Sunday, February 19, 2017

OK, let's make a 100% asset backed S&L in the sandbox

I cvannot issue Walmart rewards points, but I want to do an S&L. So I go buy 10,000 Walmart points and put them under contract to the Redneck standard S&L pit boss bot.  The pit boss will run a savings and loan with a process that keep its gains and losses to 1,000 after any given liquidity event.

If the do-rem-me runs out, accounts holders share that gain and pain, my web site shuts down. I can include cycle pricing which insures nothing abruptly happens, bankruptcy and bit error is not subject to wild swings.  But cycle pricing, or member services is like a share price in the bit error process. WHen cycle prices goes up, that i generally a period when some larger re-quantization is taking place, and the current pit is caught in a hedge; it is congested

I can get all this into a standard pit boss contract, operationally understood by Walmart customer smart cards. The smart cards, branded by Walmart, can issue bots to trade their Wall Points at my pit. Any trader with better knowledge of Walmart's back end inventory flow can hedge the S&L, which seems ungair, but it alerts consumer, by interest payments, when things are getting scarce.

Get a trading bot model that can support this contract, and bingo, you are a gazillionare.

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