Originally Posted By: Lilo
Indeed.
My only point is that there are many more avenues of credit available than there used to be, even for people with marginal credit, bad jobs, no jobs or poor business plans. This has to have impacted the market for traditional OC loansharking, as even though their interest rates are if anything lower, there is a stigma and fear involved in dealing with a mob backed shark, that isn't there for other alternatives.

I'm not arguing that the mob still isn't making millions from loansharking. But I don't think it's quite as much as it used to be. It's a hypothesis. I'm not aware of any rigorous comparative studies.

According to this article the payday loan business is by itself a $42 billion concern.
Payday Lenders

That swamps any loan shark portfolio by any current mob family that I know of. I imagine it would be at least comparable to, if not larger than mob loansharking in total. But like I said, I don't know of any studies. The industry is able to spend millions to ensure that state/federal laws remain to its liking.

And of course that doesn't include other "shady" creditors such as credit cards, hard money lenders, rent-to-own places, subprime mortgage orginators, etc.

When Lawrence Dentico was indicted he was accused of having a "mere" $1.6 million in loansharking proceeds over a 6 year period. And he was at the top. I don't doubt that loansharking remains profitable for certain families or groups. I just don't know that it's quite as lucrative as it used to be. For someone who needs $30K to set up a drug deal, bring in Eastern European prostitutes or pay off his local councilman to get a shady land deal approved, the local loan shark will remain the go-to guy. For others???


Legal means of obtaining loans, whether it be banks, payday loan stores, or whatever have always dwarfed loans made by the mob. And that's because a lot more people can go to a bank or a payday loan outlet, or get a credit card for that matter, than approach a mob loanshark. Like I keep saying, it's a certain type of clientele that usually borrows from the mob. Usually gamblers but also others that the mob knows but have otherwise lost the ability to obtain money elsewhere. Also, unlike other places, the mob doesn't necessarily have to have any collateral. The collateral the borrower puts up is their knee caps, so to speak.

The reason why gambling and loansharking are called the "bread and butter" or "lifeblood" of the mob is becasue they are ongoing and neverending. Unlike some other rackets we've been talking about like hijacking, porn, etc. People will always want to bet on sports or whatever and many will tend to get in over their heads and need ready cash. It's a symbiotic relationship that fuels the day-to-day business of the mob.

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