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Even in 2008 that is not what happened. Tell me which retail brokerages lost their customers assets because they gambled them away? There is no glossing over
by steveBK123 4y ago
Even in 2008 that is not what happened.
Tell me which retail brokerages lost their customers assets because they gambled them away?
There is no glossing over the fact that all these crypto explosions are a result of largely re-implementing a pre-Fed, pre-FDIC, pre Great Depression style banking system with all its long-patched defects.
- arcticbull 4y ago... except in a way that fundamentally prevents the patches and even lauds the defects.
- steveBK123 4y agoYes, exactly.. this is the end state for crypto rather than a step towards being a normal market that normal people can use
- topranks 4y agoYep. One can argue whether or not the whole point of creating it was to enable such schemes, but they certainly are an inevitable result.
- new2this 4y ago>Tell me which retail brokerages lost their customers assets because they gambled them away? Banks are required to keep a percentage of deposits in risk free assets as part of the Basel Accord[1]. Banks were marking risky assets such as Super Senior tranches of CDO's as risk free when, guess what, they were actually super risky. When the value of those tranches dropped, the banks lost tons of value and all of the sudden couldn't cover their debts because they were gambling with what should have been cash. So to answer your question: all of the banks (who were dealing in CDO's) did this. https://en.wikipedia.org/wiki/Basel_III#US_version_of_the_Basel_Liquidity_Coverage_Ratio_requirements https://en.wikipedia.org/wiki/Basel_III#US_version_of_the_Ba...