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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: nihil who wrote (52424)	3/5/2000 3:50:00 AM
From: wonk	Respond to of 122087

...f a nation wishes to encourage entrepreneurship, it will develop some way of relieving debtors without robbing creditors. Hard to take a risk if one might be imprisoned or sold into slavery for making a bad investment.... Notwithstanding a lot of political 'heat' to the contrary, the bankruptcy code works pretty well. I think original point - repaying debt even though no legal obligation exists - has gotten a little obscured. Long time ago, I was taught the four C's of estimation of Credit Risk. Credit analysis assesses the willingness and the ability of the applicant to repay. The first C is "...Character. The quality of desiring to repay debts when due is ranked above all other considerations. Of course, honesty is a necessity, but character implies integrity and empathy for the lender's position as well...." Commercial entities expect that some loans will go bad: fact of business, fact of life. They expect that some debts will be discharged: that why one keeps loss reserves. Nevertheless, they wish to lend to people who believe in the moral imperative to repay: who will sweat blood to do so - even if there is no legal obligation to do so. Those people can come back to the well again and again and again. ww