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Defaulting Sovereign Debt isn't new, it has been done several times in the past. What makes this new, is that Greece's default affects other Sovereign Debt.
This is why the first to go wins, the last loses. I'd expect Germany is aware of this and would take steps to exit before they get holding the bag for other's incompetence.
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As if there is no way to crowd loan ..
Please point me at this magical place that will crowd-source a 30 year mortgage for £250,000 (a fairly typical house price in the UK) at lower rates than I can get at a bank. Please then point me at the people who have held other crowd-loans for 30 years and had no defaulters. Edit: there is a thread going on right now about crowd-sourcing $125,000 to buy an island. Care to predict whether they'll get it or not? UK mortgage lending is in the order of £130 billion; and you throw about facetious little "as if there were no crowd-loans"? Ha. Yea, you see that is the problem. The banks interest rates shouldn't be that low. They are, but they shouldn't be. They won't be for long. So get it whilst you can. Crowd funding has really entered the Individual Market to any extent. Lloyd's comes close, Kickstarter, Venture Capitalists, etc.. are others. We do have a Lending Forum here, with the appropriate collateral something might be arranged but you would need to lock up that collateral for 30 years also. So it's not perfect for long term loans. Personally, I think 30 Year loans are absurd anyways. They don't benefit the individual. You pay the bank way more than the value of the asset, especially now. 10 Year should be max and a nice compromise. If you have money, 5-7 years would be perfect for the individual. |
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houses will soon be cheep in Greece?
The taxes on that property won't be. |
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It is not 'just' deposits. It is 'assets'.
When the bank loans 100K for a house, the house becomes an asset so the growth of the unpaid portion of the house increases that asset. But made it much worse besides the housing crash, is that the Accounts receivable became an 'asset', so instead of the 100K, they counted 300K they 'Will' be paid from the 100K loan as an asset.
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I guess that's a problem then, I always thought FRB means a bank lends more than it's deposits, meaning they create money out of thin air, something which we know is damn near impossible with bitcoin. Lending out a % of deposits != FRB to me.
Your understanding is wrong. A bank cannot lend out more than its deposits. In fact, the reserve ratio is what specifies how much they can lend out. They are allowed to lend (in the UK) 97% of deposits. Let me explain where the money "creation" comes from though: imagine there is only one bank in the universe. Imagine also that we have no such thing as cash, that it is all numbers on a screen. The bank starts with $100,000 of its own. Alice wants to borrow $100,000 to buy Bob's house. The bank agrees, and creates a $100,000 asset in the form of the loan to Alice; and a $100,000 liability in the form of a liability to Bob's current account. That is to say that Bob has $100,000 on deposit, the bank has $100,000 in equity and has loaned $100,000 to Alice. That is a reserve ratio of 100,000/200,000 = 50%. Go again. Charlie buys Daves house. Charlie owes the bank $100,000; Dave is owed $100,000 by the bank (and hence has $100,000) on deposit. Total deposits and equity = $300,000 Total loaned = $200,000 Reserve ratio = 66% At no time does the bank lend more than it has on deposit. Money is "created" by the act of borrowing. If no one was willing to borrow then no money "creation" would take place. And this is where the 'Leveraging' comes in to grow wealth. Unfortunately these 'unpaid' for assets get added to the formula. I'm saying leveraging isn't bad but one must be very careful and expect defaults and prepare for them so the whole house of cards don't come down. 30-40 is a safe number, 400:1 is INSANE. |
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Is that why we have FRB in Bitcoin? Oh wait we don't have it. We don't? Hmm.. Ok, I missed something. Oh we do? Then I missed something and should sell my BTC asap since apparently someone figured out how to counterfeit bitcoins. When, where and who did it? Fractional-reserve banking is a form of banking where banks maintain reserves (of cash and coin or deposits at the central bank) that are only a fraction of the customer's deposits. This has nothing to do with 'counterfeiting". |
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Is that why we have FRB in Bitcoin? Oh wait we don't have it. We don't? Hmm.. Ok, I missed something. |
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IMO, FRB is a normal process. Most people don't want their money just sitting there otherwise they would get safety deposit boxes and not bank accounts.
What we are really arguing about is the amount of Leverage that is applied to FRB. I think 30-40 is a good amount, apparently banks thought 400 was good. I guess they know better NOW.
