Replying to Avatar Byzantine

another way to think about this is that there is a "debt to collateral mismatch"

"too much debt and the value of things backing the debt is now worth less."

People with dollar denominated debt need to use dollar denominated assets much of which is treasuries now worth less than they were a year ago.

#[0]
Avatar
Lyn Alden 2y ago

It's funny because it's true, and because the collateral is also debt.

"Our debts are collateralized by assets, which are someone else's debt, and those debt-assets went down in price a lot relative to our debt."

Reply to this note

Please Login to reply.

Discussion

Avatar
Byzantine 2y ago

"it is debt all the way down"

👇

#[0]

Avatar
Des Imoto マキシ 2y ago

Layers upon layers of corruption and manipulation…why waste time untangling it? I like his quote:

The reason I'm in BTC is that I have no clue what's going on in fiat but I know exactly what's going on in Bitcoin. - j lopp

Avatar
Byzantine 2y ago

agreed.

but if you want to know about history and the current system this is how it works.