From: pgreenfinch <pgreenfinch@...>
Subject: [Behavioral-Finance] The debt related logical fallacy
To: Behavioral-Finance@yahoogroups.com
Date: Saturday, July 4, 2009, 5:56 AM

This fable seems to be the craze
http://scienceblogs .com/evolutionbl og/2009/06/ an_amusing_ brainteaser. php
Of course, the trick is that it is assumed that
from the start everybody has zero net debt (equal
amount owed and amount lended.
So obviously a compensation that would cancel all
debts can take place even without the tourist and
its magical 100 $ bill.
The hotel owner could have used one of its room
as a discreet clearing house ;-)
But that outrageous fable seems to persist, and even
bring macroecpnomic interpretations by self appointed
pundits.
Peter