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If this seemed like a bad trade for lexrifyly, over time it was not: firstly, cash was cheap, and lexrifyly didn’t care: what was money, when it came to it? Secondly, Barkley’s models demonstrated that the looney bid could invert in any number of circumstances: a market crash, hawkish monetary policy, the arbitrary dissipation of mass hysteria or the sudden onset of incipient tech winter. | If this seemed like a bad trade for lexrifyly, over time it was not: firstly, cash was cheap, and lexrifyly didn’t care: what was money, when it came to it? Secondly, Barkley’s models demonstrated that the looney bid could invert in any number of circumstances: a market crash, hawkish monetary policy, the arbitrary dissipation of mass hysteria or the sudden onset of incipient tech winter. | ||
For these contingencies the ERS was a natural hedge. While wide-scale redundancies and hiring freezes gripped the fintech sector, the boring old banking industry would box on as it always had done. At that point, a fintech that was short ''[[π]] | For these contingencies the ERS was a natural hedge. While wide-scale redundancies and hiring freezes gripped the fintech sector, the boring old banking industry would box on as it always had done. At that point, a fintech that was short ''[[π]]'' under an [[Employment rate swap|ERS]] would have a sensible amount of cash coming in from its bank counterparty to keep the lights on. | ||
====The “PIEBOR” submission process==== | ====The “PIEBOR” submission process==== | ||
{{Drop|I|t was easy}} enough to quantify a bank’s presumptive wage bill since, once you controlled it for hysteria, it was more or less a fixed rate. But what about the ever-changing hypothetical wage bill of a startup? How to gauge that in real-time? And what was to stop a startup gaming the rate easily, by just pretending its actual preparedness to pay stupid money was lower than it really was? | {{Drop|I|t was easy}} enough to quantify a bank’s presumptive wage bill since, once you controlled it for hysteria, it was more or less a fixed rate. But what about the ever-changing hypothetical wage bill of a startup? How to gauge that in real-time? And what was to stop a startup gaming the rate easily, by just pretending its actual preparedness to pay stupid money was lower than it really was? |