https://assets.publishing.service.gov.uk/media/63fc8f198fa8f527f7342f32/fig_2.svg IVAs have had something of a renaissance in recent years, largely driven by similar gaps discovered (current version is different advice standards for insolvency advice and regulated debt advice meaning marketing them to vulnerable people much riskier than it would be otherwise).
You have written on this subject in the past, have you not? But from a slightly different perspective. Paraphrasing (I hope not traducing!), you've noted that high-trust societies with a reputation for honesty are good habitats for scammers, because the value of trust and honesty is a lower cost of doing business with strangers and therefore a higher propensity to do so. On the other hand, low-trust societies are low scam, but pay high frictional costs.
As with medicine, the dose makes the poison; lots of things aren’t a problem until they’re scaled up and then suddenly they’re a big problem. I wonder if that isn’t something that has been exacerbated by the internet. Easy access to scale and all that.
a lot of internet weirdness happens like this - it wouldn't be a problem, but it's possible to automate it, and now it's a problem.
https://assets.publishing.service.gov.uk/media/63fc8f198fa8f527f7342f32/fig_2.svg IVAs have had something of a renaissance in recent years, largely driven by similar gaps discovered (current version is different advice standards for insolvency advice and regulated debt advice meaning marketing them to vulnerable people much riskier than it would be otherwise).
Re: last paras, as I was reading I was just thinking "Carillion/Capita"
Endogeneity, the root of materiality.
You have written on this subject in the past, have you not? But from a slightly different perspective. Paraphrasing (I hope not traducing!), you've noted that high-trust societies with a reputation for honesty are good habitats for scammers, because the value of trust and honesty is a lower cost of doing business with strangers and therefore a higher propensity to do so. On the other hand, low-trust societies are low scam, but pay high frictional costs.
As with medicine, the dose makes the poison; lots of things aren’t a problem until they’re scaled up and then suddenly they’re a big problem. I wonder if that isn’t something that has been exacerbated by the internet. Easy access to scale and all that.
Brings to mind the mortgage industry in 2008