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If people only understood how much of a mirror this is to the way normal banks work it would blow their minds. The main difference being that shifts in dollar v

If people only understood how much of a mirror this is to the way normal banks work it would blow their minds. The main difference being that shifts in dollar value while the bank is giving others your money are miniscule so even super large investors pulling out doesn't tank the bank, and if it does, they quietly go with hat in hand to the regional fed. I think FTX was a known issue and was "setup" for lack of better terminology as the Lehman Brothers scapegoat that will be used to justify regulation against crypto, and if they can, towards CBDCs. “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.” -James Madison "The real truth of the matter is,as you and I know, that a financial element in the large centers has owned the government ever since the days of Andrew Jackson…" -Franklin D. Roosevelt (in a letter to Colonel House, dated November 21, 1933)

musk_micropenis 4y ago
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cma 4y ago
Banks disclose that they lend the funds. FTX on non-margin accounts said they were just a custodian and assets were backed one to one.
zopa 4y ago
Banks borrow short and lend long, and that’s both extremely useful and prone to catastrophic failure. So we have insurance for when things go wrong and regulation to ensure that unscrupulous banks don’t abuse the insurance by taking on too much risk. So saying FTX is like a bank is sort of true, but only implies that it needed the same regulation banks need. Oh and also there’s the part where they were lying about treating customers’ money the way honest pre-FDIC banks did, and instead appear to have stolen it.
- arminiusreturns 4y ago
  That's true, and as one of the others said they did claim a 1-1 asset backing which was obviously fraudulent, I was just pointing how similar the legacy system is.
kayamon 4y ago
They don't wanna hear it. Folks just seem to like lending other people's money out for them.

musk_micropenis 4y ago

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cma 4y ago

Banks disclose that they lend the funds. FTX on non-margin accounts said they were just a custodian and assets were backed one to one.

zopa 4y ago

Banks borrow short and lend long, and that’s both extremely useful and prone to catastrophic failure. So we have insurance for when things go wrong and regulation to ensure that unscrupulous banks don’t abuse the insurance by taking on too much risk. So saying FTX is like a bank is sort of true, but only implies that it needed the same regulation banks need. Oh and also there’s the part where they were lying about treating customers’ money the way honest pre-FDIC banks did, and instead appear to have stolen it.

arminiusreturns 4y ago
That's true, and as one of the others said they did claim a 1-1 asset backing which was obviously fraudulent, I was just pointing how similar the legacy system is.

kayamon 4y ago

They don't wanna hear it. Folks just seem to like lending other people's money out for them.