[Spaceships] Islamic Banking and Financing Spaceships Purchases

[malloyd]

Originally Posted by vicky_molokh

Ideally, credit will usually be available for things that are likely to fail, unavailable for things that are likely to result in bankruptcies. Also, ideally, the cost for debtors who failed to pay up due to their own faults should be significantly higher than the cost to debtors who failed through no fault of their own (e.g. due to a significant shift in inflation of one currency relative to another). Clearly at TL8 of our techpath, things like mass hard-currency debt mis-evaluations are still a thing.

Unfortunately I suspect distinguishing the "fault" of failures requires omniscience, and certainly distinguishing between things likely to succeed and fail in advance does. In any case, why should that be the responsibility of the lender? The borrower presumably should be smart enough not to borrow money for something that is going to fail too. If he couldn't tell, why would the lender necessarily know better?

We do already have an alternate technology that shifts the responsibility some, selling shares. This does protect you from the bad effects of failure to a considerable degree, involves more responsibility for the lender, and consequently it is both more difficult to obtain money this way and cedes more control to your lenders/partners.