The beauty of debt is that it's an agreement that can harm you. It can show you how pitifully naive and stupid and helpless you are relative to the corporate behemoths that rule your life, and you can be rescued from it by (depending on the century) the Benevolent Church or State
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As long as even low-to-moderate risk, high-reward activities are *only* financeable through debt, it's not naive or stupid to take it. Nor is it necessarily exploitative — though education financing is, increasingly so, to the benefit of nearly every actor aside from the student.
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Expect to keep seeing this: an industry entrenches itself via regulatory capture; protected from the elements, it produces less value at higher cost; the government that enabled this panders for votes on promises to destroy it; a nimble new actor presents itself, threatening both
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There may be some applications for ISAs where the risk is high enough that a capped upside isn't feasible. I'm okay with that. Assuming competition is unhindered — as you say — capped options are attractive enough that they're bound to arise wherever they make sense.
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@threadreaderapp unroll this plesse -
Hi please find the unroll here: Thread by
@webdevMason: "The problem with the total-capped ISA model is that it *is* necessarily effective at aligning private corporate + indivi […]" https://threadreaderapp.com/thread/1121091098993025026.html … Share this if you think it's interesting.
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@threader_app compile this please -
Hi, you can read this thread from
@webdevMason here:https://threader.app/thread/1121091098993025026 …
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