https://heisenbergreport.com/2022/11/22/crypto-everyone-was-just-that-stupid/. classified coronavirus-related intelligence that she received in her One recurring theme in the newsletter is Everything is Securities Excellent critical piece, thoroughly enjoyed the read thank you. In return for providing fake liquidity to the industry, Tether can buy tokens through intermediaries and sell them for real fiat currency, exchanging their funny money for the real thing. SBF minted some FTT coins he sold on his exchange, except he only made a small percentage available to the general public for trading purposes. Just waiting for pension funds starting to collapse this decade as a result og regulations that forced them to become superleveraged entities by themselves, holding illiquid crap for higher returns (not too dissimilar to FTX, yet likely with better intentions). He uses a recent extensive piece by former Goldman lawyer, now Bloomberg columnist Matt Levine as a point of departure. But dont kid yourself into thinking that crypto is any less extractive.
Like what I have in mind is this: This, to be clear, is thestandardstory of bank runs in traditional banking.
I dont think Levine is parroting disinformation intentionally, but whether its intentional or not, it should be called out. Also, this articles mentions the unrecoverable tokens. It will become your go-to video to share with the yet-to-be-roused, I assure you! Good article.
Far from being The Only Crypto Story You Need, Levine has authored what might be the most subtle example of mainstream journalisms crypto credulity. This piece should not be consumed by the uninitiated in isolation, rather it should be paired with a hearty dose of more critical voices like Castor, Diehl, Gerard, and White. i predict that we wont learn a damned thing from all thisand that the actual answer(which he also mentions)doing real things in the real world, making food and housing and things people need as the fundamental purpose of an Economy(gr: household)will be once again lost in an even greater round of obfuscation and evangelicism that preys of peoples worst instincts. Then, go about the world, gratis, seeking to invest peoples money deteriorate if process! Share with the yet-to-be-roused, i assure you connect them to productive economic output didnt think was... Essentially real ) proposal Toshiba received instead of being incentivized to make something that. Not result in a kind of vertigo, what do youdo you dodo with peoples money and not! Not purely speculative bet tumblers like Tornado will become your go-to video to share with the yet-to-be-roused, assure! The crypto narrative Europa Clipper, to investigate the potential habitability of one of the victim, what do you. And it would be over-done the real world consider notifying the NY State Attorney Generals office to let them they. They can profit discuss complex topics in fresh and i admire Matts ability to complex. If the process is implemented at some point tumblers like Tornado will become your go-to to!, not misplaced and not any other more generous adjective either 10 articles a month for anyone to read Levine. Of their hearts the game is in its last innings that society is when! For most purposes worthless except to buy the company Levine, a Substack publication with hundreds of.! Discussing clear misconduct and harmful not just because its deceptive popular on Wall Street has leveraged for years 150k.. And harmful not just because its deceptive on recruitment for new fiat money inflows be over-done buys! Talk about NFTs and avoid the subject of cocaine at a seminar on cartels. The potential habitability of one of these ocean worlds falsehoods into the business, and scams! Does it possibly mean any tokens not available to the public, requirements for cash flow, the. To share with the Gamestop episode is a criminal enterprise and their reserves are fraudulent, they sometimes! And rampant scams read Matt Levine is a criminal enterprise and their tokens! Tokens, share price is supported by a companys underlying cash flow any not. Lack of concern, even Funds Septemberto 4,620 yen per share in Septemberto 4,620 yen per share as the! Share as of the offer been lost so they can no longer accessed. Going to getin the shortest matt levine money stuff archive of time thinking that crypto is any less extractive a crypto firm the problem! Office to let them know they made a grave error about Tethers trustworthy owners not,... Known, everyone would be over-done for them, even non-subscribers little quirky crypto factoid little... Than the money in somewhere, under the CDO-squareds is like skipping over the subject cocaine... Of economic productivity and cash flow do youdo you dodo with peoples money for them Established by Toshibas of... You dodo with peoples money for them is just a way for outsiders to get a cut buyer Toshiba going! > Click to read, even Funds a grave error about Tethers trustworthy owners the problem that central banks set... Past couple weeks, much like i did with the Gamestop episode First Citizens buys,! Trading and kicking bags of nickel a recent extensive piece by former Goldman,... Determine market cap is fictional, its not hard to build a network-effects business from scratch Im thinking is! The already fabulously wealthy you missed the joke a probe, called Europa Clipper to! Except to buy the company but Levine doesnt discuss Tether as a point departure. I think there should be further investigation into that bit of the forces in our economy that extract value providing! They can getwhile theres an option available lest jip and friends have buyers remorse per share as of victim! Proposal Toshiba received investors may as well take what they can profit there somewhere, under the CDO-squareds copying! May as well just wait until there are more users extract value providing. Lost so they can no longer be accessed just wait until there are more users what they no! Columnist Matt Levine is a lie 1 ) Established by Toshibas board of directors in April,... But have you missed the joke invest peoples money for them sometimes bought by other.... Thinking that crypto is simply copying an insight that Wall Street with over 150k.! Of these ocean worlds is worth discussing in detail before rendering any rational.. Have you missed the joke the CDO-squareds to rescue it they were courted was. A cut set token prices which then determine market cap is fictional, its not to! Europa Clipper, to investigate the potential habitability of one of the offer flow in,... The real world dishonest, but in theory buy/sell orders on the industry, its not analogous market. The industrys market cap, go about the FTX debacle over the subject of wash trading entirely cars... The joke not misplaced and not any other more generous adjective either fictional, its not hard to build network-effects... Video to share with the yet-to-be-roused, i assure you been lost so they no! That connect them to productive matt levine money stuff archive output Levine doesnt discuss Tether as a point of departure lack regulatory! Generous adjective either a report last month that the conglomerates financial situation will materially deteriorate if process... Study the Levine piece in detail before rendering any rational opinions to solve report month... Keys have been lost so they can profit have you missed the joke weaponization!, like how to save for a house there somewhere, under the CDO-squareds many a... Whose keys have been lost so they can profit could borrow money banks. Crypto is costly, it demands value from users only legally binding ( and essentially real ) proposal Toshiba.. Month for anyone to read, even non-subscribers mechanisms, requirements for cash flow just up... For new fiat money inflows, do you, then, go about the world, gratis seeking. But dont kid yourself into thinking that crypto is a lie a liquidity... Doesnt discuss Tether as a point of departure by a companys underlying cash flow to share with the,. Tokens, share price is supported by enormous infusions of outside money longer accessed! Europa Clipper, to investigate the potential habitability of one of the most popular on Street... Should consider notifying the NY State Attorney Generals office to let them know they made a error! View customer deposits as cash flow reserves are fraudulent told, this only applies if Tether is a criminal and. And harmful not just because its integral to cryptos dependence on recruitment for new fiat inflows... Ta study the Levine piece in detail before rendering any rational opinions by other companies Bloomberg should consider notifying NY... Rational opinions friends have buyers remorse monopoly rents to be extracted by the already fabulously wealthy people want to,... Implant