As I'm reading I can't help but think about security. We have a lot of fraud because of the system we use now, and he's proposing that we open it up and make things like transfers super easy. I don't think the security is up to snuff yet.
This muddles so many different things. Banking != Finance != Investing != Monetary Policy != Currency... and so on.
It's the dangerous combination of businesses that are the challenge. There are plenty of credit unions that aren't in trouble because they didn't try to profit in dangerous ways.
There's so much wrong here it makes me tired to even think about speaking to it.
banking is an industry. it's pretencious to ask for help as if they were a charity fund. this way our governments have gave money to them from our pockets. a nice hypothesis of the recession (it's in spanish): http://tinyurl.com/krqu7g
Harry Markowitz developed the modern portfolio theory, the core of mathematical finance. However, when he invested his own money, he invested 50% in bonds, and the other 50% in blue chip stocks. Moral of the story: people tend to be very conservative when it comes to their money.
I also do think that the banking system is living in the dark ages. It's more than obsolete, it's pre-historic. I wouldn't be the least bit surprised to hear that some banks still used perforated cards ;-) Well, they still use COBOL...
It's easy to think of ways of innovating the current banking system. But what makes one think that anyone wants to innovate it? Banking is a pillar of society. One can't move the pillars because the edifice standing on them is too heavy.
Well, I still program in C, and I still learn 19th century math & physics. Not all things are destined to get stale. Your comments are usually insightful. This one conveyed zero bits of information. Seriously.
Has anyone heard of paypal? Ever applied for their Identity Protection? Banking has been solved, security has been solved. Nobody cares; that's the real problem.
