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Money as Debt

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Nov. 12th, 2007 | 01:36 pm
mood: complacentcomplacent

This seems to bring together a lot of things I knew individually to be true about money, but hadn't really considered all together:
http://video.google.com/videoplay?docid=-9050474362583451279

I'd be interested in hearing any comments. The simplest things seem to inspire controversy -- people get labeled as crackpots even when they're just referring people to primary sources, definitions, and written laws. There's too much la la la I can't hear you in the world.

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Comments {26}

Triple Entendre

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from: triple_entendre
date: Nov. 13th, 2007 06:55 pm (UTC)
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I'm getting some hints from here and there that entities which have the power or responsibility for making sure 'consumers don't go batshit crazy with credit' are entities which also profit from not doing so in the short term.

re your anecdote: so did they spend significantly more money on efforts to convince you to stay than it would have cost them to just pay you more? Seems like the smart money would have been to give you a double+ raise iff you signed an agreement to stop talking about it to anyone.

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Triple Entendre

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from: triple_entendre
date: Nov. 29th, 2007 10:43 am (UTC)
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...and I read a piece in last Sunday's NYT going into some depth on this. A consumer using too much of the credit they have access to is one thing. Intentionally selling someone a loan that they can't afford by any reasonable standard is another. Designing the terms of the loan so that it is viable for a short while, but then rapidly exceeds what they can afford is, at the very least, cynical. Tailoring the loan agreement and its presentation to conceal this situation is clearly wrong. Aggregating and reshuffling these "designed to fail" loans and selling them to a third party as if they were actually sensible financial instruments is large-scale fraud.

I'm pretty sure there are simple ways to regulate the blatant foolishness without impeding the overall markets.

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