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Trades aren't settled immediately. Finance runs on various forms of promises, basically.
by rags2riches 6y ago
Trades aren't settled immediately. Finance runs on various forms of promises, basically.
- jkhdigital 6y agoI’ve never heard a simpler statement of the fundamental Achilles’ heel of modern finance: “various forms of promises” The system has become so intertwined that when someone breaks a promise, it’s too disruptive to actually hold them to account so we just paper over it to keep the wheels of commerce rolling.
- sooheon 6y agoWhich is a form of hostage negotiation. Promise breakers are incentivized to profit as much as possible from broken promises as long as they can hold the system as a whole hostage.