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> Wildcat banking increased incentives for risk-taking and fraud to high levels. The evidence points out that it’s the current banking system that incentivizes

> Wildcat banking increased incentives for risk-taking and fraud to high levels. The evidence points out that it’s the current banking system that incentivizes risk taking because the international bankers know they’re getting a bailout every time when they mess up. > The US has huge financial industry partly because the regulation is so extensive. People from all over the world invest their money in the US because they know what when liquidity crisis happens, they still get their money back. I’d like to know how this massive regulation helped consumers during the GameStop events at the end of January. Naked short selling is running rampant and the system is protecting these crooks who essentially resell the same shares repeatedly. Stock trading must inevitably take place on a blockchain: it is the only means to publicly verify accurate data. The current system with self-reported data and slap on the wrist fines is completely ridiculous.

donmcronald 5y ago
> Naked short selling is running rampant and the system is protecting these crooks who essentially resell the same shares repeatedly. > Stock trading must inevitably take place on a blockchain: it is the only means to publicly verify accurate data. The current system with self-reported data and slap on the wrist fines is completely ridiculous. I don’t know if blockchain tech is up to the task, but I agree in the context of non-negotiable, immutable transparency. It’s the only way we’ll ever find out just how corrupt Wall Street actually is. IMO the answer is very!
nradov 5y ago
There's no need to use blockchain technology for stock trading. The current centralized clearinghouse system works fine and is highly scalable. It also allows for transactions to be unwound in the case of mistakes or system failures. No one cares if a handful of retail investors lost money on foolish GameStop trades.
- logicalmonster 5y ago
  > There's no need to use blockchain technology for stock trading. You can believe what you want, I find the current system very hard to trust. With a blockchain, you don't have to trust anybody: you can just always get verifiable accurate real-time information with no possibility for manipulation or corruption. > The current centralized clearinghouse system works fine I don't understand how anybody could think that a system that can't even reliably and accurately tell you how many shares of real stock are in existence, requires self-interested self-reporting for vital stats with a slap on the wrist fine for "errors", and allows shares to be sold multiple times somehow is working fine. > is highly scalable T+2 time for trades to clear is highly scalable? > No one cares if a handful of retail investors lost money on foolish GameStop trades. The issue isn't that some people made or lost money on a trade: the issue is that there's different sets of rules for different people with the current system.
nabla9 5y ago
The current banking system has big failure modes and there is a constant threat of regulatory capture. It's still much better than alternatives. In a regulated financial environment, financial innovation creates bubbles and failures in those regions that are outside regulation and transparency. The subprime mortgage crisis was able to grow because CDO's and MBSes were outside regulators' sight. The next financial crisis is probably simmering in shadow margin and shadow banking – not well-regulated areas. When those risks actualize, then there will be more regulation.

donmcronald 5y ago

> Naked short selling is running rampant and the system is protecting these crooks who essentially resell the same shares repeatedly. > Stock trading must inevitably take place on a blockchain: it is the only means to publicly verify accurate data. The current system with self-reported data and slap on the wrist fines is completely ridiculous. I don’t know if blockchain tech is up to the task, but I agree in the context of non-negotiable, immutable transparency. It’s the only way we’ll ever find out just how corrupt Wall Street actually is. IMO the answer is very!

nradov 5y ago

There's no need to use blockchain technology for stock trading. The current centralized clearinghouse system works fine and is highly scalable. It also allows for transactions to be unwound in the case of mistakes or system failures. No one cares if a handful of retail investors lost money on foolish GameStop trades.

logicalmonster 5y ago
> There's no need to use blockchain technology for stock trading. You can believe what you want, I find the current system very hard to trust. With a blockchain, you don't have to trust anybody: you can just always get verifiable accurate real-time information with no possibility for manipulation or corruption. > The current centralized clearinghouse system works fine I don't understand how anybody could think that a system that can't even reliably and accurately tell you how many shares of real stock are in existence, requires self-interested self-reporting for vital stats with a slap on the wrist fine for "errors", and allows shares to be sold multiple times somehow is working fine. > is highly scalable T+2 time for trades to clear is highly scalable? > No one cares if a handful of retail investors lost money on foolish GameStop trades. The issue isn't that some people made or lost money on a trade: the issue is that there's different sets of rules for different people with the current system.

nabla9 5y ago

The current banking system has big failure modes and there is a constant threat of regulatory capture. It's still much better than alternatives. In a regulated financial environment, financial innovation creates bubbles and failures in those regions that are outside regulation and transparency. The subprime mortgage crisis was able to grow because CDO's and MBSes were outside regulators' sight. The next financial crisis is probably simmering in shadow margin and shadow banking – not well-regulated areas. When those risks actualize, then there will be more regulation.