Saturday 9th Feb – Transition Transactions: p2p local banking
Transition Town Stoke Newington warmly invite you to come and learn about Transition Transactions. This peer2peer local banking system could transform the local bang you get for your buck & dramatically boost local economies. Oliver Ashton and Fred Garnett will present their exciting idea and be keen to answer any questions you have. Also Move Your Money will talk about how moving your money out of the big banks can make it work more effectively for Transition ends. Looking forward to seeing you there. Transition tea cake and chat provided. When: Saturday 9th FebruaryTime: 330 for tea and cakes action from 4Where: St Pauls West Hackney: map here (fully accessible) http://ttstokenewington.org.ukhttp://transitiontransaction.wordpress.com”
GavinRedknap
I perfectly understand the point behind Move Your Money and I understand the environmental concerns behind the Transition Town movement, but this Transition Transactions idea looks fundamentally flawed (the clue is in using Argentina as an economic model to aspire to). They also mistake Credit Default Swaps (essentially insurance policies traded on the perceived probability that a borrower will default on their outstanding debt) with Collateralised Debt Obligations (where a bank manages a portfolio of debts and sells them off in credit tranches). They also wholly fail to explain how a P2P lender could have any certainty on being repaid – does the borrower make all their financial details publicly available, or do they put up significant collateral, or does some intermediary ‘vouch’ for them?