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Florestan Bronstein
24th Imperial Crusade
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Posted - 2011.09.02 20:15:00 -
[1]
there is little you can do when being a mediocre scammer is still better than being a failed businessman...
we all saw the ridicule you can expect when you spend countless hours running missions to repay your debts - why not save yourself that humiliation and scam?
some food for thought: the US has a tradition of government & FED stabilizing the financial system by brokering the buyout of failed/insolvent banks by larger competitors; neither government nor central bank would directly intervene but they would enable one of the few large banks to buy all liabilities of the failed bank and continue its business (by extending cheap credit to the large bank).
That system worked well for a long time.
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Florestan Bronstein
24th Imperial Crusade
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Posted - 2011.09.02 20:38:00 -
[2]
Edited by: Florestan Bronstein on 02/09/2011 20:42:09
I think RAW's view is a little overly pessimistic (i.e. I believe one can work with people who might consider a "fake" scam to avoid having to declare their failure as businessmen).
If the issue is recognized early enough and more due to unfortunate circumstance than sheer incompetence a debt/equity swap might help.
Investors can propose to convert their loans into equity - thus signalling their long-term confidence in the business manager and removing the interest payments while the business struggles/is rebuilt (while taking a larger cut of profits later on).
Simple assurances to roll over loans if necessary can probably be of help in many situations (and comes without social stigma) but it all depends on the manager signalling that his business is in some trouble first.
regular performance audits can ofc force this disclosure but as the investors' strategy has to center around avoiding the manager's public embarrassment and signalling him their confidence/support this may not be a feasible option.
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Florestan Bronstein
24th Imperial Crusade
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Posted - 2011.09.04 06:55:00 -
[3]
Edited by: Florestan Bronstein on 04/09/2011 06:56:18
 Originally by: Shar Tegral
a sharp mind wants to be exercised [implied: at every single possible occasion].
[citation needed]
(same goes for VV's awfully general & absolute claims on constructive vs destructive people)
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Florestan Bronstein
24th Imperial Crusade
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Posted - 2011.09.06 09:04:00 -
[4]
Edited by: Florestan Bronstein on 06/09/2011 09:05:02
Person A: "Playing Roulette for reasons other than pure joy of gambling is pointless. Never do it with the intention of earning money."
Person B: "But I earned over $9,000 playing Roulette yesterday. Clearly playing Roulette to make money is not pointless for all persons at all times. You are wrong!"
pointless discussion is pointless.
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Florestan Bronstein
24th Imperial Crusade
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Posted - 2011.09.06 09:45:00 -
[5]
Lack of secondary market and thin primary market means you are likely to incur a huge opportunity cost while waiting for some new investment opportunity (that is suitable to your strategy) to pop up after your old investment has been paid back in full.
I guess that this effect alone puts many strategies that are based solely on investment into the negative (relative to comparable in-game options).
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Florestan Bronstein
24th Imperial Crusade
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Posted - 2011.09.06 12:03:00 -
[6]
If one single counterexample is enough to satisfy your requirements of logic how do you distinguish between that case being due to luck or a working strategy?
In any case have fun with your intellectual ************ ... when you are done you will probably have reached agreement on a set of ridiculously narrow logical statements (that nobody cares about) while leaving the real questions (viability of MD investments for the general investor, value of present MD as an institution for the community) unaccounted for.
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