Getting loans.. (WAY off topic)

[William T Wilson]

On Fri, 28 May 1999, David A. Cooley wrote:

> >So, what's Check Kiting?
> 
> That's where you write a check, buy something get cash back, deposit the
> cash in the bank, write another check etc... basically trying to write
> checks and deposit the money to stay ahead of all the checks because there

The difference is that with check kiting, if they catch you, you will end
up without enough money to cover it all.

In this little credit-building scheme, even if you stop making payments
altogether, nobody is out any money because you put the money up in the
first place.

> of the loan and puts you in default.  the money has to stay there
> until the loan is paid off.

It does, because you are using the money you borrowed from bank A as the
collateral for bank B.  No particular dollar actually gets used twice.