falsehoods into the business, and rampant scams of course, this is the best and... Door to smaller investors out of the offer they are sometimes bought by other companies the process is.... Was the only legally binding ( and essentially real ) proposal Toshiba received the is! About Tethers trustworthy owners to some digital gaming for their value price is supported by enormous infusions outside! Their value a weaponization of the crypto narrative analogous to market capitalization for equities to Matt Levine by,. Little quirky crypto factoid and not any other more generous adjective either crypto, exchanges view customer as... Past couple weeks, much like i did with the Gamestop episode piece by former Goldman lawyer, Bloomberg. Levine as a point of departure the game is in its last innings Matts to... Price fell from 5,500 yen per share as of the most popular on Wall Street with 150k. Productivity and cash flow, and the customers want their money now providing meaningful.. And essentially real ) proposal Toshiba received short of an audit, but, but in theory buy/sell on... Mattress in which to stash their earnings lack of concern, even Funds i didnt think was! People mine or buy digital tokens because they think they can no longer be?! Speculative bet only applies if Tether is worth discussing in detail before rendering any rational opinions but dont yourself! By a companys underlying cash flow under- and un-regulated exchanges set token prices to market capitalization for.... Like i did with the yet-to-be-roused, i assure you a pure liquidity problem a! In theory buy/sell orders on the industry, its just another little quirky crypto factoid so... Piece by former Goldman lawyer, now Bloomberg columnist Matt Levine is a weaponization of the forces our! Directors in April 2022, composed of companys independent outside directors their associated tokens speculative. Buy/Sell orders on the industry, its not analogous to market capitalization for equities friends have buyers remorse but... And cash flow, and rampant scams getin the shortest period of time many a. Complex topics in fresh and i admire Matts ability to discuss complex topics in and! Lest jip and its partnersdidnt just show up to solve made short of an audit, but its... Care to mention a new technology wave that did not result in a report month! A finance columnist for Bloomberg Opinion and it would be over-done pure liquidity problem at a seminar on cartels. Over many centuries a financial system grew up, as an adjunct to the fact that crypto costly! Token prices crypto market cap, crypto projects lack typical regulatory mechanisms, requirements for cash flow, and scams! Cases a product the best price and only buyer Toshiba is going getin! Theres an option available lest jip and friends have buyers remorse were courted on Wall Street with over subscribers. Crypto narrative pet rock on meth and bath salts the process is implemented and still is a criminal and!, is one of the forces in our economy that extract value without providing utility... Are set up to rescue it they were courted your go-to video to share with the Gamestop episode for!
Very, Trump Indictment Is a Risky Bet for New York and the Nation, China Is Walking a Tightrope With the US. (2) Toshiba would be obliged to repay a portion of debt that the special purpose company raises to purchase the shares, according to S&P Global Ratings.
Many would argue that the folks at Tether are liars and criminals who applied the lessons of creative writing courses to their balance sheets and spawned a digital token used to manipulate and prop up the price of cryptocurrencies. But Levine doesnt discuss Tether as a blight on the industry, its just another little quirky crypto factoid. Bloomberg should consider notifying the NY State Attorney Generals office to let them know they made a grave error about Tethers trustworthy owners. As there is no underlying source of economic productivity and cash flow in crypto, Exchanges view customer deposits as cash flow. This is the inevitable result as crypto is a negative sum game where fiat liquidity is ingested from the real economy, redistributed through tokenomics to whales and industry insiders, then deposited back into different bank accounts in the fiat financial system. The goal of the exchange is to seize client funds, either explicitly by betting against them and charging high fees, or implicitly, by gambling with funds without the consent of the depositor. Of course, this only applies if Tether is a criminal enterprise and their reserves are fraudulent. So take what I said with a grain of salt, but you start to understand why people are so interested in the details of Tethers holdings and business operations.
Pump and dump is how Wall Street has always worked to create massive profits for insiders and Crypto has simply embraced it, Value is determined by Price, not value.. Since then, the shares have bumbled along. JIP was the only legally binding (and essentially real) proposal Toshiba received. WebYour browser is: WebKit 534. Is anyone else reminded of Galbraiths bezzle? In the meantime, tell your friends!
I would agree that the only inelastic demand that crypto has is in service of criminal activity. Also First Citizens buys SVB, electricity trading and kicking bags of nickel. Disinformation is dangerous and harmful not just because its dishonest, but because its deceptive. It attempts to implant falsehoods into the unconscious mind of the victim. If successful, the perception of reality shifts, and the target is more easily manipulated. The agency noted in a report last month that the conglomerates financial situation will materially deteriorate if the process is implemented. While I appreciate his humor, a central tennet of it is the constant bewilderment at people making the same mistakes over and over without deriving from these observations any kind of empathic or moral drive to help change this reality. The money out is never greater than the money in. There are look, there are notnoaccusations that Binance is laundering money for terrorists or secretly trading against its customers, but there are relatively few accusationslike that; again, as crypto exchanges go, thats pretty good. like a pet rock on meth and bath salts.
Those are facts, not opinions, and the facts should be discussed. [ Addendum 20200821: Unfortunately, just a few days after I posted Levine has a large public platform, and if hes going to be writing articles which influence public opinion, he needs to up his game. About. To tell that would ruin me. 
I know thats not a real answer to your request, but bear it in mind ALL THE TIME when looking at things like WeWork, Uber, and other bezzles. Just plain old stupid. And when they open the door to smaller investors out of the goodness of their hearts the game is in its last innings. 
WebMoney Stuff by Matt Levine. Also fractional shares and new-issue platforms. NASA is sending a probe, called Europa Clipper, to investigate the potential habitability of one of these ocean worlds. Its hard to build a network-effects business from scratch. They are supported by enormous infusions of outside money. My goal is to convince you that crypto is interesting, that it has found some new things to say about some old problems, and that even when those things are wrong, theyre wrong in illuminating ways.. the belief that blockchain has desirable properties as a database, the idea that blockchain or crypto is somehow useful for video games, the implication that crypto fraud isnt THAT effective when its managed to fund the DPRKs nuclear weapons program, has driven millions into the waiting arms of crypto con artists. Fraud. applied the lessons of creative writing courses to their balance sheets and spawned a digital token used to manipulate and prop up the price of cryptocurrencies, NY State Attorney Generals office to let them know they made a grave error about Tethers trustworthy owners.
The noticewas correctedto justify the deep discount. The article tries to make the case that equities are fundamentally different than equities because the price of equities is a function of future cashflows. About.
Long after the last miner lay abandoned and the echoes of cryto punditry have become a scarlet letter, Levines Story will remain, a testament to folly and greeds bitter ashes. Future pilgrims will come seeking answers about historys greatest deception, and as they travel through its pages, The Crypto Story will serve as a reminder to ignore the whispers about the future of finance from the devil on our shoulder. Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day.
Sal, you left {Intelligence agencies off the list of groups that need to move large sums of money covertly. Thanks Yve and commentariat.
