Let's say I want to lend $1,000. A white man has promised to pay back the $1,000 plus 1% interest. A black man has promised to pay back the $1,000 plus 6% interest. Who would you lend the money to and why? Please, let's not make this about race.
NOTE: in this hypothetical situation, you must lend $1,000 to only one of the two men.
the black man, I get greater return
isn't this obvious
Neither. For private lending like this you need at least a 10% return to even consider it.
Black Kid wrote:
Let's say I want to lend $1,000. A white man has promised to pay back the $1,000 plus 1% interest. A black man has promised to pay back the $1,000 plus 6% interest. Who would you lend the money to and why? Please, let's not make this about race.
NOTE: in this hypothetical situation, you must lend $1,000 to only one of the two men.
Obviously the white man because we all know the black man isn't going to pay it back. In fact, he'll probably take the $1,000, and you'll never see him again.
lol! That's what I was waiting for!
Black Kid wrote:
Please, let's not make this about race.
You get a 6/10 for this line. I admit I chuckled.
lol! That's what I was waiting for![/quote]
Yes I know. I think we all knew what you wanted out of this. "Please don't make this about race" yet you listed race in the first post.
However, my statement hold true.
Neither, because I don't HAVE 1000 bones to lend.
I would lend them $500 each at 12%.
This isn't about race it's about making cash and covering ass.
I would include a default clause which would incude a share in the Crack operation.
you wouldn't lend either any money
you need to amortize the risk over multiple clients....if each person has a 10% chance of defaulting, then if you lent 10 people 1000$, you'd need to make 1000$ interest on the 9 people who paid you back, 1000/9=111/1000*100=11.1% interest is what you'd need to charge to break even
if you were only lending 1 person the money, you'd have a 10% chance of losing everything.....and that's a stupid risk for 1% profit
dude this is letsrun. you clearly just pay it to the whtie guy and everything will be fine. this isnt about race, its just about common sense that the white guy will do whats right and pay it back.
Why would you ask this question and then at the end say "let's not make this about race?" Obviously by asking this question, where every variable is the same except for two, the race of the people and the amount of interest earned, the only way you can argue for one or the other is by the stereotypes placed on the races by society. I would conclude that you are indeed a troll.
Lol. Not make it about race? Who wins the Auburn-Oregon game? But please, don't make it about football. But to answer your question, there is no way you can know. What is the risk of default on the terms of the loan? There is absolutely no information you provide to assess that risk.
Black Kid wrote:
Let's say I want to lend $1,000. A white man has promised to pay back the $1,000 plus 1% interest. A black man has promised to pay back the $1,000 plus 6% interest. Who would you lend the money to and why? Please, let's not make this about race.
NOTE: in this hypothetical situation, you must lend $1,000 to only one of the two men.
Does the white guy go to church or temple?
Lets BReal wrote:
Does the white guy go to church or temple?
Nowadays, no, not much.
He goes to church.
Black Kid wrote:
you must lend $1,000 to only one of the two men.
That is so sexist!
BTW, if you do lend the $1000 to either, you will get what is called a thousand dollar lesson.