# David Dinsdale (+8) * * 0 * ReplyShow
3 days ago: May I state an example. There's a Chinese restaurant that makes food, one if it's biggest costumers is an American. The Chinese workers are poor and can't afford to buy enough food for themselves. Now the American costumer says he's broke and wont be able to pay for the food if not someone lends him money. The Chinese workers say "Hey we can't loose our biggest costumer so we lend him the money".
Does this make sense? Or would it make more sense if the Chinese workers would kick out the broke American and eat the food themselves?
* thumb Adrian Azzopardi (+8833) o o +4 o Show
3 days ago: Your analogy needs some modification.
1. The Chinese have a big restaurant specifically built to cater for the big eating habits of the American. If he is broke, then big restaurant is a bad investment. Most business give credit lines to their clients.
2. All the Chinese restaurant workers combined cannot consume or afford all the expensive food the America eats. The American usually pays for everything in the global hard currency (dollar). Its the currency most commodities are priced in.
3. The Chinese restaurant has already allowed the American to eat there many times on credit. If they refuse him food now, there's the chance he won't pay them for the previous times.
4. The Chinese restaurant is hoping that their best client will eventually have money to pay them back.
5. The American is a tough man. The Chinese owners are still scared of him. Maybe one day they can ask for his help if someone bullies them.