This is what I do for a living.
A large driver of the economy has been the fact that money has been free (or near enough not to matter) for nearly 6 years. QE and staggeringly low rates have caused a rabid hunt for yield and once again driven banks/lenders/institutions to push into heavier risk areas like subprime auto, credit cards, and more esoteric products in a much larger way.
I'm not crying wolf, I'm not saying the entire world is going to end tomorrow. We are entering a phase of terrible uncertainty and likely large negative moves in the market. There are huge areas of risk that are not sheltered from market conditions and when money gets more expensive and rates rise, we'll see some extreme situations arise in the market.
Also, it's disingenuous to say student loans aren't a huge looming issue. It's the second largest debt market after mortgages with a climbing default rate and higher per-student debt levels. The boom in for-profit colleges can be attributed to a similar thirst for yield among lenders. These schools get federal loans for lower credit level students who will likely never graduate and even if they do, never see any benefit from the money they've borrowed. You can see the spiral that causes.
The QE house of cards is ready to collapse. Watching it go from down 900 to down 1500 today in the matter of a minute or so was crazy.
a crypto article comment from today - had to post it cause lambo
"we dont do debt in crypto land..eth into fiat and buy the lambo/house cash..no worries, pile in today weak noobs giving their bags away.."
It's worth saying that I truly don't understand anyone actually losing money during this latest crash. You haven't lost anything until you take your money out and I've actually increased my holdings in a number of currencies for absolutely zero dollars. If you assume the market will recover even halfway, which I do, I've created money out of nothing but thin air and others' dumbass decisions.
Obviously some people think it will go lower and are fleeing further losses.
I worry more about further damaging regulatory actions that reduce the number of people able to participate in Cryptocurrency at all, like we just saw in China. Feels like a big downside risk that has nothing to do with the underlying "value" or lack thereof.
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If you had something valued at $100, and at the end of the day it is now $69, then you lost money. Just because you didn't literally have the money in your possession to lose doesn't mean you didn't just lose money.
If you lose 10% of the value on your home, it doesn't mean you didn't lose money because you haven't sold it yet.
But no one cares about value until you need that liquidity. Until you actually cash out your coins you haven't actually lost anything. Maybe in opportunity cost, but even then you should be hodling or day trading, no one should be cashing out at these levels.
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I'm just glad xlm is slowly catching up to cRIPPLE, it stayed at exactly 1/3 for a long time
The money aint yours until you cash out homeboy. The money ain't theirs until you do either.
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Looks like the SEC/CFTC hearing did happen.
https://www.reddit.com/r/CryptoCurre...made_the_most/
Dude friggin' said "Buy and HODL!"
My takeaways are:
ICO's are illegal.
Blockchain is great.
All current crypto platforms are essentially functioning as money-transmission services and the SEC/CFTC aren't OK with it.
Otherwise there's not much here that wasn't already known.
Still of the opinion that cryptocurrency is completely unnecessary and blockchain tech is the only useful part.
All good news as far as the legitimacy and future of any crypto platforms go (even currency-based).
Essentially, they're not planning to ban or get in the way of anything here, but they are going to start nailing down & enforcing regulations to ensure that this space follows the same rules as everyone else. ICO's being the biggest violator. Proper reporting of gains/losses and tax liabilities likely to follow soon after. Etc.Originally Posted by Chris Giancarlo; Chairman of the FTC
This is all a good thing.