| Wednesday, June 11, 2008 - 08:41 pm |
Just out of curiosity I was checking my loans that I have that are still being paid back to me. I notice there are numerous "Closed Corporations" listed that total hundreds of billions in loans that I loaned out to them.
Was there an announcement made that you guys aren't guaranteeing the loans anymore? If I have to worry about my loans not being paid back then I would have to recommend to everyone that putting cash into the loan market is too risky due to not having any recourse for (at the minimum) recuperating the principle that was loaned out. The interest lost isn't nearly as bad as losing our entire principle (the original loan amount).
If I missed the announcement, I apologize. But please clarify again the plans for how the loan market rules apply at this present date and for the future. If we can not assess the risk of our borrowers then we should have (at the minimum) the loan principle guaranteed so we don't lose our initial investment in the loan market. The loans just don't pay enough interest even if it's only a handful of them being lost to closed corps to make up the difference.
In my opinion, and correct me if I am wrong, the loan market is potentially a losing proposition for anyone on the giving side of the loan. I also believe that no loans should be given to trial members or their corps from full members. These are EXTREMELY high risk and we should not be saddled with the burden.
Please let us know your thoughts and future plans and the current situation for outgoing loans to needy corps and countries. I'm not complaining about the interest rates because it's a moot point. I can live with the low interest rates. but not being able to recoup our loss on the principle would be wrong in the Real World and legal action would normally take place in the real world. Loss of the corp to the guarantor of the loan would be absolutely justified if the loan was not paid back. If it was a loan to a country, the loan should be guaranteed by some sort of collateral; assets, state owned corporations, military assets, etc.
I think that if we run the risk of losing our principle, not to mention the interest we would have received, then we should have a collateral screen put up for whoever is receiving the loan to guarantee the loan with some sort of asset(s) that is/are equal to or greater than the original loan amount. I assume that this might be some work for the programmers, but with all the changes in the loan market rules, it seems only fair and also protects the stability and the integrity of the loan market itself.
It cannot be good to worry all the people who put cash into the loan market about whether or not they are going to lose that cash principle. I am seriously considering pulling all my cash out of the loan market and keeping it all in my ceo just to keep it safe from negligent borrowers.
Please let us know your thoughts on this. Thanks.