> Danny wrote: > And if your venture capital system is available as well, then I have all > possible choices, just in case I doesn't want to carry all the risk. > > Exactly, if both options exist, it is likely that the VC option would over > time largely replace the commercial banking option in all fields > practicable, ie. there are likely to still be short-term loans of over a > month and under two years.
Robert, That sounds much better to me. The market will sort it out and there is no need to make borrowing illegal. In fact if borrowing with interest exists alongside the VC system then both will be competing with each other, and this will force the VC people to fork out a good service if they want to be succesful. By making interest illegal you are giving the VC a monopoly on financing, and that will mean not so good conditions for the person who needs financing. As far as I know the VC option does exist in many Western countries , and quite succesful in some places. But I still don't see how VC would serve the person who needs money to repair his car. And which system will be more succesful if both options are available will not only depend on which system is the best. It will also depend on the risk profile of the average citizen, and that will vary from country to country. > Now, can I lend anyone money at 3% per month?:o) Watch out! You may get candidates. And you don't want to burn in hell, do you? :-) > The main item that Danny and you seem to ignore that in constructs > involving rent, etc. the ownership doesn't change until the item is fully > paid for and, possibly the most important item: There is nothing > resembling compounding interest. Wait a minute. Things may be different in other countries, but I used to run a shop in Belgium and we routinely sold items(consumer durable goods) with the customer asking for financing from the bank. In the contracts that they signed with the bank it was always clearly stated that the item they bought remained the property of the bank until the loan was completely paid. They were not allowed to sell the item in second hand before the last payment on their loan, that would be considered theft and brought to court. So, the ownership only changes when everything is paid for. This is because the bought item itself is the collateral for the loan. (nearly everyone qualifies for this types loans in Belgium, even the jobless) In fact we could as well say that the interest this person pays is in fact rent he pays to use the item until it becomes his own at the end of the contract. Ah, now I have given you a great business idea how to offer consumer credit in Malaysia without using the word interest. And there is no question about compounding interest, because you only pay rent (interest) on the portion of the item that is not yet paid for. Thanks for an exceptionally civilized discussion. You see it is possible to talk about things without calling each other a "thug" as soon as there is a disagreement. And with more fruitful results. Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
