3 ms·
The money moves around and around and around (notionally) a dizzyingly large number of times because the more opaque the process and end product, the less immed
by webtards 11y ago
The money moves around and around and around (notionally) a dizzyingly large number of times because the more opaque the process and end product, the less immediate introspection it receives, the less well the average Joe can understand it, and the firm can continue 'alchemy'.
Kudos to the regulators for the arduous task of unravelling the large ball of string and following it to the conclusion!
- wpietri 11y agoIt reminds me a lot of large code bases. At some point people face a choice between a) forcing sufficient simplicity and clarity that one has a chance of understanding what's going on, and b) saying "fuck it" and letting complexity metastasize to the point nobody really understands what's going on. The difference, of course, is that with software the opaqueness is pure cost. Whereas in the financial markets the opaqueness is often a profitable resource from somebody.