GhostOnTheHalfShell,
@GhostOnTheHalfShell@masto.ai avatar

This is what I think is a basic question. When a bank sells a home loan it's selling the total value of the loan, which is principal and expected total interest paid minus payments so far, right?

In other words, the sale value is close to

Value = Principal

  • TotalOverLifeOfLoan
  • PaymentsMadeSoFar

https://en.wikipedia.org/wiki/Freddie_Mac

video_manager,
@video_manager@mstdn.social avatar

@GhostOnTheHalfShell

yes, but discounted back to the "present value of money", which is as squishy as it sounds.

i.e., what's it worth to have and use that money now and over time vs waiting for it.

GhostOnTheHalfShell,
@GhostOnTheHalfShell@masto.ai avatar

@video_manager

don’t get me started on the most torturous nomenclature known to man, and just as bad as git or aspect programing.

IRRC opportunity cost is an equivalent concept and captures gains or losses forgone of other options over a current choice. That term comes from operations research.

systemalias,
@systemalias@mastodon.cloud avatar

@GhostOnTheHalfShell @video_manager

So... what’s the opportunity cost of a society that collapses in chaos with all current threats and inequities unmitigated, versus surviving another millennia, by investing in sustainable energy, innovation, and exploration as a species?

GhostOnTheHalfShell,
@GhostOnTheHalfShell@masto.ai avatar

@systemalias @video_manager

burn oil! :blobfoxdevil:

  • All
  • Subscribed
  • Moderated
  • Favorites
  • Economics
  • GTA5RPClips
  • DreamBathrooms
  • thenastyranch
  • magazineikmin
  • Durango
  • cubers
  • Youngstown
  • mdbf
  • slotface
  • rosin
  • ngwrru68w68
  • kavyap
  • tacticalgear
  • ethstaker
  • JUstTest
  • InstantRegret
  • Leos
  • normalnudes
  • everett
  • khanakhh
  • osvaldo12
  • cisconetworking
  • modclub
  • anitta
  • tester
  • megavids
  • provamag3
  • lostlight
  • All magazines