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 I personally think that posting papers online is a great idea. Often, I find myself interested in what other people write about, and ordinarily, I wouldn't be able to. Although I don't know if positng papers online invites discussion-personally I don't think there will be that much feedback because the paper has already been submitted-but it serves as a good opportunity for me to see situations from all different perspectives. 

However, I'm aware that some of us are not too keen on others reading our work, and although I don't view this as a an intrusion on privacy, i can understand if others feel that way.