From: lstanton@lehman.com (Linn Stanton)
Date: Thu, 20 Jan 94 12:56:48 PST
To: matthew@gandalf.rutgers.edu
Subject: Re: Internet Banking
In-Reply-To: <CMM-RU.1.3.759090340.matthew@gandalf.rutgers.edu>
Message-ID: <9401202055.AA24429@sten.lehman.com>
MIME-Version: 1.0
Content-Type: text/plain



-----BEGIN PGP SIGNED MESSAGE-----

>>>>> "Matthew" == Matthew Bernardini <matthew@gandalf.rutgers.edu> writes:

    Matthew> 1) Who will insure your money ?  Can you trust anyone but
    Matthew> the US gov't to back your funds ?  Even in the S&L

Not all banks in the world are a part of FDIC. Who said that an internet
bank would have to be US based? Are there NO banks that you feel are
trustworthy outside of the US?

    Matthew> 2) A doctoral thesis could be written about this one, but
    Matthew> what about the Federal Reserve ?  You would wreak havoc

Many doctoral dissertations have been written on the Fed. Most of them
come to the conclusion that the Fed is an utter failure...

    Matthew> 3) Interest Rates and Inflation ...

    Matthew> 4) Interest Rates and Inflation ....

    Matthew> 5) You guessed it, Interest Rates and Inflation.

    Matthew> I think there are more economic issues than encryption
    Matthew> issues to be considered in this case.

Two points:

1) A single bank would not have enough capital to significantly affect
world interest and inflation rates, even if all of its depositors acted
in concert to do so.

2) If you ignore that and assume that a new banking system grew outside
of government control with enough capital to affect the world markets,
why is that A Bad Thing?  Do you really think that a large non-us-government
regulated bank would bring the world financial system to its knees?


Linn H. Stanton <stanton@acm.org>

The above opinions are exclusively my own. If anyone else wants them,
they can buy them from me. Easy terms can be arranged.
- -----BEGIN PGP PUBLIC KEY BLOCK-----
Version: 2.2
 
mQBNAitK8+EAAAECALzK83DH79m7DLKBmZA2h9U33fBE80EwT4xRY05K7WRfxpO3
BmhPVBmes9h97odVZ0RxAFvinOl4wZGOb8pDclMABRG0IUxpbm4gSC4gU3RhbnRv
biA8c3RhbnRvbkBhY20ub3JnPrQnTGlubiBILiBTdGFudG9uIDxsc3RhbnRvbkBz
aGVhcnNvbi5jb20+
=oCru
- -----END PGP PUBLIC KEY BLOCK-----

-----BEGIN PGP SIGNATURE-----
Version: 2.3a

iQBVAgUBLT7vtMGRjm/KQ3JTAQGDfwH+KlyMF3bYrZMtCuqGrzP3pW8uEuh4XYlj
Zcz1yHjrJtqQtI9bm+Su+i2FFzup9veEg1K/IdhgFIusbgNkpKGrFA==
=GXUm
-----END PGP SIGNATURE-----