Halls of Shrewd'm / US Policy❤
No. of Recommendations: 18
With the president of the United States issuing his own coins and widely deregulating what until this point has been considered a questionable industry, it's time to consider how systemic a crypto crash would be. On the surface one would think the government would not be on the hook so much because it is not a currency issued by the government, however, it's pretty clear that this administration is in pretty deep with the high tech broligarchy and that will make it difficult for him to abandon the crew that helped get him there. We are also starting to see a marriage of the crypto grift with so called "legitimate" traditional banking. You can now borrow against your grifto coins a lot of ETF's and retirement funds are going deeper into it. So how systemic is Grifto? World wide financial crisis systemic or Silicon Valley bank manageable systemic?
No. of Recommendations: 7
if it doesnt crash soon, I fear world wide....I only know a very few folks with crypto, and I dont trust any of them even before I knew that...
No. of Recommendations: 6
I'm having trouble relating this to Berkshire Hathaway.
The METAR board is over that way ->
-- sutton
No. of Recommendations: 5
A concern: crypto crashes, our government spends (our) real money bailing them out.
It’s a shame that so many ordinary punters will be hurt by it. Don’t know what to do about that. I tell people to own productive assets. They get seduced by get rich quick schemes and shiny things, the latest fad, and “helpers” selling complicated products they don’t understand.
No. of Recommendations: 11
crypto crashes, our government spends (our) real money bailing them out.
It is of course going to be difficult, in the moment, to disentangle the personal interests of senior administration figures from the fate of crypto. But assuming that the decision on a bailout were to depend on legitimate public interests, are there any? Do non-crypto owners have unwitting skin in the game?
I completely agree that this has nothing to do with BRK. But then neither do I, really. I've never owned it. But this is a board where you can count on smart, civil, and well-informed comment, and don't need to wait a week for it. That draws a crowd.
Baltassar
No. of Recommendations: 25
"I'm having trouble relating this to Berkshire Hathaway."
Because if it's systemic it very much relates to Berkshire. Honestly, and I don't mean this to be flippant, that's not difficult too grasp. With our president offering meme coins it begs the question what will happen if there's a crash. During the financial crisis two presidents elected to bail out bankers but they were not trading credit default swaps or structuring CDO's. If crypto crashes and it becomes systemic having a president literally involved in the crises raises things to a level never seen before. And that's not being political! We've never had a president that could potentially be involved in a decision on whether to bail out a an industry they are heavily involved with.
No. of Recommendations: 5
A concern: crypto crashes, our government spends (our) real money bailing them out.
nailed it....thank you....
No. of Recommendations: 5
Because if it's systemic it very much relates to Berkshire. Honestly, and I don't mean this to be flippant, that's not difficult too grasp. With our president offering meme coins it begs the question what will happen if there's a crash.
Declines in assets aren't systemically important. Declines in assets paired with leverage is systemically important. That's why there was a financial crisis when highly-levered firms experienced declines in the assets they held, but there wasn't a financial crisis when the Nasdaq dropped by more than 50%.
Unless there's some association between crypto and leveraged, systemically-important entities, I don't think there's any reason to care if most crypto goes belly up.
No. of Recommendations: 2
As the years passed I developed a model on when capital allocation awareness comes home to roost, when a realistic evaluation of what's happening finally awakens all. It is when the prices of those associated with wild slinging of capital weaken and begin to fall. This downturn in prices may be brief or it may be the start of what's inevitable, the more extreme on the up is equaled by the down. But until prices fall there will be few who gain traction in the news with a realistic view on capital flows. Until then we can expect Dan Nyles to simply add more brilliant coloring to his wardrobe.
No. of Recommendations: 1
Unless there's some association between crypto and leveraged, systemically-important entities
I think this is an interesting point.
The implication of other posts is that the president's personal stake in the industry may stand in for such association. That is a matter of inference, but it does not seem implausible to me.
Setting that issue aside, is there any way the broader investing community can know whether such association exists? Obviously, the leveraged relationships that cracked open in 2008 were, in principle (but only in part), public knowledge, whose significance was either not recognized or ignored. I get the feeling people are watching more closely this time. What might they see that should cause alarm?
Baltassar
No. of Recommendations: 8
No. of Recommendations: 3
No. of Recommendations: 1
Maybe it's time for a crypto board?
