5 Charts Show How Banks Are Raping Small Business

9 Jul

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.”

– J. Paul Getty

With Dun & Bradstreet’s most recent ‘Business Failure and Start-up Analysis’ reporting that “the number of small businesses going bankrupt jumped by 48 per cent over the last 12 months” — growing by 57 per cent over the year among firms with less than five employees, and 40 per cent over the year among firms with six to 19 employees — and that the start-up rate for small businesses fell by 95 per cent, it is worth taking a closer look at the usury rates charged by the banks for small business loans, as compared to large ones.

The following charts show the total value of variable usury-rate business loans, that have a usury rate of 17 per cent or greater.

First, loans of $100k to less than $500k:

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Loans of $500k to less than $2 million:

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Loans of $2 million and over:

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And finally, loans of less than $100k:

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Clearly there’s been no mercy shown by the usurers to their smallest business borrowers, post-GFC.

Here’s the direct comparison of business loans less than $100k, versus loans greater than $2 million, that are copping a 17 per cent or greater rate of usury:

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All-time record low “official” interest rates?

Perhaps someone forgot to tell the usurers.

Who needs small businesses anyway, right?

Monopoly “capitalism” is much better.

For the 0.1% at the very top.

“Competition is a sin.”

– John D. Rockefeller

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5 Responses to “5 Charts Show How Banks Are Raping Small Business”

  1. mick July 9, 2013 at 2:29 pm #

    Not too sure how to interpret the graphs.

    It seems to me that what they are saying is that big business has paid off debt after the GFC or that small business has gone into debt or is expanding. Not conclusive from my interpretation.

    Be aware of the saying from Benjamin Disraeli about “lies, damned lies ans statistics” though.

    • The Blissful Ignoramus July 9, 2013 at 4:31 pm #

      Think you may be missing the key point. These charts are of the total value of variable rate business loans, and specifically, those at 17% or higher. They are not of ALL loans, at all rates of interest.

      All these charts clearly say, is that — post-GFC panic — there has been a long steep rise in the total of business loans outstanding of less than $100k (at 17% or higher), and a small rise in the total of loans to business of $100k-$499k (at 17% or higher). But once we go above a loan size of $500k, we see that there has been a fall in the total of business loans outstanding of $500k-$1.99m (at 17% or higher); and a larger fall in the total of loans of $2 million or more (at 17% or higher).

      In that same timeframe (from the GFC “low” of 3%, April 2009), the official interest rate has first risen (to 4.75% Nov 2010), then fallen (Nov 2011) to a new record low (2.75%, May 2013). In the same time, the value of small business loans paying 17% or more, has risen and kept on rising, despite falling official interest rates, to what is now a lower than GFC low. And while the value of small business loans paying 17% or more has risen, big business loans paying 17% or more, has fallen.

      This data does not support an interpretation that “big business has paid off debt after the GFC”. They may have. But the data shown does not support that assumption. All it shows is that the total of loans $2m and over — paying 17% interest or more — has fallen. There could be any number of reasons for this, including a rather obvious one; their being able to obtain refinancing from the banks at lower rates:

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      The data does not support an interpretation that “small business has gone into debt or is expanding”, either. Why? Firstly, because this is only a snapshot of the total value of loans outstanding (per quarter) that were/are paying a 17% or higher rate of usury. The rise could be explained by banks shifting more of their $100k or smaller loans onto higher interest rates, and/or insisting on higher interest rates for any new small business loans — something which is anecdotally well-supported. Secondarily, the Dun & Bradstreet report (linked in the blog) shows small business suffering record high failures — for your suggestion to be true, then those small businesses not failing would have to be “expanding” — itself rather unlikely amidst record failures for their fellow SME’s, wouldn’t you say? — and, doing so by taking on more business loans of up to $100k, at rates of 17% or more, in order for your suggestion to fit the data.

  2. Kevin Moore July 10, 2013 at 5:59 am #

    When the economy is going bust it seems to me that the Banks switch from being parasites and turn into cannibals [ cahna – baals ].
    .
    The source of the problem appears to be here –
    ,

    The medieval, unaccountable Corporation of London is ripe for protest
    2011-10-31, The Guardian (One of the UK’s leading newspapers)
    .
    http://www.guardian.co.uk/commentisfree/2011/oct/31/corporation-london-city-m
    .
    “It’s the dark heart of Britain, the place where democracy goes to die, immensely powerful, equally unaccountable. But I doubt that one in 10 British people has any idea of what the Corporation of the City of London is and how it works. As Nicholas Shaxson explains in his fascinating book Treasure Islands, the Corporation exists outside many of the laws and democratic controls which govern the rest of the United Kingdom. The City of London is the only part of Britain over which parliament has no authority. This is … an official old boys’ network. In one respect at least the Corporation acts as the superior body: it imposes on the House of Commons a figure called the remembrancer: an official lobbyist who sits behind the Speaker’s chair and ensures that, whatever our elected representatives might think, the City’s rights and privileges are protected. The mayor of London’s mandate stops at the boundaries of the Square Mile. The City has exploited this remarkable position to establish itself as a kind of offshore state, a secrecy jurisdiction which controls the network of tax havens housed in the UK’s crown dependencies and overseas territories. This autonomous state within our borders is in a position to launder the ill-gotten cash of oligarchs, kleptocrats, gangsters and drug barons. It has also made the effective regulation of global finance almost impossible………………”
    .
    Nice photos here of the Crown City of London Annual Procession.
    .

    http://www.lordmayorsshow.org/
    .
    “A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and he carries his banners openly. But the traitor moves among those within the gate freely, his sly whispers rustling through all the galleys, heard in the very hall of government itself. For the traitor appears not a traitor, he speaks in the accents familiar to his victims, and wears their face and their garment, and he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of a city, he infects the body politic so that it can no longer resist. A murderer is less to be feared.” Cicero, 42 B.C
    .

