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The difference is that the guy living next to you has more to risk by lying. The nature of trust is that you place it in those who are most likely to reward you for doing so. And the fact that it's snake oil is irrelevant; if you already knew it was snake oil, then you wouldn't be trusting anybody about it anyway.
The rest of what you've said seems to be as relevant as the "if a tree falls in the woods" kind of philosophy.
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