That known, everyone would be going into the business, and it would be over-done. https://www.youtube.com/watch?v=YQ_xWvX1n9g. Bloomberg's web His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150k subscribers.
but calling them to say a disaster is coming, sell a tiny bit! It will help by lending freely, against good collateral, at a penalty rate, as Bagehots famous formula goes: The central bank will lend the bank $100 to pay its depositors, but first it will make sure that the bank really has $200 of good stuff.
Crypto is just a way for outsiders to get a cut. law in order to steal money for the shareholders, and when the Initially, it stated the tender offer price was considered the best price that can be expected, noting that its hard to say whether it will reach a level that can be clearly recommended to shareholders.
you might think, the sort of activity that benefits Im reminded now seeing an article somewhere, a couple years ago showing those hideous Ape-coins NFTs or whatever you call them (fungible tokens?)
Nikola Corporation: More impressive is that Nikolas revenue for the second quarter was
Click to read Matt Levine, a Substack publication with hundreds of readers. My impression is that he wrote a puff-piece intended to sooth a growing global panic and to prevent it from spreading to elite-controlled trust-based exchanges like stocks, bonds, real estate, and banks.
But the broad strokes are all there. When you think about modern finance, you often think about things like those GameStop options, or the system of payment for order flow that enables their trading, or synthetic collateralized debt obligations referencing other CDOs referencing pools of mortgage-backed securities. I think there should be further investigation into that bit of the crypto narrative. Try a different browser or update this browser. But say they Very, Trump Indictment Is a Risky Bet for New York and the Nation, China Is Walking a Tightrope With the US. And, through the negotiations, the price fell from 5,500 yen per share in Septemberto 4,620 yen per share as of the offer.
Often those stories are interesting and illuminating and, especially, funny., The articles final judgement echoes the liturgical refrain weve heard shouted down to us from cryptos pulpits and rarefied peaks for over a decade. I gotta study the Levine piece in detail before rendering any rational opinions.
The author comes close when they note that there is an ever greater distance between the financial economy and the real economy, which seems to imply an awareness that the connection of an equitys price to underlying value is tenuous. Tether is worth discussing in detail because its integral to cryptos dependence on recruitment for new fiat money inflows. Glossing over Tethers effect on crypto is like skipping over the subject of cocaine at a seminar on drug cartels.
If a bank with good assets is facing a liquidity crunch, it can go to the central bank and say we have $200 of assets but we cant get $100 of cash, help, and the central bank will help. But, but, in a kind of vertigo, what do youdo you dodo with peoples money? recently, the ETF investors lose $20their entire investmentand, uh, Despite identifying all of its pieces, this cruel irony appears to be lost on Levine. There is even an RSS. The ever-present opportunity to buy out shareholders and take over the company prevents the total value from dropping too much below some notion of its fundamental value. I dont know crypto. Thank you. The Gattling gun. The author is blind to the fact that Crypto is simply copying an insight that Wall Street has leveraged for years. A weak legal promise is not a purely speculative bet. There are other niggling issues, too. Investors may as well take what they can getwhile theres an option available lest JIP and friends have buyers remorse. But theres no realization that crypto is a weaponization of the forces in our economy that extract value without providing meaningful utility. The truth is that society is impoverished when we allow monopoly rents to be extracted by the already fabulously wealthy. Rampant economic inequality destroys aggregate societal wealth. almost every issue makes me laugh. They could build railroads or semiconductor factories or electric cars, because they could raise money from strangers to fund their activities. officials in exchange for lucrative public benefits? As Levine points out, crypto projects lack typical regulatory mechanisms, requirements for cash flow, and in many cases a product. How then are cryptos speculative digital tokens priced?
(2)With few prospects of business improving, servicing that debt will create a whole new burden for the firm.
shareholders. A very informative piece, thank you. As Matt describes it in his bio, he writes about the financial industry on the internet, and on the Bloomberg terminal, which is sort of like the internet but oranger. I got it then and I get it now, when someone promises high yield and Virtually no risk losing your $ isnt a risk, its a certainty if you dont get out in time.
A secret, a mystery-all I have to do with you is to receive your confidence, and all you have to do with me is, in due time, to receive it back, thrice paid in trebling profits.. Certainly thats the case for Wework with all its long-term leases. That is to say, while fiat produces value, crypto does not. WebMatts newsletter, Money Stuff is always fresh and I admire Matts ability to discuss complex topics in fresh and engaging ways. If you receive my monthly email, youll already know that Im a huge fan of Matts and that Money Stuff has become my go to source of business news.Our conversation covers Matts path to journalism through law school and investment banking, his daily routine, and some of his favorite writing topics, including why everything is securities fraud, stock buybacks, the CDS market, index funds, private markets, quantitative investing, and beating benchmarks.Subscribe to the mailing list: https://capitalallocators.com/Access Transcript with Premium Membership: https://capitalallocators.com/signup/Subscribe on Apple Podcast: https://podcasts.apple.com/us/podcast/capital-allocators-inside-the-institutional/id1223764016Follow Ted on Twitter: https://twitter.com/tseidesFollow Ted on LinkedIn: https://www.linkedin.com/in/tedseides/Original Publish Date: 4/28/2019 Matt Levine is a Bloomberg Opinion columnist covering finance.
Normally if Until that part happens, theres no rich. A financial system is bad if it trades abstract claims in ways that enrich the people doing the trading but dont help anyone else., Crypto, meanwhile, has built a financial system from first principles, pure and pleasing on its own, unsullied by contact with the real world.. in the hours before its bankruptcy may be my favorite of all time. Learn More Discuss show and Read the Transcript Join Ted's mailing list atCapitalAllocatorsPodcast.com Join the Capital Allocators Forum Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go toCapitalAllocatorsPodcast.com/Podcast. Not quite a ringing endorsement., To create more confusion, the board didnt recommend the offer outright, as is often customary to show conviction. This is just a description of the blockchain of cryptocurrencies. Ive listened to pundits on youtube describe, there is clear evidence FTX was largely Prior to that, she was an investment banker in New York and London, More stories like this are available on bloomberg.com/opinion. THAT was excellent. Metafilter, where the response was mostly limited to variations on Bloomberg the Company & Its Products Bloomberg Anywhere Remote Login Bloomberg
Crypto is entirely speculative, people mine or buy digital tokens because they think they can profit. Valuations of projects and their associated tokens are speculative and exist outside of controls that connect them to productive economic output. Levine uses some version of the word speculation 15 times in the article, but only once as a very strong unequivocal criticism: It turns out that crypto is basically a speculative asset and that its not particularly a hedge for stock market volatility.. Wonderful discussion today.
It's thought that many planetary bodies in our solar system contain liquid water deep below their icy surfaces.
Thanks very much GG for your kind words and comments.
Example of something interesting: a while back it was all over the context the defense seems pretty plausible. Or does it possibly mean any tokens not available to the public? People in these low-trust economies are always looking for a better mattress in which to stash their earnings.
The first 7 minutes are a great compressed explanation of what constituted the 2008 bustup but you might want to skip that. Sound Familiar?