    The first Governor in 1694 of the now Rothschild owned Bank of England was the former captain of a pirate ship, Scotsman William Patterson [his antecedents were gravely suspected]. There was less chance of him getting hung as a financial pirate of the highland than as a pirate of the high seas. His black market policy was that of getting much for nothing by any means and by selling in the dearest market his spoils. That was the policy he established on land under financial piracy, and it has come right down to our times.
    .

    A number of International Banks are registered in the Channel islands. It and the “Crown City of London” are exempted as I understand it from Statute Law by the-
    .
    “Colonial Courts of Admiralty Act 1890”
    .
    “Exception of Channel Islands and Other Possessions –
    .
    “The provisions of this Act with respect to Colonial Courts of Admiralty shall not apply to the Channel Islands. It shall be lawful for the Queen in Council by Order to declare, with respect to any British possession which has not a representative legislature, that the jurisdiction conferred by this Act on Colonial Courts of Admiralty shall not be vested in any court of such possession, or shall be vested only to the partial or limited extent specified in the Order.”
    .

    Colonial Courts of Admiralty Act,1890
    http://web.uct.ac.za/depts/shiplaw/legisltn/1890act.htm
    .
    http://freespace.virgin.net/bank.help/Facts/documents/10912.html
    .

    Seas and Submerged Lands Act 1973
    http://www.austlii.edu.au/au/legis/cth/consol_act/sasla1973207/
    .

    http://www.barefootsworld.net/admiralty.html
    Treason in Government! Admiralty on Land!! Where’s the Water?
    ..

    http://loveforlife.com.au/content/08/03/05/international-law-admiralty-maritime-process-are-you-lost-sea

  3. Kevin Moore July 10, 2013 at 7:57 am #

    http://www.veteranstoday.com/2013/07/09/egypts-deniable-coup-another-anti-islam-psy-op/
    .

    In a story about the military coup in Egypt Australia rated a mention –
    .
    The key to a covert coup is good propaganda. If you can make enough people hate the democratically-elected leader, it will be easy to overthrow him… and disguise the fact that a coup has occurred.
    .
    By coincidence, I happened to be in Australia in 1974, just as the CIA was about to overthrow democratically-elected Prime Minister Geoff Whitlam in a covert coup d’état. Here is how they did it.
    .
    First, they used international banking institutions to strangle Australia’s credit and damage its economy… just as the anti-Morsi coup plotters did in Egypt.
    .
    Then they used domestic assets to further sabotage the economy. (So did the anti-Morsi coup plotters.)
    .
    Next, they used their control of the media to generate an endless barrage of anti-Whitlam propaganda… just as the Egyptian plotters used the controlled Egyptian media to crank out anti-Morsi
    propaganda.
    .
    With the economy destroyed, and the targeted leader smeared by the media, it was easy to overthrow the elected leader and pretend that it was “the will of the people.”
    .
    The CIA’s overthrow of Geoff Whitlam in 1974 was designed to save the CIA’s huge base at Alice Springs, which Whitlam wanted to close. It was also designed to prevent Australia from “going socialist” and slipping out of the US orbit into the non-aligned camp.
    .
    The Egyptian generals’ coup against Morsi is designed to prevent Egypt from “going Muslim” and slipping out of the Israeli-US orbit into the non-aligned camp. More broadly, it is part of a massive anti-Islam psychological operation waged by Western leaders since the 1979 Islamic revolution in Iran.

    • The Blissful Ignoramus July 10, 2013 at 10:38 am #

      Interesting Kevin. I know there’s been some talk about whether Rudd was deposed in 2010 thanks to CIA involvement – ergo, one of the chief “backroom men” (former) Senator Arbib, along with a few other Labor MP’s, was outed as a CIA informant by Wikileaks’ release of diplomatic cables. There are a number of reasons why the USA (and its “handlers”) might have wanted Rudd gone — his talk of pulling out of Afghanistan, “thought bubble” announcement of a new Asia Pacific Economic bloc, public pressuring for China to get a greater say in the G20, etc.

      Since then, we’ve had both Gillard and Abbott bowing and scraping and competing against each other to suck up to the USA’s every whim (viz Marines in Darwin, possibility of drones flying out of Cocos Islands, possibility of US fleet harbouring in WA).

      In the context of all that, I also think it interesting that there’s not been (that I’ve seen) any msm publicity claiming loud applause and congratulations coming from Washington/London for the newly ascendant Rudd.

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