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How About A REAL Loan System Like This? (White Giant)

Simcountry: Simcountry Bulletin Board  How About A REAL Loan System Like This? (White Giant)

Roger Lee (White Giant)

Monday, November 22, 2004 - 01:17 pm Click here to edit this post
I was reading a thread in here titled "SAVINGS ACCOUNTS" and got to talking about this with my roomate.
The Offer Loans feature actualy isn't a loan at all.
It's a Bond, and it really should be named as such.

Further more, the following 2 points need to be altered and added to the Offer Loan section:

This option allows a player to offer loans to a specific country, corporation, or CEO.
It would contain the following fields:

1.a) a field for a country or corporate/enterprise(CEO) name to be entered by the player who wants to offer a loan.

1.b) a field for interest rates of the loan where the player offering the loan can set the interest rate that they are offering.

1.c) a field for the amount of months the loan will have before it has to be paid off.

1.d) a field for the amount of money being offered in the loan.

This option should be designed in the likeness of the following points.

Players should be able to search for another country, corporation, or CEO (enterprise) to request a loan from.
Players should be able to see a list that simply tells the player how much money other players have.

This list should be ordered from countries, corporations, and enterprises(CEO's) with the highest amount of money to lowest amount of money.

Once the requesting player has decided who they wish to request a lone from, they should be able to click on a green text link to the right of the listed country, corporation, or enterprise(CEO) that simply reads, "Request Loan".

The player that owns the country, corporation, or enterprise (CEO) should receive a message that lets them know that another player is requesting a loan.

The players name (be it a country, or enterprise) should be a green text link to their country or enterprise so that the player that is potentially going to serve the loan can review the requesting players country, corporation, or enterprise (CEO) so and determine if they want to offer a loan to the requesting player, how much they are willing to offer vs. the amount being requested, at what percent interest, and how long they are willing to let this player pay them back for the loan.

The providing player should then be able to offer the loan through the same system as defined above in point 1, "Offer Loans Directly".


The first result is that this method completely balances the actual player market as players with high amounts of money, in the trillions, but have nothing really to spend it on, will be able to offer loans to players who need money and have none.
The loan providing players won't lose money in the deal because they will be gaining money, in the end, from the interest gained from the player who has taken the loan.

The second result this has is that the World Bank will be less required, which is really a good thing because if we wanted the computer to run everything then we might as well watch a TV show about the economy rather than play a game about economy.
There is no reason to let the computer-ran World Bank offer loans and not allow players to do the same because what we end up with is a player economy that cannot create and maintain a simulated economic flow of money that will rise and fall properly in accordence with the player markets actual holding of money.

Basically, if Joe and Ron are to represent the player market and Mark is to represent the computer ran World Bank, then it does Joe and Ron no good to go to Mark for money because Mark will never ask Joe and Ron for money and thus, the economic flow of money is being halted.

If, however, Mark was a player in the player market and Joe and Ron came to him for a loan, then the market would flow properly as Joe may borrow from Ron, who has borrowed from Mark. It may even be possible for Joe to lend to Mark with the money he borrowed from Ron eventhough, in the beginning, it was Marks money.
Mark will end up paying an interest, in this one example, on what was once his own money.
On the other hand, he may also make more money back off of Ron who has borrowed from him than he spends paying the loan back to Mark.

This is a MUCH more dynamic system than the present stale and faulty system of relying on the computer for money.

A potential bug can be found here when a player quits before the loan is payed off.

At the same time, however, a balance that makes good solid sense, and free's up the next player comming into the ownership of that country, can be used.

When a player quits the game before they pay off their loans to a player all of their assets can be sold (corporations, government facilities, military if need be, etc..) until the full amount of the loan can be paid back or there is nothing left for the country, corporation, or enterprise to sell.

This "bug" fix would make loan providing players act more in simulation to the actual world loan system as they would like to loan to countries more because they have more assets, while they would be wary of loaning to a single corporation (not a single enterprise...a single corporation) because they have far fewer assets to be sold if the corporation goes belly up on paying back the loan.

Thank You,
Roger Lee,
CEO Stumps Inc

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