1820 loans..redo?

[J C Lawrence]

I've been musing tweaking how loans function. Currently:

If CompanyA buys CompanyB and its loans, there's no effect on
CompanyA's stock price as it assumes those loans. Similarly, if
CompanyA is over its loan limit after the acquisition and thus must
repay the excess loans, there's still no effect on CompanyA's stock
price as the excess is repaid (unless the director has to contribute
to the repayment). It is only when CompanyA later repays the loans
within its loan limit that CompanyA's stock price moves up.


A result of this is that stock prices are less volatile, but also that
loans are more attractive. For instance CompanyA can buy CompanyB in
order to acquire yet more loans so as to get more stock bumps as it
repays them -- essentially CompanyA can "buy" extra stock bumps via
acquired loans.

In contrast the more consistent structure is:

Stock prices are always hit as loans are acquired or taken, and are
always improved as loans are repaid. Simple and always symmetric.


The result however is that there are no fiddly bits with loans and the
process of valuation and use of loans is straight-forward. I like that
the current system values trading some tempo for stock value, which
seems a reasonable trade that's lost in the symmetric system.

Next, I've been thinking about how the income tax rate is tied to loan
activity. That was interesting when loan activity varied widely from
game to game -- but that's no longer true now that we know a bit about
how to use loans. What if loan interest followed a mostly fixed
trajectory from the start of the game? eg:

A card or cards are flipped during game setup that give a number
sequence ala: SR1: 10%, SR2: 40%, SR3: 50%, SR4: 20%., SR5: 30%.
With other cards maybe having a different sequence.


Which seems fiddly and high overhead to me. Or I could tie income tax
rates to the train chart. eg:

yellow: 10%
green: 20%
blue: 40%
brown: 50%
red: 30%
gray: 40%


It adds a whole new row of numbers to the already number-heavy train
chart...but it is nice and simple...

Thoughts?

-- JCL

[Bruce Murphy]

I prefer nailing it to the train chart for the lack of fiddle and the obvious forward-looking part. I would suggest that 50% seems too high.

B>

--

Bruce Murphy - packrat