Cryptonauts we love you!!

The FT continues the cold shoulder for print crypto.  It's as if they are SCARED or something!! 

Online, we get one article but it is a heavyweight.  "Unhedged" does a deep dive on Balaji's million dollar bet on BTC hitting a million. TLDR: look, it's a .... umm... neutral subliminal on BTC?? An oddly colored BTC is rising slightly  against a sea of red?? 

The FT breaks down Balaji's thesis on Twitter - erm Dodger - 

The FT gives their spin - erm summary as follows TLDR: we blithely summarized the fall of SVB as this:  SVB believed the gummint when they said "no inflation."  So SVB bought a effton of longterm debt to increase returns just enough to get their bonuses.   Then, they failed to hedge against the risk, because the bank & gummint was asleep at the wheel and the San Fran Fed was out to lunch worrying about sexual preferences. 

Balaji's story adds a GREAT bit of color, namely that SVB lied their ass off and hid the long term debt in the balance sheet as an undisclosed footnote!!  But REALLY funny, since they called the long term debt as HTM, hold to maturity, by accounting LAW they were no longer ABLE to hedge out the risk!!!   Hmm, maybe, just maybe they should have had a risk manager not focused on safe spaces!!! 

The FT picks out the following quotes

We picked out the same two TLDR: though Balaji added some schweet infoporn: 

So, thanks FT for breaking Balaji down for us.  Though of course the FT disagrees with Balaji's conclusion

OK, instead the FT states that all that happens is whenever the Fed injects liquidity, everyone moves to risker assets. TLDR: so BTC's rise is just a function of the almighty Fed slopping liquidity around.  

We dunno about that statement.  Gold is a risky asset?  We think that the Fed is always doing everything they can to keep BTC down.  Agitprop against Binance, Wells notices,  not allowing a spot futures market, etc etc etc, and (someday we will know) market ops thru the CME.  So BTC going up at all, ever, is a global triumph against the fiat kings.  On whose side the FT firmly resides!!

OK team, we are all caught up.  Sorry we could not find a way to make that much funnier.  Well, calling gold a risk on asset is kinda funny!!  And  the accounting tricks SVB used to hide their giant mistake were funny, and the idea that since they hid it as HTM hold to maturity they could NO LONGER LEGALLY  hedge it flat is HILARIOUS AH HA HA HA HA HA !!!

Peace out, we love ya, thanks for the three new followers, you know who you are!!

Love

Dave

@davidsawyer we will follow you! 

Please please refer a pal!