Ok sort of.
The government is giving banks money with zero % interest to allow them to give out loans.
This is little risk to the banks if they throw on an insane interest rate in return.
Blockbuster is on the verge on bankruptcy.
They have $154 Million in assests and they owe over $600 Million in debt in whcih over $300M must be paid by August to Chase Bank. They other half is due in early 2012.
They just reported on Thursday that their 4thQ was a $360M LOSS.
Let me sum it up for you:
Blockbuster has $154M on hand
They owe $636M total currently to banks.
The last report earning was NEGATIVE $360 Million.
Any chance a bank would loan them money 2 years ago: NO
But now a bank is willing to give them the money to pay off the loan of $300M to keep them in business and slap Blockbuster with a 14% interest rate.
HOW CAN THEY PAYBACK $300M TO A BANK WITH A 14% INTEREST RATE AND THEY OWE ANOTHER $300M ON TOP OF THAT???
SIMPLE THEY CAN'T. THIS IS JUST PROLONGING THE INEVITABLE.
Our economy is never gonna get better with this type scenarios.
The government is giving banks money with zero % interest to allow them to give out loans.
This is little risk to the banks if they throw on an insane interest rate in return.
Blockbuster is on the verge on bankruptcy.
They have $154 Million in assests and they owe over $600 Million in debt in whcih over $300M must be paid by August to Chase Bank. They other half is due in early 2012.
They just reported on Thursday that their 4thQ was a $360M LOSS.
Let me sum it up for you:
Blockbuster has $154M on hand
They owe $636M total currently to banks.
The last report earning was NEGATIVE $360 Million.
Any chance a bank would loan them money 2 years ago: NO
But now a bank is willing to give them the money to pay off the loan of $300M to keep them in business and slap Blockbuster with a 14% interest rate.
HOW CAN THEY PAYBACK $300M TO A BANK WITH A 14% INTEREST RATE AND THEY OWE ANOTHER $300M ON TOP OF THAT???
SIMPLE THEY CAN'T. THIS IS JUST PROLONGING THE INEVITABLE.
Our economy is never gonna get better with this type scenarios.
