[MD] No more SOM and no more money!

[pholden at davtv.com]

Quoting craigerb at comcast.net:

> [David M]
> What is the justification for charging interest?
> 
> Risk:  I lend $100 to 11 people.  I know there'll be one person who won't/can't
> pay me back   Therefore, I require $110 from each of the ten who will pay back, so
> that my original $1100 is restored.
> Inflation: $100 will buy me a new suit now.  I lend $100 to someone but require
> them to pay
> back $110 because that's what that suit will cost (because of inflation) later
> when they will pay
> me back. 
> Forebearance:  I lend $100 to someone.  While they have the use of my money, a
> $110 suit I want briefly goes on sale for $100.  I require them to pay back $110
> because that's what that suit will cost (because the sale ends) later when they
> will pay me back.
> Inflation = Risk + Inflation + Forebearance
> That's my riff on interest.  (In memoriam: Milton Friedman, 1912-2006)
> Craig

Great answer, Craig. Yes, we lost an intellectual giant, a true MOQer who
fought to protect and preserve the highest quality of all -- individual
freedom.

Platt
 




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