There were times when making a person despair to some extent could be a people-strategy.

For example, when your distant acquaintance asked for a ten grand loan but you could only lend him one, you couldn't tell him directly that. It would make them think you were being insincere.

The better option would be to tell them how you were worse off than they were and had a debt yourself, or that some other friend had borrowed money for three years and never repaid it.

And when that mere acquaintance