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

Steve_A · 11-04-2008, 03:10 PM

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

11-04-2008, 03:10 PM	#1
Steve_A Project Avalon Moderator Join Date: Sep 2008 Location: Northeastern Brazil Posts: 1,259	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