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>is the interest I'll get from saving That's good, but you also must consider counterparty risk. Will these people offering me x euros in 12 months still reali
by ovi256 7y ago
>is the interest I'll get from saving
That's good, but you also must consider counterparty risk. Will these people offering me x euros in 12 months still realistically be around then ? If the counterparty risk is very low, their offer must be considered at face value. If the risk is higher, the present value of the future x euros must be discounted.
- hellisothers 7y agoThe other point (I assume) the OP is making is that they don’t need the money, at all, so if they can get it then go ahead and take the risk. A poorer person _needs_ that money, so it’s less a patience thing and more a calculated risk tolerance thing. But the wealthy do like having it reinforced that they earned their wealth because they’re better...