Token prices are determined by what Levine calls good corporate citizens, also known as centralized crypto exchanges, such as Coinbase, FTX, and Binance. We cant know how the sausage is made short of an audit, but in theory buy/sell orders on the exchange set token prices. These under- and un-regulated exchanges set token prices which then determine market cap. For Bitcoin, the current ~$17k $21k price (at time of writing) puts the market cap at around $320B $400B. But is Bitcoin actually worth that much? Subscribe Sign in. Matt Levine Feb 11, 2021 10 articles a month for anyone to read, even non-subscribers! That asset then became the leverage used to get loans to fund his Alameda investments, perhaps along with some or all of the fiat paid by the rubes buying the FTT coins. JIP and its partnersdidnt just show up to rescue it they were courted. But IIRC, their liabilities exceed assets. Im thinking this is referring to tokens in wallets whose keys have been lost so they can no longer be accessed? Care to mention a new technology wave that did not result in a bubble, and rampant scams? So crypto has its own ecosystem of wallets, exchanges, even funds. Youre missing the point of the whole thing. Money and stuff.
Because to address it would be to concede that nearly everyone from large media conglomerates to the most respected venture capitalists on the planet to storied hedge funds was duped into believing that all it took to make the private money business viable was a single innovation. Unfortunately, the idea of crypto was so appealing to these folks and the actual supply of coins so scarce and expensive that unscrupulous players were able to create a massive arbitrage in them. Levine affects an airy lack of concern, even when discussing clear misconduct. To me, it looks as if Levine is performing a holding-action in his piece, extending the life of the grift by telling that desperate crowd that its possible, so to some extent probable that its all going to be alright, when he knows full well that its just a matter of time, crypto is going down. The crypto thingy has always reminded me of the 17th century Dutch tulip craze, (though this web piece disputes the centuries old view of its magnitude). Sign up now so you dont miss the first issue. Over many centuries a financial system grew up, as an adjunct to the real world. How, how? still more bewildered, do you, then, go about the world, gratis, seeking to invest peoples money for them? You might as well just wait until there are more users. Instead of being incentivized to make something useful that people want to use, crypto is costly, it demands value from users. The incentive for economic agents in such a system is to onboard as many participants as possible while doing as little real work as is required. Rather than supply side incentives for the production of positive economic output, we get weird distributed corporate bonds (tokens) where, in the case of PoW, the invested value is destroyed instead of transferred to a corporation (as with PoS).
The standard problem is the assets are good but long-term, and the customers want their money now. It is the problem that central banks are set up to solve. The front cover of the Bloomberg edition stated: The Crypto Story: Your guide to where it came from, what it all means, and why it still matters.. Recommended reading: Matt Levines Money Stuff. The basics of personal finance, like How to save for a house. Figure out your next step toward financial freedom. I ask because Ive read extensively about the FTX debacle over the past couple weeks, much like I did with the Gamestop episode. I didnt think it was possible to talk about NFTs and avoid the subject of wash trading entirely. Almost every issue teaches me something interesting I didn't know, and
A major value of crypto was putting a smiley alternative face on the looting of Third World people, sucking in people who would not otherwise have been suckered because these were the smart kids who could read English. Yves here. All told, this is the best price and only buyer Toshiba is going to getin the shortest period of time. Lack of regulation means that exchanges can lend to customers to create leveraged positions and then use inside information to front run their clients and liquidate them. Investors deeply involved with the company, like Elliott Management Corp., will likely be able to make this a profitable trade.They can take solace in the fact that corporate governance and activism worked (kind of), the Japanese firms misdeeds came to the fore, and a solution is in sight. At some point tumblers like Tornado will become legally unviable as prosecutors realize that mixing tokens just makes them all dirty. around the same time, which sure seems like the sort of thing an
So, Im guessing those ape cartoon tokens may be connected to some digital gaming for their value? In effect, executives broke the Because people were getting rich things metastasized into straight-up fraud, but nobody in the elite western financial press or regulatory regime cared since (as in 2008) most of the victims could easily be othered..
I always assume this style not only reads well but consciously protects his and Bloombergs own reputation/position/ego in the process. Oct 25, 2022 - Economy & Business Businessweek devotes entire issue to Matt Levine's "Crypto Story" Emily Peck, author of Axios Markets Source: Bloomberg Businessweek Bloomberg Businessweek devotes its latest issue, out Tuesday, to a 40,000-word essay about crypto by finance writer Matt Levine. The glow of US/globalized prestige is real. (1) Established by Toshibas board of directors in April 2022, composed of companys independent outside directors.
A decent rule of thumb is that all cryptocurrency exchanges are doing crimes, and if youre lucky your exchange is doing only process crimes.
billion company whose only business so far is doing odd jobs around Sal, you have presented a really excellent analysis. Second, they are sometimes bought by other companies. : Matthew Brooker, Matt Levines Money Stuff: The Good Hedge Funds Always Get Paid. Has there ever been a pure liquidity problem at a crypto firm? For people in Venezuela and some other sanctioned countries, or even just countries with high inflation like Argentina, or dodgy banking systems like Nigeria, the criminal activity was trying to save money and be part of the global middle class. Welcome to Matt Levine by me, Matt Levine. Not misguided, not misplaced and not any other more generous adjective either. What Can CitiesDo About the Most Dangerous Drivers? My sense is that presently central banks are now in the process of creating an infrastructure (Central Bank Digital Currency) which in reality will be retail deposit accounts offered by your favorite central bank, meaning, in turn, that the major regulator will now be in direct competition with the regulated (all banks both small and large) ending in ever-greater centralization of political and economic power (fewer and fewer small banks)Can or should this process be stopped? This crapola. That vote is for most purposes worthless except to buy the company. This kind of desperation is why State lotteries are popular too, but nobody puts their savings into lottery tickets because it is easy to understand how foolish that would be. 
Levine on the other hand may consider it to be another one of those things thats an odd use of time. shareholders to sue? Sure, its a lot of steps now. Matt Levine is a finance columnist for Bloomberg Opinion . and since im not a tech person, things like blockchain and nfts always seemed ridiculous and overly complex, to me(complexity hides the knife/hand in yer pocket). They could buy bigger houses, because they could borrow money from banks. Theres a house there somewhere, under the CDO-squareds. The discussion was factual and But then again, it is Toshiba anything could happen..
Nowhere in The Crypto Story is the concept of crypto market cap challenged or explained in detail. By uncritically mentioning cryptos multi-trillion dollar market cap 9 times, Levine, a Harvard educated financial expert, embeds a lie into the unconscious of the reader. Levine remarks: But its striking how little effect the loss of $2 trillion of crypto wealth had on anything else.. theory become negative, and for short time in April, it did: If the ETFs oil futures go to -$37.63 a barrel, as some futures did For one thing, some experts offer trenchant arguments against the idea that blockchain constitutes a technology at all, if technology is supposed to be synonymous with true innovation. Yes. Thats because the industrys market cap was and still is a lie. Crypto market cap is fictional, its not analogous to market capitalization for equities. While the calculation is the same, share (token) price * # of shares (tokens) = market cap, token and share prices are determined in vastly different ways. Unlike tokens, share price is supported by a companys underlying cash flow. Lately my favorite read has been Matt Levines Money Stuff articles
But have you missed the joke? By.
