Quote from: grondilu on December 17, 2010, 12:45:39 AM

Quote from: creighto on December 17, 2010, 12:26:59 AM

But corporations are creations of the state, and by proxy, so are stocks and bonds that these corporations release. How, for example, can you ensure that the corporation that you invest in isn't going to deny that you are even an investor without the threat of the force of the courts? Sure, you could sue in a common law court, but how would you get the losing party to pay the judgement if they don't even recognize the authority of the court? Bitcoin works because there is no counterparty risk that is always central to any particular Bitcoin transaction. But stocks and bonds are just promises, and are primarily counterparty risk.

Corporations are NOT creations of the state. They are private associations of people.

Not the way that they exist and operate in our modern world, and certainly not in how they are funded.

Quote

I can't ensure that the corporation won't fool me. This is what trust, reputation, and responsability is about in a free market. If I get screwed, I get screwed. Period. State should have nothing to do with that.

Yes, stocks and bonds are counterparty risk. So what ? It's up to me to price this risk during my bidding.

Fair enough. I think that it's going to be a tough sell for either side of the equation.