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I think this summarizes the entire situation of the past 24 hours after China has banned its citizens from foreign crypto exchanges http://archive.is/2018.01.1

• narrator 9y ago
  Every bubble has money coming from somewhere. The mortgage bubble had all the BBB- derivatives that were ridiculously underpriced turning trash into treasure. Bitcoin is all about money trying to get out of China. There is a bit of people in countries with trashy currencies trying to save, some illegal commerce and some greater fool speculation on top of that, but that's not a lot of money comparitively. As China squeezes the vice, it's going to slowly suck most of the air out of the market.
  • rlucas 9y ago
    Why do you think the mortgage derivatives were broadly speaking underpriced? There are a lot of kinds of risks you can buy that exhibit "picking up dimes in front of a steamroller" risk, and are priced fairly. That is, 99% of the time you get a free dime...
    • narrator 9y ago
      Seems AIG was the designated bagholder and lynchpin of the whole thing. Many derivative buyers got 100 cents on the dollar on all their derivatives they bought from them because the government picked up the obligations.