SummerSailing81
April 3rd, 2008, 06:41 PM
http://biz.yahoo.com/ap/080403/fed_credit_crisis.html?.v=10
To me this sounds eerily like those "payday" loans that people get to tide them over until they get their next paycheck. My question is - as it would be to an individual who got a payday loan - how are you going to pay it back and with interest when you're over extended to begin with? Let's be honest, many people get payday loans because they're either not making enough money to pay their bills in the first place or they're living beyond their means. We all know the banks and mortgage companies are in this mess because of their unadulterated greed and not because some unexpected expense suddenly came up. And borrowing $38.1 BILLION in one week! How much money will these firms have to make in order to pay this debt off? My other concern is how on earth is our government lending all this money when we're trillions of dollars in debt and gaining more every single day? At some point won't the government well run dry? I just can't wrap my mind around how all this money is being lent when it really doesn't exist - we're running in the red so how can it exist. OK, my head has officially exploded trying to figure all of this out. :nuke
To me this sounds eerily like those "payday" loans that people get to tide them over until they get their next paycheck. My question is - as it would be to an individual who got a payday loan - how are you going to pay it back and with interest when you're over extended to begin with? Let's be honest, many people get payday loans because they're either not making enough money to pay their bills in the first place or they're living beyond their means. We all know the banks and mortgage companies are in this mess because of their unadulterated greed and not because some unexpected expense suddenly came up. And borrowing $38.1 BILLION in one week! How much money will these firms have to make in order to pay this debt off? My other concern is how on earth is our government lending all this money when we're trillions of dollars in debt and gaining more every single day? At some point won't the government well run dry? I just can't wrap my mind around how all this money is being lent when it really doesn't exist - we're running in the red so how can it exist. OK, my head has officially exploded trying to figure all of this out. :nuke