Do you believe that banks are essentially lending freshly printed money?
If this is true, then they can lend out any amount of money, and always come out on top – because they aren’t really putting anything at risk (except the cost of printing the dough)! They can just accept monthly payments with interest to take the liquidity back out of the market and make their money at the same time. Which also means that if the bank did not exist and the printed money were paid directly to you, you could eliminate the middle man and pay no interest. Am I getting this wrong?
What is the FED new lending facility all about?
If a company puts up mortgage back securities as collateral for a loan from the Federal Reserve, what happens if the owners default? Are companies 'refi' their debt with this new liquidity? If companies already wrote off their bad loans, how can they claim it as collateral?
Bad Credit Debt Management and Consolidation
Everybody loves to use their credit card, there’s no denying that. Credit cards are safer to carry with you compared to cash, and they are a great way to manage your money with more liquidity. But as a result of their ease of use and bad spending habits many people find themselves stuck with endless credit card debt.
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