lowkey

20 ms·

181.
by lowkey 4y ago
I fully agree with you on all points. I’ve been thinking about your last point about where would the money go. Even if it was used to buy Bitcoin, for example, the money wouldn’t actually ‘leave’ the system. I do find this confusing in a wa
182.
by lowkey 4y ago
If you were caught holding $1 million in investor funds designated to pay your employees salaries for the next X months and you learned there was a real risk of your bank failing. Knowing that only $250k of those funds were FDIC insured, wo
183.
by lowkey 4y ago
> That means that the bank might not be able to pay out all the money they owe if a large percentage of the depositors all at once request their deposits returned. It isn’t that large a percentage of deposits - less than 20% for most ban
184.
New Fed Bank Backstop Has Scope to Inject as Much as $2T(bloomberg.com)
2 points by lowkey 4y ago|2 comments
185.
by lowkey 4y ago
https://m.youtube.com/watch?v=0-Lvv1f5Qu4
186.
by lowkey 4y ago
The “evidence” it claims to debunk the JFK Assassination link is extremely weak.
187.
by lowkey 4y ago
I agree that they have not lowered rates. However as the chart shows they did dramatically increase the Fed’s balance sheet in the past two weeks. They did this in order to facilitate loans to banks who have underwater assets on a mark to m
188.
by lowkey 4y ago
I disagree with your numbers. Based on current bank reserves, if ~20% of a banks deposits were to be withdrawn the bank would be insolvent. You don't need to withdraw 100% of deposits to have a run on the bank.
189.
by lowkey 4y ago
You put more faith in the Fed than I do. As I see it, the Fed caused this crisis with a decade of loose money policy. Then they told us there would be no inflation. Then inflation was transitory. Then they were serious about fighting inflat
190.
by lowkey 4y ago
It wouldn’t need to be the entire depositor base. If only 2% of banks by deposits were to fail then FDIC would itself be bankrupt and require a bailout.
191.
by lowkey 4y ago
FDIC holds $128 Billion that aims to protect ~$17 Trillion in depositor funds. With a 0.75% coverage ratio I do worry what happens in the case of more bank failures. The only question is will the bag holders be the US taxpayer or all dollar
192.
by lowkey 4y ago
Agree with your assessment of technological innovation lowering cost over time. Disagree that all goods and services behave the same way. As counter-examples look at the HHH of higher than inflation industries: healthcare, higher education
193.
by lowkey 4y ago
Check you timelines. Per Investopedia the petrodollar system was established in the mid-1970’s [0] Per Wikipedia, the Vietnam war lasted from 1951-1975 and Laos from 1959-1975 [1] In any case the argument wasn’t that the US only invades cou
194.
by lowkey 4y ago
When was the last time the US invaded a country in false pretenses for trading corn in another currency? The US claimed to invade Iraq because they were holding WMD. US led NATO forces claimed to liberate Libya because, checks notes, they w
195.
by lowkey 4y ago
All fair points.
196.
by lowkey 4y ago
I would argue that a reliable store of value is one that preserves its purchasing power over time.
197.
by lowkey 4y ago
I just tried this approach, using Metromile, as both my wife and I work from home and rarely drive. Pay-per-mile IS cheaper if you only need liability insurance, but if you want collision and comprehensive, it actually works out to almost t
198.
by lowkey 4y ago
I wasn't referring to old people. I was referring to working age people who attempt to save for their own retirement. But to your point, why do you advocate for preventing a retiree, the proverbial widows and grandmas, from having acce
199.
by lowkey 4y ago
Currently things are set up so that the working class have no viable options for storing the purchasing power of their labor for future expenditures. This makes it virtually impossible for average folks to save for retirement without specul
200.
by lowkey 4y ago
Another issue is that the FDIC insurance fund currently holds $148 Billion to protect over $17 Trillion in deposits. Where does the money come from if 0.8% insurance coverage ratio is insufficient in the event of a crisis? More money printi
201.
by lowkey 4y ago
I am concerned that a CBDC is actually the end goal of the government and the FED and the WEF. What if these crisis were designed to move us towards a CBDC all along? "You will own nothing and you will be happy" - the Word Economi
202.
by lowkey 4y ago
“Chancellor on brink of second bailout of the banks” - Financial Times, encoded in the Bitcoin genesis block “The problem with money is all the trust that is involved” - Bitcoin Whitepaper We can debate whether or not Bitcoin has truly solv
203.
by lowkey 4y ago
That is correct. Gary Gensler, head of the SEC, had publicly stated that he considers Bitcoin a commodity, not a security.
204.
by lowkey 4y ago
Famously, the US banned alcohol and drugs and some states even banned homosexuality. In none of those cases did it work out as intended. The only meaningful outcome was the destruction of individual liberties. Hmm, maybe that was the real g
205.
by lowkey 4y ago
The OP’s original comment referred to the rest of the world, which I read as those outside the US. My understanding is that Visa and Mastercard are American companies with footprints outside the US yes, but they are still US companies.
206.
by lowkey 4y ago
My understanding is that Bitcoin went up due to concerns over the health of the banking system. The issues with Coinbase, Do Kwon and Lyndsay Lohan have more to do with other cryptocurrencies being considered securities. Even Gary Gensler r
207.
by lowkey 4y ago
Fair point, but a single anecdote doesn’t equal the general case. Texas is home to more Bitcoin miners than any other state. Up thread, I shared a detailed example from the Guardian explaining how the power purchase agreements between miner
208.
by lowkey 4y ago
Here is an example from the Guardian explaining how the contracts are designed between Bitcoin mining companies and Texas power companies. It describes exactly the scenario I described where miners negotiate long-term contracts at low elect
209.
by lowkey 4y ago
If the goal is to accelerate the transition away from fossil fuels and toward a clean energy future based on renewable energy, then Bitcoin mining helps us get there faster. This is due to its unique property to act as a buyer of last resor
210.
by lowkey 4y ago
I would be all for innovating new grid scale energy storage technologies. Until we have those, Bitcoin mining results in more renewable energy investment, not less. In the meantime are you arguing we should ban Bitcoin mining and eliminate

More ›