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In Fifty Days, Payments Innovation Will Stop In Silicon Valley

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Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley

#211

Post by blasdel »

nazgulnarsil wrote: post #205
dpatru wrote: post #176

Earlier quoted context omitted.

> If 1,000 people die, is the company held liable by the government? Intentional or negligent killing is prosecutable. I doubt, though, that not requiring bonding for a money-transfer startup will cause the deaths of 1000 people. As to businesses generally, tort lawyers as a class make a pretty good living holding businesses accountable. The Ford/Firestone controversy comes to mind. ( http://en.wikipedia.org/wiki/Fir…

I can always tell when a site has gone past the point of no return when comments like this are simply downvoted to oblivion. If you disagree state why. but whatever, I always call these things. Internet communities refuse to be elitist about quality because they 1. believe in democracy and 2. are made up people who like to be inclusive because they were excluded as kids.

Sorry, a lot of us are just really tired of glibertarianism.

Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley

#212

Post by nazgulnarsil »

blasdel wrote: post #211
nazgulnarsil wrote: post #205

Earlier quoted context omitted.

I can always tell when a site has gone past the point of no return when comments like this are simply downvoted to oblivion. If you disagree state why. but whatever, I always call these things. Internet communities refuse to be elitist about quality because they 1. believe in democracy and 2. are made up people who like to be inclusive because they were excluded as kids.

Sorry, a lot of us are just really tired of glibertarianism.

sorry, a lot of us are just really tired of states killing people.

Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley

#214

Post by AntiVigilante »

ra wrote: post #74
hristov wrote: post #16

In the interest of correctness I should point out that the half a million fee is not a fee but a bond. The state does not take it but it is kept in a trust for people that may be injured by the particular money transmission business that gets a license. Thus, if a money transmission business steals someone's money you can sue them and when you win you can take your money from the 500,000 bond so you are sure they wil…

Thanks for clarifying. I'd like to add that this is a good practice in the financial industry, and isn't a bad thing at all. It's consumer protection. And, $500k is actually a pretty low figure for this type of 'bond'. For example, in Australia I believe you would need a banking license (or a guarantor with a banking license) which requires a deposit of at least $40M in to an escrow account which is managed by the ce…

there are no consumers and vendors.

there's only traders.

this protects the criminal banking industry by keeping people out. you think these monkey bankers can't afford $1 million?

this is market entry barriers and you paranoid idiots are letting them get away with it.

Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley

#215

Post by AntiVigilante »

duke_sam wrote: post #132
lhnn wrote: post #126

Earlier quoted context omitted.

I'd like to say this should not be legislated, and people should choose who to do business with on their own. If they offer the government a bond to cover losses, then people might go to that business instead of some startup. OTOH, perhaps I don't care when all I'm investing in my "Silicon Valley Facespacecash" bank is $20. Another reason to use alternative currencies...

The problem with the market judging is a bank is worth your money or not is that by the time everybody decides that bank X is going under it's probably too late to get your money out (e.g. a run on the bank). This is why we have the FDIC.

then use bitcoin. no money to get out it only takes a few minutes.

Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley

#216

Post by AntiVigilante »

tptacek wrote: post #183
ataggart wrote: post #181

Earlier quoted context omitted.

Which, if true, only further demonstrates the nonsense that is modern accounting practice.

Huh? Why? It's your money. If you wind down your business and settle all your outstanding transactions --- which, if you're honest, you should be able to do --- the state hands it right back to you. Not only that, but you get to collect the interest on the money. It's a bond, not a fee. Why wouldn't it be listed among your assets? It's part of the liquidation value of your business!

it's part of preventing small fry from getting in.

you could easily base the bond on volume.

the more transactions you do the more you must put in bond.

this again perpetuates the unnecessary division between individual and institution.

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