should poor people be able to borrow money?”
Again: FINALLY – Big Media is beginning to address the problem.
“(T)he (Silicon Valley Bank-Signature Bank non-)crisis did help further tighten access to credit, especially for small businesses, leading some economists to fear that a lending ‘crunch’ could help tip the U.S. toward recession later this year.”
Again: “(F)urther tighten” – as in this was already (long) happening:
“Some of this contracting credit was already underway….”
When you aren’t reporting the news – the news can get VERY bad before you FINALLY begin reporting on the news:
“(T)he decline in credit…is very real.
“In the final two weeks of March, bank lending dropped $105 billion, according to Federal Reserve numbers, the largest single plunge on record. Much of the damage in the final week of the month came from a decline in real estate and other commercial loans from small banks.”
All of which sounds REALLY familiar. That is: If you read our stuff – rather than Big Media’s.
All of which reminds:
Big Media – is not in the news business.