Counterintuitive problem: People in a room keep giving dollars to random others

Re:Counterintuitive problem: People in a room keep giving do... by coldtea on Sunday July 09, 2017 @12:09PM (#14730407)

There are loans without interest. An extra cost/profit is calculated up front (that's e.g. how Murabaha works in islamic banking which prohibits interest). The law still enforces the person to pay back the original amount (or face the repercussions).

(Plus people lend money and tools and whatever all the time with neither interest nor legal guarantees).

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Re:Counterintuitive problem: People in a room keep giving do... by ralfd on Sunday July 09, 2017 @03:50PM (#14731332)

Isn't that just paying the interest in the beginning in full, instead of over time or at the end of the loan?

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Re:Counterintuitive problem: People in a room keep giving do... by coldtea on Monday July 10, 2017 @02:45AM (#14733863)

Obviously no, because it doesn't increase.

Like with credit cards, most of the money on loans is not paid on the default interest and with the perfect payment schedule, but on late payments.

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Re:Counterintuitive problem: People in a room keep giving do... by arkis22 on Sunday July 09, 2017 @04:35PM (#14731539)

interest by another name

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Re:Counterintuitive problem: People in a room keep giving do... by coldtea on Monday July 10, 2017 @02:46AM (#14733867)

Yes, and by another mechanism with different attributes.

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