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

[Tupshin Harper]

Peter Conrad wrote:

> Hi,
>
> 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
> risk.
>
> 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.
>
> Bye,
>         Peter
>  
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.

-Tupshin