General Discussion
In reply to the discussion: Lending money to someone is an aggressive, dangerous act [View all]Yupster
(14,308 posts)I'm an old guy that hasn't borrowed money in a lot of years.
On the other hand, I loan money to companies, cities, water districts, ISD's all the time. I loan $ 10,000 to the city of Indianapolis so they can repair their sewer system for instance.
It's a risky proposition. I loaned money to Lehman Brothers and GM. Both went bankrupt and forget the interest, I didn't even get all my principal back. I loaned money to a young person once to buy a car because he was too young to sign. He made one payment and I ended up paying the rest.
Loaning money to other people is a risky affair. It's even a risky affair loaning money to family or friends as there are two losses there. You may not get your money back and it may hurt your relationship with that person too.
It would be nice if there was a balance to interest rates again though. CD rates are just way out of line getting 1 % for a two year CD. At least you don't pay much tax since you don't make much interest.