Banks shouldn't be taking unnecessary risks with user funds to earn yield for themselves. Otherwise, it's just a variant of Celcius, FTX, & Quadriga
Users should expect to get their money back, period
Keep fighting the good fight #[0]
Discussion
Problem is they are incentivized to take risk. It’s a systemic issue.
prop desk is main biz under the table !
yield doesn't come from heaven unless u are #derivative #gambling or there real economic activity in most countries (3yr lockdown)
Celcius, FTX, & Quadriga got their playbook from the #banksters ✨. #[0]
Too many people don’t understand this. Even my wife was like “what’s wrong with the govt bailing the people out? It’s not the banks getting bailed out.” While the statement is true on the surface, it signals to other banks that they can be risky to earn yield and the govt will backstop them if they are wrong. That’s the worst kind of risk taking: the house money approach.
Just listened to her great interview with Peter.
If they don't take risks inflation will kill the purchasing power of the dollars they store.