Getting loans.. (WAY off topic)

[William T Wilson]

On Thu, 27 May 1999, Stegbauer, Michael wrote:

> > Will be goin out and gettin loans using this $3,000 as my collateral in
> > several banks in series, i.e. deposit the $3000 in one bank, get a loan
> > using it as collateral, take the loan money from the first bank, deposit
> > it into another bank, get a loan on that money etc....

A stunt like this will cost you a fortune in interest.  However, it's
mathematically sound.  Basic economics class will demonstrate that exactly
the same phenomenon is already at work and makes the banking system go.

It is marginally useful for building credit references, but otherwise,
won't do you much good.  The credit bureaus know how much money you have
loaned out total, and they know how many loans you have, too.  And, of
course, you have to pay the interest on the total amount you have
borrowed whether it is in small or large lumps.