Here’s my personal redux on the carnage in the Banking sector Thur/Fri for anyone wondering:
- Banks are sitting on a LOT of low-yielding bonds & treasuries which currently trade at huge unrealized losses unless held to maturity.
- These losses aren’t a problem UNLESS they’re forced to sell these assets to cover deposit withdrawals. Fears of a bank-run didn’t substantially exist Thursday morning…but became very real by Friday afternoon w/ the Silicon Valley Bank news.
- With regard to SVB specifically, there is significant damage about to occur to the Tech Sector, and here’s a great quote from Wall Street Journal on Friday that sums it up:
“Garry Tan, president of the startup incubator Y Combinator, posted this internal message to founders in the program: “We have no specific knowledge of what’s happening at SVB. But anytime you hear problems of solvency in any bank, and it can be deemed credible, you should take it seriously and prioritize the interests of your startup by not exposing yourself to more than $250K of exposure there. As always, your startup dies when you run out of money for whatever reason.””
- Lastly, stablecoins like USDC & DAI that suffered collateral loss via SVB will likely try to simply borrow to shore up their reserves, which is difficult enough…but will meet overwhelming resistance, imo, with every uptick as holders are incentivized to cut their losses asap. Nobody claims ‘diamond hands’ for a utility coin.
Hope this helps!
Here’s my personal redux on the carnage in the Banking sector Thur/Fri for anyone wondering:
- Banks are sitting on a LOT of low-yielding bonds & treasuries which currently trade at huge unrealized losses unless held to maturity.
- These losses aren’t a problem UNLESS they’re forced to sell these assets to cover deposit withdrawals. Fears of a bank-run didn’t substantially exist Thursday morning…but became very real by Friday afternoon w/ the Silicon Valley Bank news.
- With regard to SVB specifically, there is significant damage about to occur to the Tech Sector, and here’s a great quote from Wall Street Journal on Friday that sums it up:
“Garry Tan, president of the startup incubator Y Combinator, posted this internal message to founders in the program: “We have no specific knowledge of what’s happening at SVB. But anytime you hear problems of solvency in any bank, and it can be deemed credible, you should take it seriously and prioritize the interests of your startup by not exposing yourself to more than $250K of exposure there. As always, your startup dies when you run out of money for whatever reason.””
- Lastly, stablecoins like USDC & DAI that suffered collateral loss via SVB will likely try to simply borrow to shore up their reserves, which is difficult enough…but will meet overwhelming resistance, imo, with every uptick as holders are incentivized to cut their losses asap. Nobody claims ‘diamond hands’ for a utility coin.
Hope this helps!
Here’s my personal redux on the carnage in the Banking sector Thur/Fri for anyone wondering:
- Banks are sitting on a LOT of low-yielding bonds & treasuries which currently trade at huge unrealized losses unless held to maturity.
- These losses aren’t a problem UNLESS they’re forced to sell these assets to cover deposit withdrawals. Fears of a bank-run didn’t substantially exist Thursday morning…but became very real by Friday afternoon w/ the Silicon Valley Bank news.
- With regard to SVB specifically, there is significant damage about to occur to the Tech Sector, and here’s a great quote from Wall Street Journal on Friday that sums it up:
“Garry Tan, president of the startup incubator Y Combinator, posted this internal message to founders in the program: “We have no specific knowledge of what’s happening at SVB. But anytime you hear problems of solvency in any bank, and it can be deemed credible, you should take it seriously and prioritize the interests of your startup by not exposing yourself to more than $250K of exposure there. As always, your startup dies when you run out of money for whatever reason.””
- Lastly, stablecoins like USDC & DAI that suffered collateral loss via SVB will likely try to simply borrow to shore up their reserves, which is difficult enough…but will meet overwhelming resistance, imo, with every uptick as holders are incentivized to cut their losses asap. Nobody claims ‘diamond hands’ for a utility coin.
Hope this helps!
I’m wondering this myself, tbh.
Maybe I’d add:
Step 2.5: Big 4 banks buy-up best assets at fire-sale prices.
