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Re: [Gnu-arch-users] OT: Slavery???

From: Tupshin Harper
Subject: Re: [Gnu-arch-users] OT: Slavery???
Date: Mon, 24 Nov 2003 03:48:44 -0800
User-agent: Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.5b) Gecko/20030901 Thunderbird/0.2

Peter Conrad wrote:


On Mon, Nov 24, 2003 at 04:39:19AM -0600, Charles Duffy wrote:
It may be to my advantage to purchase a car on a payment plan for
$200/month -- but it would be far more to my advantage to drive off and
pocket the $200.

this boils down to risk management. If the car dealer runs a high risk of
losing the car he will not offer you such a contract. OTOH, if very few
people "drive off" he'll be able to make a profit, so he might take the

That's what credit card companies do: they accept a certain amount of fraud,
because if they don't the only remaining option is to shut down their businesses.

If this is an attempt to further argue your point that most contracts work well without enforcement, then it fails spectacularly. The simple observation that any lender's risk management equation is fundamentally affected by the level of fraud which in turn is directly affected by the probability of enforcement blows the argument to pieces.


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