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This and the parent comment seem like pretty strong arguments. If the main differentiator is supposed to be whom banks decide to lend to, this doesn't seem to b

by bo1024 7y ago

This and the parent comment seem like pretty strong arguments. If the main differentiator is supposed to be whom banks decide to lend to, this doesn't seem to be working. They are extremely risk-averse about innovating lending or using criteria beyond credit score (to preempt accusations of discrimination, I was told, which is ironic since credit score is a hugely discriminatory system). Anyway, I think I like the idea of a government-centralized deposit and monetary transfer system. This is the direct electronic equivalent of cash. A single national interest rate seems reasonable since current saving account rates are essentially set by the reserve rate today anyway. But I feel there must be a better privatized lending system than the current one though.

thulecitizen 7y ago
There are many calls for public banking by people such as Ellen Brown [1], as well organizations such as the MetaCurrency Project [2] and Positive Money [3]. [1] https://ellenbrown.com/what-are-public-banks-and-how-do-they-operate-an-introduction/ https://ellenbrown.com/what-are-public-banks-and-how-do-they... [2] http://eric.harris-braun.com/blog/2007/05/14/id-53 http://eric.harris-braun.com/blog/2007/05/14/id-53 [3] https://www.youtube.com/watch?v=ZzCegQVljdY https://www.youtube.com/watch?v=ZzCegQVljdY
listenallyall 7y ago
What is actually ironic here is commenters on a technology-driven site dismissing the OG of algorithms used to optimize a real-world, complex business problem -- the FICO credit score. Long before PageRank or Netflix's $1 million prize or any HFT firms, Fair, Isaac & Co. designed a revolutionary, data-driven product that massively reduced banks' lending risk while saving them enormous amounts of time. It also removed bankers' personal biases out of the equation. While it may not be perfect, nobody has come up with a better system and adoption is near-universal, with many more applications than it was originally designed for.

by bo1024 7y ago

thulecitizen 7y ago

There are many calls for public banking by people such as Ellen Brown [1], as well organizations such as the MetaCurrency Project [2] and Positive Money [3]. [1] https://ellenbrown.com/what-are-public-banks-and-how-do-they-operate-an-introduction/ https://ellenbrown.com/what-are-public-banks-and-how-do-they... [2] http://eric.harris-braun.com/blog/2007/05/14/id-53 http://eric.harris-braun.com/blog/2007/05/14/id-53 [3] https://www.youtube.com/watch?v=ZzCegQVljdY https://www.youtube.com/watch?v=ZzCegQVljdY

listenallyall 7y ago

What is actually ironic here is commenters on a technology-driven site dismissing the OG of algorithms used to optimize a real-world, complex business problem -- the FICO credit score. Long before PageRank or Netflix's $1 million prize or any HFT firms, Fair, Isaac & Co. designed a revolutionary, data-driven product that massively reduced banks' lending risk while saving them enormous amounts of time. It also removed bankers' personal biases out of the equation. While it may not be perfect, nobody has come up with a better system and adoption is near-universal, with many more applications than it was originally designed for.