Is Our Money Safe?

The greatest risk of AI is its ability to hack our finances. One day, we may wake up to find our money has disappeared. 

AI is a useful tool, but it is often wrong, and not in shape to be fully trusted.

Bank Bailouts

Banking Crisis 2023

Is the current financial crisis an act of intentional sabotage?

 

GFC 2.0

Three banks have gone bust in the last few days; the collapses started with Silvergate, followed by Silicon Valley Bank which became the USA's second largest bank failure in history, and now on Sunday, New York based Signature bank has had regulators take control. 

Clearly this is serious and yet more banks will fail. I predicted this would happen. Back with GFC 1.0 there was little financial rigour put in place, goalposts were moved and institutions were rescued. The term 'too big to fail' became a thing. I complained loudly, saying where were my bargains? Governments propped up failure. That never leads anywhere and only causes more harm. And here we are.

Word is that SVB spent more time on trendy causes than actually paying attention to risk management. I can believe it. The other rumour is that Prince Harry and his wife have a lot of money deposited with SVB. We'll see, but don't be surprised if you see the pair suddenly head back to England and for King Charles to bail his son out. If this does happen, watch the reaction from the British subjects, the Coronation could end up being booed. 

As the saying goes, we live in interesting times.

https://www.coindesk.com/policy/2023/03/12/crypto-friendly-signature-bank-shut-down-by-state-regulators-fed/

What a Cashless Society Means

End of Cheques a Disaster for Charities

In New Zealand banks are phasing out cheques. There are many reasons for why this is a bad idea. For starters, overseas payers often send a cheque, they still have advanced and meaningful economies where cheques are still used widely. Amazon is an example of a company that pays NZ by cheque. That's right, no direct paying into bank accounts by Amazon for tiny countries, just for big ones like the US, Canada and the UK.

But the biggest impact from the removal of cheques will be on charities. Many of them deal with older people who like to donate and they are less likely to trust online payment methods. Think also about older people's sight, hearing (for telephone banking) and other disabilities. Or people who live remotely. Charities are going to be faced with a very steep curve trying to get donations from these people. For many charities it will spell the end.

Read about it here: https://www.rnz.co.nz/news/business/410820/charities-could-miss-out-on-millions-if-banks-scrap-cheques

For thousands of New Zealanders, sending a cheque to a charity they support may be the only time they connect with the organisation.