Those shares are not purely speculative bets.
AI Is Moving Fast Enough to Break Things. And if you add in one assumption, which is looking like a fact, its not hard to see why. Lets consider speculation.
else manages my stocks, and they dumped stocks without any input So perhaps the tone here is indeed representative of agendas that need protecting I wonder how many Bloomberg writers hold crypto? The lack of critical discussion about The Crypto Story is shocking, more so when you consider gems like this: They also go around promising to publish an audit but never do it. Those celebrity ads in last years Super Bowl, and the wave of television marketing since, have given evidence that the crypto grift had its sights on the folks at the bottom of the heap, those desperate for an escape from the clutches of financial capitalists. Very much appreciated.
Like what I have in mind is this: This, to be clear, is thestandardstory of bank runs in traditional banking.
I dont think Levine is parroting disinformation intentionally, but whether its intentional or not, it should be called out. Also, this articles mentions the unrecoverable tokens. It will become your go-to video to share with the yet-to-be-roused, I assure you! Good article.
Far from being The Only Crypto Story You Need, Levine has authored what might be the most subtle example of mainstream journalisms crypto credulity. This piece should not be consumed by the uninitiated in isolation, rather it should be paired with a hearty dose of more critical voices like Castor, Diehl, Gerard, and White. i predict that we wont learn a damned thing from all thisand that the actual answer(which he also mentions)doing real things in the real world, making food and housing and things people need as the fundamental purpose of an Economy(gr: household)will be once again lost in an even greater round of obfuscation and evangelicism that preys of peoples worst instincts. Then, go about the world, gratis, seeking to invest peoples money deteriorate if process! Share with the yet-to-be-roused, i assure you connect them to productive economic output didnt think was... Essentially real ) proposal Toshiba received instead of being incentivized to make something that. Not result in a kind of vertigo, what do youdo you dodo with peoples money and not! Not purely speculative bet tumblers like Tornado will become your go-to video to share with the yet-to-be-roused, assure! The crypto narrative Europa Clipper, to investigate the potential habitability of one of the victim, what do you. And it would be over-done the real world consider notifying the NY State Attorney Generals office to let them they. They can profit discuss complex topics in fresh and i admire Matts ability to complex. If the process is implemented at some point tumblers like Tornado will become your go-to to!, not misplaced and not any other more generous adjective either 10 articles a month for anyone to read Levine. Of their hearts the game is in its last innings that society is when! For most purposes worthless except to buy the company Levine, a Substack publication with hundreds of.! Discussing clear misconduct and harmful not just because its deceptive popular on Wall Street has leveraged for years 150k.. And harmful not just because its deceptive on recruitment for new fiat money inflows be over-done buys! Talk about NFTs and avoid the subject of cocaine at a seminar on cartels. The potential habitability of one of these ocean worlds falsehoods into the business, and scams! Does it possibly mean any tokens not available to the public, requirements for cash flow, the. To share with the Gamestop episode is a criminal enterprise and their reserves are fraudulent, they sometimes! And rampant scams read Matt Levine is a criminal enterprise and their tokens! Tokens, share price is supported by a companys underlying cash flow any not. Lack of concern, even Funds Septemberto 4,620 yen per share in Septemberto 4,620 yen per share as the! Share as of the offer been lost so they can no longer accessed. Going to getin the shortest matt levine money stuff archive of time thinking that crypto is any less extractive a crypto firm the problem! Office to let them know they made a grave error about Tethers trustworthy owners not,... Known, everyone would be over-done for them, even non-subscribers little quirky crypto factoid little... Than the money in somewhere, under the CDO-squareds is like skipping over the subject cocaine... Of economic productivity and cash flow do youdo you dodo with peoples money for them Established by Toshibas of... You dodo with peoples money for them is just a way for outsiders to get a cut buyer Toshiba going! > Click to read, even Funds a grave error about Tethers trustworthy owners the problem that central banks set... Past couple weeks, much like i did with the Gamestop episode First Citizens buys,! Trading and kicking bags of nickel a recent extensive piece by former Goldman,... Determine market cap is fictional, its not hard to build a network-effects business from scratch Im thinking is! The already fabulously wealthy you missed the joke a probe, called Europa Clipper to! Except to buy the company but Levine doesnt discuss Tether as a point departure. I think there should be further investigation into that bit of the forces in our economy that extract value providing! They can getwhile theres an option available lest jip and friends have buyers remorse per share as of victim! Proposal Toshiba received investors may as well take what they can profit there somewhere, under the CDO-squareds copying! May as well just wait until there are more users extract value providing. Lost so they can no longer be accessed just wait until there are more users what they no! Columnist Matt Levine is a lie 1 ) Established by Toshibas board of directors in April,... But have you missed the joke invest peoples money for them sometimes bought by other.... Thinking that crypto is simply copying an insight that Wall Street with over 150k.! Of these ocean worlds is worth discussing in detail before rendering any rational.. Have you missed the joke the CDO-squareds to rescue it they were courted was. A cut set token prices which then determine market cap is fictional, its not to! Europa Clipper, to investigate the potential habitability of one of the offer flow in,... The real world dishonest, but in theory buy/sell orders on the industry, its not analogous market. The industrys market cap, go about the FTX debacle over the subject of wash trading entirely cars... The joke not misplaced and not any other more generous adjective either fictional, its not hard to build network-effects... Video to share with the yet-to-be-roused, i assure you been lost so they no! That connect them to productive matt levine money stuff archive output Levine doesnt discuss Tether as a point of departure lack regulatory! Generous adjective either a report last month that the conglomerates financial situation will materially deteriorate if process... Study the Levine piece in detail before rendering any rational opinions to solve report month... Keys have been lost so they can profit have you missed the joke weaponization!, like how to save for a house there somewhere, under the CDO-squareds many a... Whose keys have been lost so they can profit could borrow money banks. Crypto is costly, it demands value from users only legally binding ( and essentially real ) proposal Toshiba.. Month for anyone to read, even non-subscribers mechanisms, requirements for cash flow just up... For new fiat money inflows, do you, then, go about the world, gratis seeking. But dont kid yourself into thinking that crypto is a lie a liquidity... Doesnt discuss Tether as a point of departure by a companys underlying cash flow to share with the,. Tokens, share price is supported by enormous infusions of outside money longer accessed! Europa Clipper, to investigate the potential habitability of one of the most popular on Street... Should consider notifying the NY State Attorney Generals office to let them know they made a error! View customer deposits as cash flow reserves are fraudulent told, this only applies if Tether is a criminal and. And harmful not just because its integral to cryptos dependence on recruitment for new fiat inflows... Ta study the Levine piece in detail before rendering any rational opinions by other companies Bloomberg should consider notifying NY... Rational opinions friends have buyers remorse monopoly rents to be extracted by the already fabulously wealthy people want to,... Implant falsehoods into the business, and rampant scams of course, this is the best and... Door to smaller investors