Patrick McKenzie (@patio11) reads his latest Bits about Money essay explaining why he “loves Regulation E more than any rational person does.” He explains how Reg E created a privately-administered legal system processing over 100 million complaints annually—dwarfing the formal U.S. court system—and why banks are now trying to avoid these obligations for Zelle's nine figure fraud problem.
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Full transcript available here: www.complexsystemspodcast.com/the-magic-spell-reg-e/

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Links:

• Bits about Money, One Regulation E, Two Very Different Regimes
• Full version of "Doesn't Matter, That's Reg E": https://suno.com/song/173bbd67-92f7-4868-930f-efeca4b373c0

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Timestamps:

(00:00) Introduction

(02:46) These newfangled computers might steal our money

(12:45) The contractual liability waterfall in card payments
(20:35) Sponsors: MongoDB and Framer

(22:23) The contractual liability waterfall in card payments (continued)

(23:47) Enter Zelle

(25:46) Zelle is an enormous fraud target

(32:23) Banks may attempt to extend the Zelle precedent

(35:02) Reg E encompasses almost every technology which exists and many which don’t yet

Our annual year-in-review episode covers some recurring themes from 2025 and some behind-the-curtains discussion of running a podcast. Patrick McKenzie (patio11) sits down with producer Sammy Cottrell to discuss the most popular episodes of the year, the impact of AI coding tools, the challenges of video podcasting, Sammy's role as a "fixer" finding guests, and much more.
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Full transcript available here: www.complexsystemspodcast.com/2025-in-review-with-sammy-cottrell/

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Sponsor:

Framer is a design and publishing platform that collapses the toolchain between wireframes and production-ready websites. Design, iterate, and publish in one workspace. Start free at framer.com/design with code COMPLEXSYSTEMS for a free month of Framer Pro.

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Timestamps:

(00:00) Introduction

(01:38) Launching video podcasts this year

(02:52) AI ethics and risk discussions

(04:29) Supporting LessWrong and LightHaven

(07:24) Adventures in AI-assisted hobbies

(12:38) Most popular episodes of the year

(19:45) Sponsor: Framer

(20:52) Popular episodes (continued)

(29:06) Setting up a podcast studio at Lighthaven

(32:31) Internal company podcasts

(38:03) Year in review and investigative journalism

(43:02) Creating Isekai

(49:13) Wrap

For this week's holiday-inspired Complex Systems, Patrick reads his essay from Bits about Money on the gift card paradox: a legitimate payments rail, yet also a primary vector for fraud that leaves victims without recourse.
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Full transcript available here: www.complexsystemspodcast.com/gift-cards-and-the-fraud-supply-chain/

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Sponsors: Givewell & Framer

Support proven charities that deliver measurable results and learn how to maximize your charitable impact with GiveWell. Go to givewell.org, pick “Podcast” and enter Complex Systems at checkout.

Framer is a design and publishing platform that collapses the toolchain between wireframes and production-ready websites. Design, iterate, and publish in one workspace. Start free at framer.com/design with code COMPLEXSYSTEMS for a free month of Framer Pro.
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Links:

• Bits about Money, Gift cards accountability sink https://www.bitsaboutmoney.com/archive/gift-card-accountability-sink/
• Global China Puise, Moving Bricks https://globalchinapulse.net/moving-bricks-money-laundering-practices-in-the-online-scam-industry/

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Timestamps:
(00:00) Intro
(04:02) Most businesses do not run their own gift card programs
(06:40) Sponsors: Givewell and Framer
(09:00) Most businesses do not run their own gift card programs (part 2)
(10:27) Gift cards are not regulated like other electronic payments instruments
(12:07) Why do we choose this difference in regulation?