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General Discussion

Tigermoose

(1,898 posts) Thu Oct 3, 2013, 10:40 AM Oct 2013

0

Can the federal goverment take a loan from the big banks to cover its interest if the debt ceiling

If the debt ceiling isn't raised, could the Treasury take out a loan from the big banks in order to pay the interest due? This would be a sort of reverse bank bailout, where this time the banks would be bailing out the government.

3 replies

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Can the federal goverment take a loan from the big banks to cover its interest if the debt ceiling (Original Post) Tigermoose Oct 2013 OP

Ummm...how is taking out a loan not increasing your debt? dkf Oct 2013 #1

Yea, not sure if it would be allowed or not. Tigermoose Oct 2013 #3

My initial guess is no. TexasTowelie Oct 2013 #2

dkf

(37,305 posts)

1. Ummm...how is taking out a loan not increasing your debt?

Reply to Tigermoose (Original post)

Thu Oct 3, 2013, 10:43 AM

Oct 2013

Tigermoose

(1,898 posts)

3. Yea, not sure if it would be allowed or not.

Reply to dkf (Reply #1)

Thu Oct 3, 2013, 10:47 AM

Oct 2013

I just know Obama met with the big bank leaders the other day, and that had me thinking about creative ways out of the debt ceiling mess.

TexasTowelie

(112,226 posts)

2. My initial guess is no.

Reply to Tigermoose (Original post)

Thu Oct 3, 2013, 10:44 AM

Oct 2013

The loan would be considered a debt that the government would owe to the banks.

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