Quote from: Barabbas0 on January 06, 2015, 04:20:12 PM

Quote from: mjr on January 05, 2015, 11:15:22 PM

Quote from: Barabbas0 on January 05, 2015, 07:45:34 PM

mjr is a joke. Only response is to say lenders are greedy and want better rates. At best, it's laziness. The simple fact is, I'm pulling my money back from lending. Not because of low interest rates, but because of low interest from BFX. They would rather run from a problem than admit it. There will undoubtedly be more volatility and shortages of liquidity.

This community has put forth some great ideas. I'm looking forward to Bitfinex reacting (not really, I expect nothing more than further ignorant insulting from mjr). In the meantime, the equity markets are far more interesting. Additionally, my stock broker actually answers my emails, so I'm content giving my money to them instead. They also know something about fixed interest lending.

That is a perfect response. If you can find a better use of your funds, that is how you "vote" on the rate on the swap market. If enough people feel the way you do, there will be a lack of supply and the rates will rise. If they get attractive enough, perhaps you will offer swaps again. Either way, good for you for making decisions about how you want to use your money, that is the free market in action!

You still think that the lend market is driven by supply and demand. FFS, open your eyes and use your head. I've explained before why FRR is "breaking" the lending market. You dismissed me as a "greedy lender". My whole argument has always been, and still is, when you ignore a very obvious issue in your market, you lose liquidity. Markets are never 100% efficient, you're assuming they are. By your own admission, there's a lag with withdrawing/depositing USD. For that reason alone, it's obvious why liquidity is an issue. As long as the majority of the market remains "lazy" and offering at FRR, rates will inevitably decrease. It's decreasing to the point where lenders, like me, are pulling money off. Demand has nothing to do with lend rates. When volatility is X% per day, a 0.0X% rate is nothing. What traders are increasing their volumes due to decreasing margin rates? Now what happens when BTC has a volatility spike? Margin traders click "buy" and, due to the volume, the lendbook gets obliterated. All the liquidity providers, like me? We left, because you claimed supply and demand would fix the problem.

You're a pro at demonstrating your incompetence. Please learn anything, even just the basics, of how markets, especially fixed interest ones, work.

"As long as the majority of the market remains "lazy" and offering at FRR, rates will inevitably decrease. It's decreasing to the point where lenders, like me, are pulling money off." OK, and "why is that a problem?", is my question...

We do not care if the rates drop, or if people pull their funds, there are more funds chasing the limited trading than needed right now...which is why rates are low. Right now there is NO issue with liquidity.

"As long as the majority of the market remains "lazy" and offering at FRR, rates will inevitably decrease."

As long as tons of people keep offering their funds, there won't be funds available...that sum up the argument? Those people don't seem to care if the rate decreases. If they wanted better rates, they would start using HowardF's bot. There are currently around 2.5 million at the FRR, last I checked.

The main isssue, is that because YOU think they are making a stupid choice, you think that you should change their choice. Basically, like a competitor that offers a loss leader, in order to drum up volume, you as the person who wants to charge a premium have an interest in them ceasing that activity. I am not dismissing you as a greedy "lender". I am saying that you are free to offer or not offer your funds at whatever rate you feel is appropriate, everyone else is also able to do that. It seems like a lot of people chose to just accept the average of all fixed rate swaps over the last hour, that is the number they chose by using the FRR. You don't like that number, so you don't have to choose it. They are free to choose that number if they like though. I'm sorry you don't agree with THEIR choices.