6 ms·

I guess credit and undos smooth over most of the problems.

lisper 4y ago
Yes, that certainly helps a lot, but I'm pretty sure that would crumble under certain not-terribly-difficult-to-execute attacks. The happy fact of the matter is that the vast majority of actors in the economy seem to be pretty well-behaved. The scary thing is that the system seems to depend on this.
- joe-collins 4y ago
  I don't think that's specific to the economy. I think that's a succinct description of civilization.
  - avg_dev 4y ago
    I think of this every once in a while. We trust, a lot. Things would be different if we didn’t. I believe laws generally protect us after the fact, not before.
- Clent 4y ago
  Sounds like bitcoin's 51% attack issues. Only I'm guessing it doesn't take half as much to create crumble the banking system.
- kebman 4y ago
  It's because of mutually assured destruction. It's the same reason why there's a tacit agreement between enemy heads of state to not just assassinate each other. Doing so would just start a new world order that wouldn't be in anyone's interest. Sort of like nuking an enemy isn't a good idea either because of the retaliatory consequences it would necessarily cause.
- vinay_ys 4y ago
  > The happy fact of the matter is that the vast majority of actors in the economy seem to be pretty well-behaved. That's mainly because, in most countries, to become a participant in a regulated financial system, you have to meet the 'fit and proper' criteria of qualification [https://www.bis.org/publ/bcbs47c4.pdf https://www.bis.org/publ/bcbs47c4.pdf]. There are continuous audits and enforcement/disciplinary actions taken to ensure regulatory compliance. Also, digitisation has enabled tech based regulatory/supervisory tooling to reduce the burden of regulatory/supervisory activities. And, as newer/faster tech based mechanisms/rails have gained adoption older more cumbersome rails are getting retired. This is leading to effective regulatory simplifications.

Yes, that certainly helps a lot, but I'm pretty sure that would crumble under certain not-terribly-difficult-to-execute attacks. The happy fact of the matter is that the vast majority of actors in the economy seem to be pretty well-behaved. The scary thing is that the system seems to depend on this.

joe-collins 4y ago
I don't think that's specific to the economy. I think that's a succinct description of civilization.
- avg_dev 4y ago
  I think of this every once in a while. We trust, a lot. Things would be different if we didn’t. I believe laws generally protect us after the fact, not before.
Clent 4y ago
Sounds like bitcoin's 51% attack issues. Only I'm guessing it doesn't take half as much to create crumble the banking system.
kebman 4y ago
It's because of mutually assured destruction. It's the same reason why there's a tacit agreement between enemy heads of state to not just assassinate each other. Doing so would just start a new world order that wouldn't be in anyone's interest. Sort of like nuking an enemy isn't a good idea either because of the retaliatory consequences it would necessarily cause.
vinay_ys 4y ago
> The happy fact of the matter is that the vast majority of actors in the economy seem to be pretty well-behaved. That's mainly because, in most countries, to become a participant in a regulated financial system, you have to meet the 'fit and proper' criteria of qualification [https://www.bis.org/publ/bcbs47c4.pdf https://www.bis.org/publ/bcbs47c4.pdf]. There are continuous audits and enforcement/disciplinary actions taken to ensure regulatory compliance. Also, digitisation has enabled tech based regulatory/supervisory tooling to reduce the burden of regulatory/supervisory activities. And, as newer/faster tech based mechanisms/rails have gained adoption older more cumbersome rails are getting retired. This is leading to effective regulatory simplifications.