No thoughts on the crypto crash?

[jyl]

One thing to consider:

If there is a "digital US Dollar" that everyone uses freely, then there is no more need for "bank deposit accounts".

No bank accounts means no "banks".

No banks means all lending moves to "non-bank lenders".

Non-bank lenders are, currently, among the least regulated, most opaque, and least-understood risk parts of the financial system. No-one knows how much leverage non-bank lenders (individually or in aggregate) have, how their loans are performing, if they are well run or recklessly run, if they are rock solid or a house of cards and about to blow up like Tricolor or those that lent to First Brands. There is no-one to seize a failing non-bank lender, shut it down, protect the rest of the financial system from chain reactions. The FDIC doesn't backstop them, the Federal Reserve doesn't regulate them, no states oversee them. They are basically the Wild West (not saying they are all reckless/risky, but no way to know which ones are).

One type of non-bank lender has publicly traded stock, so we can observe their prices. These are the "BDC" (business development corporation") names like BXSL OBDC ARCC TSLX MAIN. Oooo, not acting well.

But of course, until things blow up, it is possible for the connected to make tons of money with non-bank lenders. So that's one reason for the push for the "digital dollar".

[KFC911]

Spent a few years inside two bigly banks years ago ... but small compared to what they have evolved to now.

Moving 50 Billion each day through the Federal Reserve's central banking system (warts and all) was small 'taters even back then.

That system made the US economy second to none.... and it sucks in many ways

It's all digital imo ... 1s and 0s ... even gold, etc. for the most part and one big ol' Three Card Monte shell game.

Crypto is TCM on $teroid$ tho

I was a sucker in NYC once ... as a teen ... lost $40