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Being a firm believer in caveat emptor, I'm not going to claim that fractional reserve banking is an outright fraud. Somewhere in the fine print the banks do state that your money may not be available immediately on request. However, it's not hard to see why people call it that, or why a strict separation was required between interest-bearing time accounts, like CDs, and fee-based demand accounts.
Runs on banks really isn't a problem. Banks can just resume doing what they used to do -- have a clause in the savings agreement that allows them to declare an emergency and defer withdrawals in exchange for paying their customers an increased interest rate. So long as the bank is fundamentally solid and the problem is just liquidity, you can even find other banks who will buy your deposits at the bank suffering from a run. They know they'll get paid the amount, plus more than normal interest, when the bank recovers its liquidity. The problem is if a bank makes bad investments such as loans that will never be repaid. Insufficient equity is much more devastating than insufficient liquidity. In the mid 80's, some Libertarians who believed that fractional-reserve banking was a fraud opened an "honest" bank. They stored your money in their vault and had 100% reserves. Of course, they couldn't pay any interest and even had to charge a small storage fee. Not surprisingly, their service wasn't very popular at all. (Though, in fairness, part of this is because the government insures bank deposits. Heck, in today's economic climate, they might actually do some business for people with amounts over the FDIC limit.) Ironically, the equity in this market IS the liquidity. |
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How about just ... Not keeping bitcoins on the server?
How bad would it be if all non-trivial withdraws needed up to 24h to be done manually? Where the platform issued pgp signed and encrypted withdrawal requests that were reviewed and performed manually, offsite?
Well, with any site that needs to send bitcoins back out you need whats known as a hot wallet, ie, a wallet that ONLY has enough to do day to day business... you setup your software to send excess coins to a cold wallet (offline or otherwise hidden on another machine), and message you if you need to manually transfer from cold to hot. No one has $90k worth of coins in their hot wallet. Yep. That's what we do with Liberty Reserve, etc.. at our site. Sometimes we might get 30-40K overnight and I don't want to have it laying in there till I wake up. Leave 10K for immediate needs. when the balance goes over 15K the software sends to LR account solely there for cold storage, with no API access, etc. By the way, your miner kicks ass  Explaining the details of your operations might not be a wise thing to do in public. |
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D&T seems to know a little something here.
I would have a team write a withdrawal.log file that is read from another server somewhere that reads the withdrawal requests, verifies against the preknown accounts (hashed of course), and executes the outgoing to the network from a completely different location. This Floating 'float' account can be moved at intervals to provide another level of security.
OFC, this doesn't prevent messing with the positions of people in the code but it would help to not lose $300K.
D&T has already pointed out in another thread in a strongly worded opinion things that should have been learned. I would have thought $300K would have taught somethings if at least another degree.
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Why don't you guys start 'trading' your Purchase Orders. Like pay an extra 10 BTC for the next order delivery... |
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Willing to accept any suggestions. The basic premise was to present an indisputable method of verifying who wins. Using Lotto numbers in some fashion can do this.
I would've have taken the approach Freemoney did under the current structure. Buy a slot with high number of combinations and then more as other slots were purchased offsetting odds with the largest open gap between numbers. One would have to keep an eye on the payouts also.
I initially liked the strategy to the game but without people playing it becomes mundane and simplistic.
I have a couple of ideas as to tweak it but am willing to accept others.
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Nothing stops them from putting a lock on the thread. They didn't and that says that they expected responses. Some good, some bad, some absurd, etc... It is a forum on the internet.
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Recieved...
Since you are the only player....
Slots = 1 BTC Pot = 10 BTC
Payouts= 0.9 BTC + 10 BTC = 10.9 BTC to Freemoney | 0.1 BTC to BTC_Challenge Fund
Please provide a receive address...
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~ 1 Hour Left. 1 Confirmed entry.
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A nasty melt-down in Europe can send bitcoin price sky high - do you think it is happening now? Or do you think the politicians will settle down again for a few months, just like they have been doing for a year already, postponing the crisis, and letting the evident down trend do it's turn before we are back to the rally?
For a very small few, BTC might be a way to protect the value of a currency until it is exchanged into another form. And it would be a smart bet. If I were Greek, I would transfer a chunk of personal wealth into BTC and then back out again when the new currency comes on line. |
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~4 hours left. 1 Confirmed Entry.
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I paid .5BTC
I want 185.
Confirmed and Added. You currently own 185 to 350. |
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