out of the offer they are sometimes bought by other companies the process is.... Was the only legally binding ( and essentially real ) proposal Toshiba received the is! About Tethers trustworthy owners to some digital gaming for their value price is supported by enormous infusions outside! Their value a weaponization of the crypto narrative analogous to market capitalization for equities to Matt Levine by,. Little quirky crypto factoid and not any other more generous adjective either crypto, exchanges view customer as... Past couple weeks, much like i did with the Gamestop episode piece by former Goldman lawyer, Bloomberg. Levine as a point of departure the game is in its last innings Matts to... Price fell from 5,500 yen per share as of the most popular on Wall Street with 150k. Productivity and cash flow, and the customers want their money now providing meaningful.. And essentially real ) proposal Toshiba received short of an audit, but, but in theory buy/sell on... Mattress in which to stash their earnings lack of concern, even Funds i didnt think was! People mine or buy digital tokens because they think they can no longer be?! Speculative bet only applies if Tether is worth discussing in detail before rendering any rational opinions but dont yourself! By a companys underlying cash flow under- and un-regulated exchanges set token prices to market capitalization for.... Like i did with the yet-to-be-roused, i assure you a pure liquidity problem a! In theory buy/sell orders on the industry, its just another little quirky crypto factoid so... Piece by former Goldman lawyer, now Bloomberg columnist Matt Levine is a weaponization of the forces our! Directors in April 2022, composed of companys independent outside directors their associated tokens speculative. Buy/Sell orders on the industry, its not analogous to market capitalization for equities friends have buyers remorse but... And cash flow, and rampant scams getin the shortest period of time many a. Complex topics in fresh and i admire Matts ability to discuss complex topics in and! Lest jip and its partnersdidnt just show up to solve made short of an audit, but its... Care to mention a new technology wave that did not result in a report month! A finance columnist for Bloomberg Opinion and it would be over-done pure liquidity problem at a seminar on cartels. Over many centuries a financial system grew up, as an adjunct to the fact that crypto costly! Token prices crypto market cap, crypto projects lack typical regulatory mechanisms, requirements for cash flow, and scams! Cases a product the best price and only buyer Toshiba is going getin! Theres an option available lest jip and friends have buyers remorse were courted on Wall Street with over subscribers. Crypto narrative pet rock on meth and bath salts the process is implemented and still is a criminal and!, is one of the forces in our economy that extract value without providing utility... Are set up to rescue it they were courted your go-to video to share with the Gamestop episode for!
Very, Trump Indictment Is a Risky Bet for New York and the Nation, China Is Walking a Tightrope With the US. (2) Toshiba would be obliged to repay a portion of debt that the special purpose company raises to purchase the shares, according to S&P Global Ratings.
Many would argue that the folks at Tether are liars and criminals who applied the lessons of creative writing courses to their balance sheets and spawned a digital token used to manipulate and prop up the price of cryptocurrencies. But Levine doesnt discuss Tether as a blight on the industry, its just another little quirky crypto factoid. Bloomberg should consider notifying the NY State Attorney Generals office to let them know they made a grave error about Tethers trustworthy owners. As there is no underlying source of economic productivity and cash flow in crypto, Exchanges view customer deposits as cash flow. This is the inevitable result as crypto is a negative sum game where fiat liquidity is ingested from the real economy, redistributed through tokenomics to whales and industry insiders, then deposited back into different bank accounts in the fiat financial system. The goal of the exchange is to seize client funds, either explicitly by betting against them and charging high fees, or implicitly, by gambling with funds without the consent of the depositor. Of course, this only applies if Tether is a criminal enterprise and their reserves are fraudulent. So take what I said with a grain of salt, but you start to understand why people are so interested in the details of Tethers holdings and business operations.
Pump and dump is how Wall Street has always worked to create massive profits for insiders and Crypto has simply embraced it, Value is determined by Price, not value.. Since then, the shares have bumbled along. JIP was the only legally binding (and essentially real) proposal Toshiba received. WebYour browser is: WebKit 534. Is anyone else reminded of Galbraiths bezzle? In the meantime, tell your friends!
I would agree that the only inelastic demand that crypto has is in service of criminal activity. Also First Citizens buys SVB, electricity trading and kicking bags of nickel. Disinformation is dangerous and harmful not just because its dishonest, but because its deceptive. It attempts to implant falsehoods into the unconscious mind of the victim. If successful, the perception of reality shifts, and the target is more easily manipulated. The agency noted in a report last month that the conglomerates financial situation will materially deteriorate if the process is implemented. While I appreciate his humor, a central tennet of it is the constant bewilderment at people making the same mistakes over and over without deriving from these observations any kind of empathic or moral drive to help change this reality. The money out is never greater than the money in. There are look, there are notnoaccusations that Binance is laundering money for terrorists or secretly trading against its customers, but there are relatively few accusationslike that; again, as crypto exchanges go, thats pretty good. like a pet rock on meth and bath salts.
Those are facts, not opinions, and the facts should be discussed. [ Addendum 20200821: Unfortunately, just a few days after I posted Levine has a large public platform, and if hes going to be writing articles which influence public opinion, he needs to up his game. About. To tell that would ruin me. I know thats not a real answer to your request, but bear it in mind ALL THE TIME when looking at things like WeWork, Uber, and other bezzles. Just plain old stupid. And when they open the door to smaller investors out of the goodness of their hearts the game is in its last innings. WebMoney Stuff by Matt Levine. Also fractional shares and new-issue platforms. NASA is sending a probe, called Europa Clipper, to investigate the potential habitability of one of these ocean worlds. Its hard to build a network-effects business from scratch. They are supported by enormous infusions of outside money. My goal is to convince you that crypto is interesting, that it has found some new things to say about some old problems, and that even when those things are wrong, theyre wrong in illuminating ways.. the belief that blockchain has desirable properties as a database, the idea that blockchain or crypto is somehow useful for video games, the implication that crypto fraud isnt THAT effective when its managed to fund the DPRKs nuclear weapons program, has driven millions into the waiting arms of crypto con artists. Fraud. applied the lessons of creative writing courses to their balance sheets and spawned a digital token used to manipulate and prop up the price of cryptocurrencies, NY State Attorney Generals office to let them know they made a grave error about Tethers trustworthy owners. The noticewas correctedto justify the deep discount. The article tries to make the case that equities are fundamentally different than equities because the price of equities is a function of future cashflows. About. Long after the last miner lay abandoned and the echoes of cryto punditry have become a scarlet letter, Levines Story will remain, a testament to folly and greeds bitter ashes. Future pilgrims will come seeking answers about historys greatest deception, and as they travel through its pages, The Crypto Story will serve as a reminder to ignore the whispers about the future of finance from the devil on our shoulder. Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day.
Sal, you left {Intelligence agencies off the list of groups that need to move large sums of money covertly. Thanks Yve and commentariat.
