[cryptography] Fwd: (off-topic) Bitcoin is a repeated lesson in cryptography applications - was "endgame"

James A. Donald jamesd at echeque.com
Sun Feb 26 00:17:08 EST 2012


On 2012-02-25 5:50 PM, Randall Webmail wrote:
 > I really shouldn't continue this OT thread any longer, but
 > I'll note that all financial panics have a common theme:  Some people
 > get rich selling snake oil to latecomers jumping on the bandwagon.

On the contrary:  Almost all financial panics result from
maturity transformation.  Thus, as the recent financial panic
approached, the Singaporean authorities demanded that all
Singaporean financial institutions report their maturity
mismatch.

Although the ultimate cause of the recent crisis was lending million 
dollar mortgages to illegal immigrants with no job, no money, and no 
credit history, its 2007 manifestation was run on the repo market, which 
is a classic case of maturity mismatch.



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