"Upstream" with Erik Torenberg
E80: Financial Plumbing with Patrick McKenzie and Erik Torenberg
Sep 26, 2024
In this discussion, Patrick McKenzie, a financial expert, delves into the intricate world of banking and money laundering alongside host Erik Torenberg. They explore the three stages of money laundering—placement, layering, and integration—and how banks are often unintentionally ensnared in criminal activities while adhering to stringent regulations. The conversation also critiques the unintended consequences of these regulations on economic growth and financial inclusion, revealing a complex interplay between compliance and entrepreneurship.
57:13
Episode guests
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Patrick McKenzie explains the three stages of money laundering—placement, layering, and integration—and how financial systems assist in law enforcement.
- The unintended consequences of strict regulations like KYC and AML often impede economic growth and financial inclusion due to excessive compliance focus.
Deep dives
Exploring the Concept of 'Seeing Like a State' and Big Tech
The concept of 'Seeing Like a State' illustrates the systematic failures of centralized control within bureaucracies. In discussing how this applies to big tech, it is suggested that while these companies achieve operational success beyond historical precedents, they also face unique challenges. For example, even highly successful companies like Apple and Google exhibit failures in areas outside their core competencies, such as forestry management. This contrast highlights that while big tech demonstrates remarkable abilities in specific sectors, the complexities of diverse operations reveal potential limits and failures.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
