Are Amazon and Alibaba replacing banks as lenders for small businesses?

Since the banking crisis of 2008, financial institutions have found that borrowing large sums of money from the Fed and then simply buying U.S. Treasuries has been much more profitable and less risky than lending it to businesses.  And as a result, the amount banks used to lend to companies, especially those categorized as small businesses, have declined by between 20-30%, leading many of these Mom and Pop operations to close their doors to the tune of 170,000 between just 2008 and 2010 alone.

And even in 2017 with the Fed having pumped tens of trillions of dollars into the financial system over the past nine years, very few banks are lending money to small businesses to try to grow the economy.  And as a result the vacuum for providing capital may be coming from two interesting new sources.

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The American e-commerce giant Amazon has announced that for the last 12 months the company has loaned $1 billion to small businesses.

More than 20,000 small businesses in the US, UK, and Japan have received a loan from Amazon. The company says businesses can apply for loans ranging from $1,000 to $750,000.

“We created Amazon Lending to make it simple for up-and-coming small businesses to efficiently get a business loan because we know that an infusion of capital at the right moment can put a small business on the path to even greater success,” Amazon Marketplace VP Peeyush Nahar said. – Russia Today

And it’s not just Amazon who is getting into the lending business, but also their biggest rival over in China who sees the creation of small business the key to growing their own platforms in the e-commerce sphere.

An Alibaba-backed private lender said on Monday that its focus on providing financial services to clients who are underserved by traditional banks has resulted in billions in loans to small businesses and individuals over the past eight months.

E-commerce giant Alibaba holds a 30-percent stake in MYbank through its financial arm, Ant Financial. MYbank said it has lent a total of 45 billion yuan (around $6.88 billion) to farmers, merchants on Alibaba’s online marketplace, restaurant owners and mom-and-pop stores, extending loans to 800,000 borrowers that have trouble accessing financing through traditional banks.

In the eight months since it opened for business last June, MYbank’s loan balance has grown 30 percent each month on top of a client base that has been expanding 12 percent for the past five months. – China Daily

Ever since the 2008 financial crisis, the traditional banking model has virtually ceased to exist, with central banks focused on pumping up equity markets, and private banks focused on securities speculation.  And this has now opened the door for capital financing to be taken over by internet commerce conglomerates and crowdfunding platforms, who see the benefits of such lending going far beyond simply being a return on their money.

Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.comRoguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.

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One Hundred and Fifty-Seven years ago the Democrats waged a war against the First Republican President Abraham Lincoln for giving Blacks their freedom. That war came at a high price, as many as 700,000 Americans died fighting for what they believe in. To put that in perspective, these casualties exceed the nation’s loss in all its other wars, from the Revolution through Vietnam. Today, Americans are still prepared to fight and die to protect their children’s God-given freedoms. Despite what you are reading and hearing in the mainstream media, they aren’t the leftwing-funded rioters, the pussy hat-wearing feminists, or the cuck bois that cant handle a micro aggression. No, the Americans that back Donald Trump are well armed. Donald Trump’s presidency will move forward politically lest the sixty million patriots who voted for him, that are comprised of the large majority of military voters, police, and NRA members, move it forward by force. 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And, now that they’ve been caught robbing the world’s largest bank – the U.S. treasury – they have chosen to go out in a blaze of glory rather than try to defend the indefensible at trial. Washington’s criminal elites have chosen to go to war to unseat our duly elected president. It’s time to make our voices heard before this turns very ugly. Buckle your chin strap, America is counting on you. EDITORS NOTE: THIS IS NOT A CALL TO ARMS BUT RATHER AN ANALYSIS OF WHAT WOULD HAPPEN IF THE DEEP STATES OVERTURNS A DUELY ELECTED PRESIDENT. HERE IS A LIST OF EVERY SINGLE TIME OBAMA COMMITTED AN IMPEACHABLE OFFENSE THAT DEMS & MEDIA COVERED UP “Impeach!” It’s been more than eight years since Democrats uttered that word – long enough for anyone to wonder if it was still in their vocabulary, considering the deafening silence through the dozens of serious scandals during President Obama’s administration – but now that President Trump is the man in the White House, it’s back with a vengeance. Democrats everywhere are wildly slinging the “I” word, hoping to nail Trump for high crimes and misdemeanors after the New York Times claimed a memo written by former FBI Director James Comey said the president urged him to end the federal investigation into former national security adviser Michael Flynn. Some members of Congress are getting in on the action. They include Reps. Maxine Water, D-Calif., and Al Green, D-Texas. Even a Republican, Rep. Justin Amash, claimed Wednesday there are grounds to impeach President Trump. House Oversign Committee Chair Rep. Jason Chaffetz, R-Utah, asked for the alleged Comey memo and other documents. Chaffetz tweeted that he is prepared to subpoena the information. And Sen. John McCain, R-Ariz., invoked “Watergate.” Now the Democratic Party is reportedly poll testing impeachment as a 2018 election issue. More than 1 million people signed a petition calling on Congress to impeach Trump. Wasting no time Wednesday, the mainstream media sprang into action, enthusiastically echoing the left’s impeachment calls. MSNBC launched a Watergate ad implying Trump is America’s new Richard Nixon. “Watergate. We know its name because there were reporters who never stopped asking questions,” says MSNBC host Chris Hayes, who hinted that Trump is next on the impeachment chopping block. “Now, who knows where the questions will take us. But I know this: I’m not going to stop asking them.” Meanwhile, some overzealous members of the left plastered fliers around Washington, D.C., demanding all White House staffers resign Wednesday. The posters read: “If you work for this White House you are complicit in hate-mongering, lies, corrupt taking of Americans’ tax money via self-dealing and emoluments, and quite possibly federal crimes and treason. Also, any wars will be on your soul. … Resign now.” But constitutional scholar Jonathan Turley, who voted for President Obama, warned “impeachment” enthusiasts not to get ahead of themselves with President Trump. Why? At this time, there’s no evidence Trump actually committed a crime. “The criminal code demands more than what Comey reportedly describes in his memo,” Turley wrote in a May 17 opinion piece posted at the Hill. Turley explained: For the first time, the Comey memo pushes the litany of controversies surrounding Trump into the scope of the United States criminal code. However, if this is food for obstruction of justice, it is still an awfully thin soup. Some commentators seem to be alleging criminal conduct in office or calling for impeachment before Trump completed the words of his inaugural oath of office. Not surprising, within minutes of the New York Times report, the response was a chorus of breathless “gotcha” announcements. 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