I’ve always assumed the dual mandate was:
1. Steal people’s labor at a rate they won’t notice.
2. Keep enough people unemployed that it’s a buyer’s market for labor.
Six of one, half-dozen and all that….
Sweet…
My parents always swore “if you have the same number of kids at the end of the day as you had at the beginning, it’s a win”.
Different era.
Great point.
Wall Street is comfortable believing they are the ‘smart money’, because they’ve benefitted from the fiat system for so long.
In Bitcoin, they are revealed to be the dumb money.
On the brighter side…great convo on BTCSession just now about how Nostr effortlessly sweeps people into a vibrant, circular, non-kyc economy that is the central planners’ worst nightmare!
Assuming you’re talking Artist stuff…I totally appreciate what you’re offering @tip_nz.
I’d throw into the convo as well: if you’re blocked, it’s likely b/c you’ve lost interest, and that’s ok. Walk away, figure out what WOULD interest you, and make that your next aim.
Spot-on jimmysong!
Bitcoin is a human innovation.
Our ego is not.
Leveraging Bitcoin to build my ‘profile’ is understandable, but cringe.
Bitcoin is not ‘my thing’.
Bitcoin is the reason I don’t care to fiat myself anymore.
I don’t know that it’s because of Bitcoin…but I’m ridiculously confident the current tight monetary policy is solely designed to create destruction worldwide in order to support the US Dollar, and Bitcoin is part and parcel of this.
I lived through the Fed doing this in Feb/Mar 2000. They pulled MASSIVE liquidity out of the system rapidly & for little reason…but everyone knew (& it was openly admitted) that it was specifically to kill the equity-driven Internet revolution that was undermining old-guard media, retail (and peripherally) banking.
Think on this: America Online (which had been in business for 7 or 8 years at most) had recently bought Time-Warner.
This was, imo, the shot across the bow, that old people with money (i.e. controlling the ‘system’ via media) were sweating the young barbarians at the gate.
The Fed knew these young co’s were fueled by late-90’s easy money. They chose to kill this technological onslaught, and hung average Americans out to dry to do it. The result was that, after the massacre, ‘Old Money’ was able to swoop-in and take over the Internet ‘revolution’. Time-Warner divorced from AOL, and the Internet revolution was undermined and almost completely co-opted.
As an old school punk-turned-investment pro…I was on the ‘outside and the inside’ enough to see what was happening, and I know what I saw.
Fuck shitcoiners, they’re children. The cypherpunks made Bitcoin happen because they knew what it took for the System needed to be undermined.
You can’t understand Bitcoin w/o understanding Cypherpunk.
You can’t understand Cypherpunk w/o understanding Punk.
Punk came first.
Punk inspired a generation, and lived on under the radar.
You’re Welcome.
Wow. Really.
Oldest scam in “crypto”.
hfsp
On Damus > Settings…what does “Clear Cache” do?
Because “My Cache” is different from “All The Shit” Cache…
…will it clear DM’s & recent mssgs & things I want to keep?
But…and this is important to answer correctly…is C= prounounced “Sequels”?
You’ll prolly say NOSTER when you post jpegs to the NOSTRA blockchain as well you POS!!!
Also, I mean…yes you’ll do that, & we all will.
Also, not a blockchain, obv.
Also, srsly you’re not a POS I was just fighting, kthxsry.
“I just went upstairs to use the restroom, I come back and the whole family’s fighting!”
Feel you sister.
Also, it was always Nostra, but that will never last. Get ready to throw some coffee mugs…
Because Nostr came from ‘Nostradamus’ (along, obv w/ Damus). So it was pronounced Nostra for about a month until it broke big.
Let’s not allude to how Doge came to be mispronounced Dowdge, but its something to think on.
I’m admittedly very inspired to write a spec script for “The Mandibles” - which absent rights wouldn’t happen w/o consult with the author - but sometimes a draft-script can incentive those rights.
Yet I can’t bring myself to touch it…because the timeline is so close (and story so narrow) that if-and-over the course of production, it’d just lose ‘relevance’ and won’t be…well, ‘relevant and entertaining’ by then.
I know for a fact Artists have never thought this way.