You are lending yourself money and paying interest on it! Go figure!!
 

Hi Everybody,

It was reported in the Wall Street Journal today that the US Government is considering offer bailout money to smaller lending companies, those high street names that we all know (who are not able to borrow money from the bigger banks to lend to final customers) so they can have funds to lend money to the general public.

http://online.wsj.com/article/SB122577147422696357.html

Well before it was quite obvious, but this takes the biscuit. The Government will use your money (if you pay ant sort of tax in the US) to give to a company to lend back to you so you can pay interest. It doesn't need an Einstein to realize that you are paying interest on your own money, just to save a middle man.

It's clear that this sort of conduct has no legs, it can't be sustained for much time.

It would be better to just give the company some money and stick it on your tax bill, it would be cheaper, and the company could look for another area to do business.

I'm not American, but I must say it's a bit of a front to make the American citizen borrow their own money and still pay interest on it. Go figure!

Best regards,

Steve

Re: You are lending yourself money and paying interest on it! Go figure!!
 

It would provide liquidity to the market. GE Capital and CIT provide lending avenues for small business, which are currently not being served by any banks. Without funds to operate we will continue to see a decline in our small business segment.

Re: You are lending yourself money and paying interest on it! Go figure!!
 

the economy is dying, its on life support.. get ready for the results of the collapse

Re: You are lending yourself money and paying interest on it! Go figure!!
 

Hi ralok_j,

The initial bailout plan for the major banks was to help small businesses. Small businesses borrow from the major banks. The report was extremely clear.

The proposal was not to help small businesses. The additional bailout is for smaller finance companies to keep liquidity, so they can lend money to the public.

Best regards,

Steve

Re: You are lending yourself money and paying interest on it! Go figure!!
 

It's like I told my wife, there is (was) no provision in the bill to force the banks to increase lending activity. They strengthened the balance sheet, which is good, but there was no incentive to create growth. Do I blame the banks? Hell no, they realize the economics are weak. I blame Congress for throwing the half assed bill together.

Re: You are lending yourself money and paying interest on it! Go figure!!
 

Would love to go to the bank, set down with a loan officer and say, "I would like to take out a loan, from me....to me." And if they have a problem with that, maybe I could cut them a little slack on repaying me the initial loan, for the money I am borrowing from myself?:shocked:

Re: You are lending yourself money and paying interest on it! Go figure!!
 

R,

There was no such provision because that wasn't the true intention of the money payout. It was to bolster the insider banks, pure and simple. Outside of the delusional world of Washington and Wall Street it would be called fraud, and prosecuted as such.

Z