Originally Posted by Limo Wreck
Wow, I'll be sure to avoid you in the marketplace.
Oh my God. What are you talking about? I gave the guy advice. I'm not sure if you are aware of this, but EVERY SINGLE bank in the United States was involved in serious fraud. What they did is allowed people to lie on loan applications. They would then lend the money for the house, hundreds of thousands of dollars, while requiring the borrower to not put down a single penny.
The next step was to sell the loans to Wall Street so they could get rid of the risk. Then Wall Street sold the loans to the rest of the world and basically created the biggest financial disaster in our lifetimes.
Never before in world history had people been able to buy houses with zero down. People took these loans and many then were able to take out a few hundred thousand in home equity loans, if they got in during the rise. Many of these people took out hundreds of thousands of dollars without ever putting in a penny, since their home equity loans were far in excess of the mortgage total that they paid during the time they stayed there.
So, what happened when the **** hit the fan? The banks, and Wall Street asked to be bailed out. They were ALL GOING TO ZERO. That bailout came from public money, which means that every single American Citizen paid for it.
So, if they can do that, without anybody going to prison, then this guy can order a few cards and max them out if the worst case scenario happens. Those are the rules, and he is allowed to order as many cards as he likes, and if he gets into trouble he can use them. And if he goes under he can file for Bankruptcy, as there are no debtors prisons.
The only part he has to worry about, either legally, or ethically, is if he decides to keep a few thousand or more in cash and not report that on the bankruptcy application. If he does that, the damage he does to the world absolutely pales in comparison to the damage that those very banks did.
He will not damage anybody. He does theoretical damage to imaginary people. Those very banks put in place a game with their crummy mortgages that led lots of people to take their lives, and many others to take other people's lives. Many lives were ruined. If he pulls the plug and takes some cash out NOBODY gets ruined.
This is real world stuff. Publicly traded companies pull far more egregious moves than this, as they often max out credit lines immediately before filing bankruptcy, and management and employees get paid with that.