Nostr Web Client

I just don't see how the premium wouldn't grow over time, as the defaulted debt piled up. You couldn't keep rolling it into the interest on the next loans for long, before those loans became untenable.

You would probably need an insurer and he would need a reinsurer, and the reinsurer would need the state and/or a manipulated currency.

That's the next question, how to finance insurance? Insurance currently finances itself over dues (they could still get that) and over investment (which means they'd have to run the same lending game as the people they're insuring) and over government backstops (taxpayer bailouts, inflation).

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

lol, all these safety measures... no, you have to change the culture about this, that's why it works in the middle east, because nobody even tries to get a loan without high confidence of being able to pay it off

and there is also equity financing too, this is another type of loan that becomes more common in a hard money system without usury, where the project is of benefit to many and the default risk is distributed across the pool of lenders

scaling does cost more trust and has a higher risk, which is also why you see these multi death gigacorporations these days, they couldn't exist without the government protecting them from being prosecuted for all kinds of sins

Reply to this note

Please Login to reply.

Discussion

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

also, have you ever borrowed before?

i haven't, and i never will, unless i'm really confident i'm on a winner

debt litigation is nasty

Laeserin 1y ago

Only debt I ever had was a mortgage and we had it during the big housing crisis and couldn't refinance, even though house prices were falling because we already had a low interest rate. Absolute nightmare.

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

yeah, i personally don't see any reason to get a loan for anything... if i can't stack enough to do it, it can't be done, that's my rule

Laeserin 1y ago

We moved, after 5 years, and we were so relieved to just be able to sell the house and not walk away in a hole. Lots of people couldn't sell because they were upside-down on their loans.

Under Bitcoin, almost everyone would be upside-down on their loans.

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

it's a bit like falling off your bike when the training wheels are removed, strong learning motivational psychology kicks in

Laeserin 1y ago

Everyone is so casual about chronically upside-down loans, but I suffered under one and they caused widespread unrest. That is some seriously nasty shit.

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

and just like that, it was the last time you rode fast on a gravel road, gravel rash will do that to you

Laeserin 1y ago

The culture only changes if there is some understanding of why we shouldn't want interest-bearing loans to be widespread and why nonrecourse (fully-collateralized) loans, equity financing, grants, profit-sharing, or simply paying for things are almost always the better option.

Most normal people can't see any downside. It seems like free money and you get to do your own thing and be Mr. Big Playa. They can't even understand the basics of how Bitcoin works or how Nostr is a protocol.

We can't do like Muslims do and just issue a fatwa or basta. People will want to know BUT WHY?

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

agreed but nothing like a live demonstration right?

bitcoin lets you have a bubble of hard money economy and when everything else is failing we are all building our citadels and hiring our private security to patrol the borders of our villages and they'll get it

Laeserin 1y ago

Well, I guess so, but I can at least inform other Christians that this sort of thing was eschewed for most of our history, even if it isn't considered outright sinful, for good reason.

It's the easiest way to make money, once you figure out how to privatize your gains and socialize your losses. Just need some clever AI crunching the numbers.

And they always figure out a way, in the mid-term. And then you have sunk costs and rigid structures and just sit there, watching everything collapse in slow-motion and wondering what happened. Bitcoin would just speed up the collapse.

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 1y ago

this is what i mean when i say there's no point in participating in the rigged game of democracy

the game has been long utterly controlled by the plutocrats who own the banks who pay the government to make the rules suit them

the sooner atlas shrugs the sooner the world has to deal with its sins

Laeserin 1y ago

Christians used to get their interest-bearing full-recourse loans from the Jews and then they would just murder the Jews or run them out of town, when they got tired of paying them back. It was a whole, macabre economic cycle.

Let's just not do that, this time. 😅 🤷‍♀️ Just save up and pay for the stuff you want and stop pulling consumption forward.