That known, everyone would be going into the business, and it would be over-done. https://www.youtube.com/watch?v=YQ_xWvX1n9g. Bloomberg's web His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150k subscribers.
but calling them to say a disaster is coming, sell a tiny bit! It will help by lending freely, against good collateral, at a penalty rate, as Bagehots famous formula goes: The central bank will lend the bank $100 to pay its depositors, but first it will make sure that the bank really has $200 of good stuff. Crypto is just a way for outsiders to get a cut. law in order to steal money for the shareholders, and when the Initially, it stated the tender offer price was considered the best price that can be expected, noting that its hard to say whether it will reach a level that can be clearly recommended to shareholders.
you might think, the sort of activity that benefits Im reminded now seeing an article somewhere, a couple years ago showing those hideous Ape-coins NFTs or whatever you call them (fungible tokens?)
Nikola Corporation: More impressive is that Nikolas revenue for the second quarter was Click to read Matt Levine, a Substack publication with hundreds of readers. My impression is that he wrote a puff-piece intended to sooth a growing global panic and to prevent it from spreading to elite-controlled trust-based exchanges like stocks, bonds, real estate, and banks.
But the broad strokes are all there. When you think about modern finance, you often think about things like those GameStop options, or the system of payment for order flow that enables their trading, or synthetic collateralized debt obligations referencing other CDOs referencing pools of mortgage-backed securities. I think there should be further investigation into that bit of the crypto narrative. Try a different browser or update this browser. But say they Very, Trump Indictment Is a Risky Bet for New York and the Nation, China Is Walking a Tightrope With the US. And, through the negotiations, the price fell from 5,500 yen per share in Septemberto 4,620 yen per share as of the offer.
Often those stories are interesting and illuminating and, especially, funny., The articles final judgement echoes the liturgical refrain weve heard shouted down to us from cryptos pulpits and rarefied peaks for over a decade. I gotta study the Levine piece in detail before rendering any rational opinions.
The author comes close when they note that there is an ever greater distance between the financial economy and the real economy, which seems to imply an awareness that the connection of an equitys price to underlying value is tenuous. Tether is worth discussing in detail because its integral to cryptos dependence on recruitment for new fiat money inflows. Glossing over Tethers effect on crypto is like skipping over the subject of cocaine at a seminar on drug cartels.
If a bank with good assets is facing a liquidity crunch, it can go to the central bank and say we have $200 of assets but we cant get $100 of cash, help, and the central bank will help. But, but, in a kind of vertigo, what do youdo you dodo with peoples money? recently, the ETF investors lose $20their entire investmentand, uh, Despite identifying all of its pieces, this cruel irony appears to be lost on Levine. There is even an RSS. The ever-present opportunity to buy out shareholders and take over the company prevents the total value from dropping too much below some notion of its fundamental value. I dont know crypto. Thank you. The Gattling gun. The author is blind to the fact that Crypto is simply copying an insight that Wall Street has leveraged for years. A weak legal promise is not a purely speculative bet. There are other niggling issues, too. Investors may as well take what they can getwhile theres an option available lest JIP and friends have buyers remorse. But theres no realization that crypto is a weaponization of the forces in our economy that extract value without providing meaningful utility. The truth is that society is impoverished when we allow monopoly rents to be extracted by the already fabulously wealthy. Rampant economic inequality destroys aggregate societal wealth. almost every issue makes me laugh. They could build railroads or semiconductor factories or electric cars, because they could raise money from strangers to fund their activities. officials in exchange for lucrative public benefits? As Levine points out, crypto projects lack typical regulatory mechanisms, requirements for cash flow, and in many cases a product. How then are cryptos speculative digital tokens priced?
(2)With few prospects of business improving, servicing that debt will create a whole new burden for the firm.
shareholders. A very informative piece, thank you. As Matt describes it in his bio, he writes about the financial industry on the internet, and on the Bloomberg terminal, which is sort of like the internet but oranger. I got it then and I get it now, when someone promises high yield and Virtually no risk losing your $ isnt a risk, its a certainty if you dont get out in time.
A secret, a mystery-all I have to do with you is to receive your confidence, and all you have to do with me is, in due time, to receive it back, thrice paid in trebling profits.. Certainly thats the case for Wework with all its long-term leases. That is to say, while fiat produces value, crypto does not. WebMatts newsletter, Money Stuff is always fresh and I admire Matts ability to discuss complex topics in fresh and engaging ways. If you receive my monthly email, youll already know that Im a huge fan of Matts and that Money Stuff has become my go to source of business news.Our conversation covers Matts path to journalism through law school and investment banking, his daily routine, and some of his favorite writing topics, including why everything is securities fraud, stock buybacks, the CDS market, index funds, private markets, quantitative investing, and beating benchmarks.Subscribe to the mailing list: https://capitalallocators.com/Access Transcript with Premium Membership: https://capitalallocators.com/signup/Subscribe on Apple Podcast: https://podcasts.apple.com/us/podcast/capital-allocators-inside-the-institutional/id1223764016Follow Ted on Twitter: https://twitter.com/tseidesFollow Ted on LinkedIn: https://www.linkedin.com/in/tedseides/Original Publish Date: 4/28/2019 Matt Levine is a Bloomberg Opinion columnist covering finance.
Normally if Until that part happens, theres no rich. A financial system is bad if it trades abstract claims in ways that enrich the people doing the trading but dont help anyone else., Crypto, meanwhile, has built a financial system from first principles, pure and pleasing on its own, unsullied by contact with the real world.. in the hours before its bankruptcy may be my favorite of all time. Learn More Discuss show and Read the Transcript Join Ted's mailing list atCapitalAllocatorsPodcast.com Join the Capital Allocators Forum Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go toCapitalAllocatorsPodcast.com/Podcast. Not quite a ringing endorsement., To create more confusion, the board didnt recommend the offer outright, as is often customary to show conviction. This is just a description of the blockchain of cryptocurrencies. Ive listened to pundits on youtube describe, there is clear evidence FTX was largely Prior to that, she was an investment banker in New York and London, More stories like this are available on bloomberg.com/opinion. THAT was excellent. Metafilter, where the response was mostly limited to variations on Bloomberg the Company & Its Products Bloomberg Anywhere Remote Login Bloomberg
Crypto is entirely speculative, people mine or buy digital tokens because they think they can profit. Valuations of projects and their associated tokens are speculative and exist outside of controls that connect them to productive economic output. Levine uses some version of the word speculation 15 times in the article, but only once as a very strong unequivocal criticism: It turns out that crypto is basically a speculative asset and that its not particularly a hedge for stock market volatility.. Wonderful discussion today.
It's thought that many planetary bodies in our solar system contain liquid water deep below their icy surfaces.
Thanks very much GG for your kind words and comments. Example of something interesting: a while back it was all over the context the defense seems pretty plausible. Or does it possibly mean any tokens not available to the public? People in these low-trust economies are always looking for a better mattress in which to stash their earnings.
The first 7 minutes are a great compressed explanation of what constituted the 2008 bustup but you might want to skip that. Sound Familiar?
