RE:Math question for HCG bagholdersPoorly illustrated.
I have 1 Dollar, Loan out 20, borrow 19 from street to keep the book balanced.
My dollar is leaving penny by penny. I need to keep it liquid, not to fund new deals, but just to keep those people I got my $19 from happy.
Now my dollar is almost gone, I need to borrow more so I can breath. I need to take this deal that will give me $2, but I lose a leg and an arm. If I don't pay them back I lose $3 more.
In the fortunate event of me walking out of this alive in a few months, I still have to worry about the $20 I lend out, because even though I still have a few quarters and a dime left in the bank book, I might not get back the full $20 if the storm comes.
And this is when the poop storm really comes...