The credit crunch is hurting just about everyone’s stacks, even ‘Benny The Loan Shark’. We hate to be pessimistic but we just think the anthem next year is going to be “gimme the loot”.:
Benny the Loan Shark has something in common with banks - he’s made loans to subprime borrowers in danger of defaulting. But he’s not likely to get taxpayer money to buy his nonperforming assets, so the low-level street lender is thinking of a radical change in the way he does business. “I’m not really worried about people borrowing money from me, what I worry a lot about is whether they’ll pay it back,” said the 40-year-old whose “office” is the streets of the Belmont section of The Bronx. “I’m going to have to start collecting collateral - you know, like jewelry, wedding bands, necklaces and family heirlooms.” Benny, who makes loans of $100 to $200 and charges about $50 a week interest, predicts the downturn won’t affect his customers for a week or two. Those who do business with him don’t have to worry about goons coming at them with baseball bats.
That’s only for the big-time lenders, who make loans of $5,000 to $10,000, Benny said. They’re currently dispatching gorillas to collect. Continue »
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