25th March 2023 - Banks.

tl;dr

The stresses and strains in the banking sector, allied with possibly the greatest ramp-up in government support ever contemplated, can only be positive for crypto prices.

Market Snap

Market Wrap

Leveraged shorts are over-extended again, probably because of the greater press coverage being given to Operation Choke Point 2.0. There are plenty of tales of US crypto investors whose daily limits on transferring fiat to an exchange are being reduced by their banks. I don’t know about you, but the concept that a bank can make decisions for me as to how I spend my own cash is scary, dystopian, and just plain wrong.

Occasional Series – How lockdown let down our kids (Part 1)

Autumn term 2019, the last before the first lockdown, 60,000 pupils in the UK were classified as “severely absent”. That terminology means spending more time out of the classroom than in it.

Now 140,000 children are classified as “severely absent”.

Lockdown supporters (remember, you were the shouty ones back in 2020 so do not do us the disservice of hiding away now) – please take note.

Curious Cryptos’ Commentary – Deutsche Bank is the next for the chopping block

Now that the Credit Suisse problem has been “solved” (spoiler alert – it hasn’t, but the next chapter is months or even years away) all eyes are on Deutsche Bank.

One suspects that its capital reserves are stuffed full of long-dated Bunds (German government bonds) which - as we are told - are entirely risk-free. Which is an odd claim to make as they have lost 25% of their value in a little over 12 months.

Anyone who bought BTC before February 2021, or after April 2022, is quids in compared to Bunds. And you tell me cryptos are risky?

That’s what happens when you have poorly designed regulation tailored to suit regulators and governments, not society at large.

Curious Cryptos’ Commentary – Treasury Secretary, Janet Yellen

“JUST IN: Treasury Secretary Yellen says US prepared to take action on deposits “if warranted.”

Yesterday, Yellen said they were no longer considering backing all deposits.

2 days ago, Yellen said they were considering backing all deposits. This is not how you reduce panic.”

The Kobeissi Letter, Twitter

Guaranteeing all bank deposits in the US would amount to $17 TRILLION. Why might that be needed? Look here:

Anyone with cash greater than the insured amount ($250,000 USD for US banks, or £85,000 for UK banks, or EUR 100,000 for European banks) needs to do one, or both, of the following things immediately:

i) Spread the cash around several banks without exceeding those limits above at any one of those banks.

ii) Buy short-term money market instruments with segregated custody.

Once your cash stash is secured, get back to the real business of the day, and stick to your crypto investing plan.