[ExI] How do we construct workable institutions and ethical behaviors?

[Stefano Vaj]

On 12 December 2011 19:56, Kelly Anderson <kellycoinguy at gmail.com> wrote:

> 2011/12/11 Stefano Vaj <stefano.vaj at gmail.com>:
> > Moreover, how would those issuing bad mortgage be "thieves"?
>
> If I knowingly make a highly risky loan with the knowledge that I can
> immediately resell it to Fanny, Freddy or some "no questions asked"
> wall street investment banker, pocket my fees, and let the next
> investor down the line be a "fall guy" for my bad decision, then how
> is that not being a thief? I'm at least a con man, selling paper to
> the next investor for much more than I believe it to be worth. I don't
> even see this as controversial. Where's the confusion?
>

This is perhaps a boring technicality, but please understand that I am not
condoning this behaviour in the least.

I am only saying that the crime you might end up indicted for is criminal
fraud to the detriment of your purchaser (even though I am inclined to
believe that the borrower is a more likely victim than a banker who
purchase the loan knowing full well that it is junk, except for the
probability to resell it quickly to somebody else in the same line of
business making a nice profit).

In other words: there are worse crimes than theft, and I suspect that Ponzi
schemes and usury both qualify. If anything because they are much more
dangerous and detrimental both to the public and to their direct victims.

-- 
Stefano Vaj
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