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|Subject: Fraudulent Nature Of The Bank Bailouts Exposed||Date: 10/15/2012 1:06 PM|
|Author: MadCapitalist||Number: 648926 of 846953|
Amazon.com Exposes The Fraudulent Nature Of The 2008 Bank Bailouts
"A regular response from bank bailout apologists back in 2008 was that absent the use of taxpayer money to prop them up, lending would freeze and businesses would collapse. The bailouts were necessary, according to the apologists, because our much-admired commercial sector is and was reliant on bank credit.
The above arguments were naturally ridiculous. As Thomas Woods noted in his book Meltdown, banks in 2008 only accounted for 20% of corporate lending. Furthermore, going back 100 years to the early part of the 20th century, according to G. Edward Griffin’s very uneven (and often conspiratorial) book The Creature from Jekyll Island, 70%+ of lending to corporations was of the corporation-to-corporation variety.
Put plainly, banks in the U.S. have long since been eclipsed by alternative sources of finance when it comes to providing companies with credit.
Back in the summer of 2010, with its small-business clientele suffering from tighter than normal credit, Walmart’s Sam’s Club subsidiary announced its willingness to provide its customers with $25,000 lines of credit. Walmart has for years tried to get into banking, absurd regulations about new entrants arguably kept it from purchasing some of the insolvent banks in ’08, but even without a banking charter, Walmart was able offer up credit at a time when banks weren’t able to.
Much the same is occurring now at Amazon.com. Traditional banks remain careful about lending, but Amazon, flush with cash, is eagerly substituting for the banks. Through its Amazon Capital Services subsidiary, Amazon is helping the sellers on its website to access credit that is in short supply at the moment from banks."
We mustn't let facts get in the way of what we know.
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