Guaranteeing European Loans and Roseville Floor Sanding

Say you borrow somebody money. They borrow it for 5 years and pay an 8% interest rate per year. You hope you get paid back otherwise you are going to be out the money and it is going to be a pain in the butt to get it back. However, what if a third party guaranteed the loan will be paid back to you. For example, say you’re Uncle Sam, who is a very wealthy individual said, “If they don’t pay you back, I will pay you back on the same terms.” Most people who say, “Ok, that sounds like a good deal for me. I loan them money, and if they don’t pay me back my Uncle Sam will. Heck, I might as well try to find another person to loan the money to. Why not, Uncle Sam will pay it back if they don’t. I can get 8% interest on my money virtually risk free. What a deal!” This is what the major European governments are doing right now, they are guaranteeing loans. But doesn’t this sound familiar? Isn’t this how we got into this mess in the first place? Lending institutions loaned money to people with bad credit, and then sold those loans to other people. The lending institutions made money on the loan and sold their risk to somebody else. Not much risk there, so why not just lend it to anybody? This is just creating a bigger problem then we already have. It is funny how people don’t learn from their mistakes. I think the Euro and the Dollar are going to be worthless someday because of this. I would invest in non-dollar assets such as real estate, gold, silver, copper, sugar. Just don’t borrow money to do it. For a free floor sanding estimate in Roseville give me a call.