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What this story actually

Submitted by Sarah on October 16, 2007 - 11:02.

What this story actually shows is how easy it is to overlook transaction costs. Setting aside the time he would have spent waiting for the bank to check his bona fides (not inconsiderable, and must be counted), before the bank would take physical delivery of a $250K piece of collateral, they would surely insist on his signing some sort of custody agreement--which he would need his lawyer to read and perhaps negotiate over (who would be responsible if anything happened to the Ferrari while he was away?). Right there, he's out several hundred dollars.

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