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Wouldn't they still owe interest to the banks on the money they borrowed, as well as the money they borrowed? I mean if all the money I make goes to the bank to
by bryanrasmussen 8mo ago
Wouldn't they still owe interest to the banks on the money they borrowed, as well as the money they borrowed? I mean if all the money I make goes to the bank to pay off my mortgage my solution is not quitting my job, even though life is not very good under that situation.
- miketery 8mo agoThe business owes the money or the fund. In any case the individuals do not unless they backed it with personal collateral.
- bryanrasmussen 8mo agohmm, yeah ok so the collateral is the business they are buying, I forgot that one.
- klodolph 8mo agoThe analogy has a lot of problems. Imagine you got a loan to buy a bunch of laundry machines to run a laundromat. But your laundromat earns $8,000 a month, and the loan payment is $10,000. You can decide to sink $2,000 of your personal money into the laundromat every month, or you can give up.