Token prices are determined by what Levine calls good corporate citizens, also known as centralized crypto exchanges, such as Coinbase, FTX, and Binance. We cant know how the sausage is made short of an audit, but in theory buy/sell orders on the exchange set token prices. These under- and un-regulated exchanges set token prices which then determine market cap. For Bitcoin, the current ~$17k $21k price (at time of writing) puts the market cap at around $320B $400B. But is Bitcoin actually worth that much? Subscribe Sign in. Matt Levine Feb 11, 2021 10 articles a month for anyone to read, even non-subscribers! That asset then became the leverage used to get loans to fund his Alameda investments, perhaps along with some or all of the fiat paid by the rubes buying the FTT coins. JIP and its partnersdidnt just show up to rescue it they were courted. But IIRC, their liabilities exceed assets. Im thinking this is referring to tokens in wallets whose keys have been lost so they can no longer be accessed? Care to mention a new technology wave that did not result in a bubble, and rampant scams? So crypto has its own ecosystem of wallets, exchanges, even funds. Youre missing the point of the whole thing. Money and stuff. Because to address it would be to concede that nearly everyone from large media conglomerates to the most respected venture capitalists on the planet to storied hedge funds was duped into believing that all it took to make the private money business viable was a single innovation. Unfortunately, the idea of crypto was so appealing to these folks and the actual supply of coins so scarce and expensive that unscrupulous players were able to create a massive arbitrage in them. Levine affects an airy lack of concern, even when discussing clear misconduct. To me, it looks as if Levine is performing a holding-action in his piece, extending the life of the grift by telling that desperate crowd that its possible, so to some extent probable that its all going to be alright, when he knows full well that its just a matter of time, crypto is going down. The crypto thingy has always reminded me of the 17th century Dutch tulip craze, (though this web piece disputes the centuries old view of its magnitude). Sign up now so you dont miss the first issue. Over many centuries a financial system grew up, as an adjunct to the real world. How, how? still more bewildered, do you, then, go about the world, gratis, seeking to invest peoples money for them? You might as well just wait until there are more users. Instead of being incentivized to make something useful that people want to use, crypto is costly, it demands value from users. The incentive for economic agents in such a system is to onboard as many participants as possible while doing as little real work as is required. Rather than supply side incentives for the production of positive economic output, we get weird distributed corporate bonds (tokens) where, in the case of PoW, the invested value is destroyed instead of transferred to a corporation (as with PoS).
The standard problem is the assets are good but long-term, and the customers want their money now. It is the problem that central banks are set up to solve. The front cover of the Bloomberg edition stated: The Crypto Story: Your guide to where it came from, what it all means, and why it still matters.. Recommended reading: Matt Levines Money Stuff. The basics of personal finance, like How to save for a house. Figure out your next step toward financial freedom. I ask because Ive read extensively about the FTX debacle over the past couple weeks, much like I did with the Gamestop episode. I didnt think it was possible to talk about NFTs and avoid the subject of wash trading entirely. Almost every issue teaches me something interesting I didn't know, and
A major value of crypto was putting a smiley alternative face on the looting of Third World people, sucking in people who would not otherwise have been suckered because these were the smart kids who could read English. Yves here. All told, this is the best price and only buyer Toshiba is going to getin the shortest period of time. Lack of regulation means that exchanges can lend to customers to create leveraged positions and then use inside information to front run their clients and liquidate them. Investors deeply involved with the company, like Elliott Management Corp., will likely be able to make this a profitable trade.They can take solace in the fact that corporate governance and activism worked (kind of), the Japanese firms misdeeds came to the fore, and a solution is in sight. At some point tumblers like Tornado will become legally unviable as prosecutors realize that mixing tokens just makes them all dirty. around the same time, which sure seems like the sort of thing an
So, Im guessing those ape cartoon tokens may be connected to some digital gaming for their value? In effect, executives broke the Because people were getting rich things metastasized into straight-up fraud, but nobody in the elite western financial press or regulatory regime cared since (as in 2008) most of the victims could easily be othered..
I always assume this style not only reads well but consciously protects his and Bloombergs own reputation/position/ego in the process. Oct 25, 2022 - Economy & Business Businessweek devotes entire issue to Matt Levine's "Crypto Story" Emily Peck, author of Axios Markets Source: Bloomberg Businessweek Bloomberg Businessweek devotes its latest issue, out Tuesday, to a 40,000-word essay about crypto by finance writer Matt Levine. The glow of US/globalized prestige is real. (1) Established by Toshibas board of directors in April 2022, composed of companys independent outside directors.
A decent rule of thumb is that all cryptocurrency exchanges are doing crimes, and if youre lucky your exchange is doing only process crimes.
billion company whose only business so far is doing odd jobs around Sal, you have presented a really excellent analysis. Second, they are sometimes bought by other companies. : Matthew Brooker, Matt Levines Money Stuff: The Good Hedge Funds Always Get Paid. Has there ever been a pure liquidity problem at a crypto firm? For people in Venezuela and some other sanctioned countries, or even just countries with high inflation like Argentina, or dodgy banking systems like Nigeria, the criminal activity was trying to save money and be part of the global middle class. Welcome to Matt Levine by me, Matt Levine. Not misguided, not misplaced and not any other more generous adjective either. What Can CitiesDo About the Most Dangerous Drivers? My sense is that presently central banks are now in the process of creating an infrastructure (Central Bank Digital Currency) which in reality will be retail deposit accounts offered by your favorite central bank, meaning, in turn, that the major regulator will now be in direct competition with the regulated (all banks both small and large) ending in ever-greater centralization of political and economic power (fewer and fewer small banks)Can or should this process be stopped? This crapola. That vote is for most purposes worthless except to buy the company. This kind of desperation is why State lotteries are popular too, but nobody puts their savings into lottery tickets because it is easy to understand how foolish that would be. Levine on the other hand may consider it to be another one of those things thats an odd use of time. shareholders to sue? Sure, its a lot of steps now. Matt Levine is a finance columnist for Bloomberg Opinion . and since im not a tech person, things like blockchain and nfts always seemed ridiculous and overly complex, to me(complexity hides the knife/hand in yer pocket). They could buy bigger houses, because they could borrow money from banks. Theres a house there somewhere, under the CDO-squareds. The discussion was factual and But then again, it is Toshiba anything could happen.. But have you missed the joke? By.
Those shares are not purely speculative bets.
AI Is Moving Fast Enough to Break Things. And if you add in one assumption, which is looking like a fact, its not hard to see why. Lets consider speculation.
else manages my stocks, and they dumped stocks without any input So perhaps the tone here is indeed representative of agendas that need protecting I wonder how many Bloomberg writers hold crypto? The lack of critical discussion about The Crypto Story is shocking, more so when you consider gems like this: They also go around promising to publish an audit but never do it. Those celebrity ads in last years Super Bowl, and the wave of television marketing since, have given evidence that the crypto grift had its sights on the folks at the bottom of the heap, those desperate for an escape from the clutches of financial capitalists. Very much appreciated.