Reforming the Business Model for Banks

Max Funk, of AccelVal Technologies Institute, explains how the financial crisis is the sole result of a defective business model for banks.
After stating the problem he declares his solution that will put an end to the possibility of another financial crisis to occur: the prioritization of protection & access of money before people investment it (i.e. so no "high level banker" gets their greasy hands on someone's money before a fully accountable and informed decision can be made).
He ends by announcing equilcurrency.com as being the first to pioneer a whole new financial system that only stores money for the sake of its protection and access for trade. While enormously reducing transaction costs for everyone including the government, EquilCurrency's application of AccelVal's new patent, the "system clock", provides all internet users with real-time economic and business data.

Category:

Science & Technology

Tags:

• banking
• banks
• failure
• economics
• technology
• policy
• justice
• reform
• venture
• capital
• startup
• social
• responsibility
• government
• transparency

[Straightsix76]

Money is energy...or to be more specific money represents the amount of energy embodied in a specific product or service. In order for the banks to keep lending, the economy has to keep growing..and in order for the economy to keep growing...global energy (oil) production/extraction has to keep growing, however global oil extraction/production has reach max output (peak oil). This will choke economic growth, which translates to less demand for loans and credit. Just my tuppence worth

[mxfactorial]

"In order for the banks to keep lending, the economy has to keep growing"

... my argument is that the economy is not growing because capital markets are only as competitive as the banks allow them to be (they're in the way).

by relegating "banks" to being investors, only, and opening up everyone to the same information they have about trade, we will blast the doors off the global capital market with real, reliable information... and growth will be less dependent on oil.

thanks for your comment.

[spankrobot]

I really don't want a bank to "hold" my money for me b/c I don't like the rotten things that banks do. Let the Treasury hold it for me until I want to take it out or move it somewhere else.

[Zimba9810]

dont bank need to lend money to others to make profit? I dont think they lost most of their money from investments. They lost it by people not paying back their loans.

[davidshaz20000]

Donot go against Banking cartels & Mafias as If they see their fraud of generating wealth from thin Air exposed then they will bring true recession and WWIII imposed on whole world......They are all connected in a very large Matrix so taking out basic building block of Matrix will lead to all out WAR on All

[mxfactorial]

equilcurrency will be publishing a proposal aimed at the state of california for the purpose of making its fiscal activity completely transparent and easy to observe using a new kind of bank that does not engage in investment.

stay tuned.

[PersonOfBook]

I agree with you. What I was saying was that banking in its current form is bad, be it Conventional banking or Islamic banking. I'm for a monetary system that is completely interest free, but not interest free in the way Islamic banks pretend to be, because they are just fraud!

[mxfactorial]

the whole point of investment is to earn a return regardless of the kind of investment. *before* investment, though, folks should be afforded absolute protection of their money & access to a perfectly competitive capital market & have as much access to information as anyone else within that market (see modigliani miller). this doesn't happen if banks are already investing people's money when they should just be protecting it.

give it any name you'd like, at least it avoids the moral hazard.

[PersonOfBook]

Please don't call that Islamic Banking thing Islamic, its not, its just an eyewash!

[deadrebel2]

@mxfactorial

Agreed, but we can't even convince people to stop using fluoride in their toothpaste or not to get vaccinated. The Muslim banking system forbids the use of interest, they get around it by charging hugh setup fees etc.

All said, like so many other things I see and read great concept very difficult to implement, but keep the info flowing.