Monday, February 8, 2010

Is this statement correct of false when it comes to job creation on borrowed money?

In order to create jobs when borrowing money you must earn a return greater then the interest borrowed at. If you earn a return less than the interest borrowed at, you will actually decrease jobs.Is this statement correct of false when it comes to job creation on borrowed money?
CORRECT!Is this statement correct of false when it comes to job creation on borrowed money?
This statement is true...but the outcome can be false...the interest borrowed is the lenders unpredicted fixed standard return that does not pan out sometimes in the end..these type of loans stimulate the recession and market crashes and mortage collaspes of the early stages of our recession.





there is no flexibility and there are cracks in the savings and loan market especially the credit Market there are no incentives


and interest acured on credit balances ...when making payments on your loan; your payments do not acure interest to double your repayment power...





borrowers had excellent credit scores and history but the outcome didnt reflect the score in the future...banks assume and reflect a loss


these outcomes are not assumed and equations are cracks that consumers fall in after they are widening without speculation..
Using borrowed money to pay for something you can't afford - is how DODD and FRANK got us into trouble with FANNIE MAE - has America Learned NOTHING?
Correct in theory.
That is the idea. Most of the 'money' lost in this collapse didn't really exist in the first place.

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