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Feature Article by Paul Rosenberg
Bitcoin works exceptionally well as collateral; far better than anything else I can think of. And I have a feeling that's about to matter.
The fact is that collateral has been tremendously abused in the financial systems of the West. Most people ignore this, of course, including professionals who should know better. They've been relying upon the Fed Put, which is the implied guarantee that the Fed will never allow the S&P to drop very far… that if it starts to collapse, they'll flood the markets with liquidity, push their associates to buy, or will simply buy shares themselves in "market operations."
With ever-rising prices, questions about collateral rarely come into play. As a result, some really bizarre games are being played with it.
The Present State of Collateral
Only those who work in the guts of the financial system have a real handle on the state of collateral, but it is clearly a train wreck. I say that for several reasons, but
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