Sammy, (ponzi scheme)
If I lend you 100,000.00 and you put it in your bank account. Then you go in a bank to get a loan and they lend you money based on your 100,000.00 as collateral, the bank thinks you OWN the 100,000.00, but do you?
Maybe that is based on the wording of our loan? Instead of saying I am loaning this to you, I say, I am GIVING you this (as long as you give me something back in a year worth 110,000.00). If you don't, I take my money back. Even though I "gave" you the money, do you really own it?
Look up ponzi - rob peter to pay paul. However you want to think of it.