4 ms·
I'm pretty sure taking out a loan that you intend to default on is fraud, but making a contract with someone that you expect to be very profitable to you is not
by cbr 9y ago
I'm pretty sure taking out a loan that you intend to default on is fraud, but making a contract with someone that you expect to be very profitable to you is not.
- e0 9y agoWho said anything about taking out a fraudulent loan?
- cbr 9y agoI was responding to "There should be no more shame in choosing to default as there would be for choosing to exercise a stock option that causes your counterparty lose all his money." The idea is, if "default" were just a neutral acceptable option then we wouldn't think of it as fraud if you took out a loan that you planned to default on.
- analog31 9y agoIf I were to look for fraud anywhere, I'd start by looking at the people who give inflated ratings to bonds.
- lmm 9y agoStart there, sure, but don't stop there.
- candiodari 9y agoWhat about politicians that use the government to take action against firms when they lower particular ratings ? Are those committing fraud too ? What, incidentally, about politicians who force pension funds to buy bonds "they like" by legal means ? (at least 200 politicians in current service are guilty of this) These are US government bonds, by the way, if a default happens with them, the sort of organisation that will suffer the most is US pension funds. [1] https://en.wikipedia.org/wiki/United_States_federal_government_credit-rating_downgrades https://en.wikipedia.org/wiki/United_States_federal_governme...
- malnourish 9y agoIntent to default sure, but realizing that defaulting is the best option after your circumstances have changes is not fraud.