Tony
Bakersfield,#2Consumer Comment
Tue, February 28, 2006
"You apply for a credit card with a limit of, for example, $500. The bank then creates a voucher for that amount, opens an account in your name, and lends you the $500 (or less) that it just created with nothing more than a computer entry (there is no actual money involved). Nevertheless, the account they are debiting has YOUR name on it and legally belongs to you. So they are lending you your own "money." Plus, they now credit themselves with a "deposit" of $500 and use that as the basis for making more loans. If you think this sounds legitimate, try doing it yourself and see how long you stay out of jail.