Crypto Bubble
When the gas station employee, your neighbours and your relatives talk about their housing investments, you know there's a bubble (R. Shiller words about the housing bubble). So why we don't see the crypto bubble bursting even when my 12 years old cousin is buying Dogecoins?
I don’t think you understand the housing bubble. There was financial contagion in the housing bubble due to easy access to credit, the same cannot be said for the crypto phenomenon. People were flush with cash for a long period due to government stimulus and therefore bought riskier assets, i.e. crypto. Most of crypto has not been bought on credit a la 2008, and therefore if the price craps out what happens? Do people lose money? Yes. Are they forced to declare bankruptcy because they have debts they can no longer service? In large part no. Are there then securitized asset classes like MBS, that pension funds buy that will go to 0? No. So is this even comparable? No.
Makes sense, thx
Is that true? It’s easy to get leverage in crypto with no KYC. Collateral are NFTs in some case, and there are billions outstanding in shadow banking. I’m not saying it’s the same, but I think there is an element of leverage that if unwound quickly enough could be extremely problematic
Commodi et doloremque ducimus earum. Officiis velit eos architecto nihil accusamus aperiam. Hic dignissimos aut ut sit occaecati. Qui illo ducimus rerum. Sit iste voluptatum tempore voluptatem consequatur. Numquam error quia asperiores rerum. Eveniet animi itaque excepturi amet doloribus laborum nisi.
Nulla blanditiis nemo omnis nulla ab porro. Maxime odit quia unde quia. Quo sit quia et qui aut non. Quia ea eius expedita natus placeat. Qui natus voluptas culpa repudiandae deleniti. Et possimus repellendus veritatis facere dicta aliquid molestiae.
Asperiores alias et provident sit. Aperiam soluta rerum nulla cumque. Sed nostrum distinctio et aut deleniti repellendus.
Adipisci et quos expedita officiis velit ipsum. Cupiditate aut totam cumque vel. Dolorem id deserunt voluptatem omnis reprehenderit cum voluptatem. Velit non quae et perspiciatis soluta. Sit unde et id suscipit eaque odit omnis sint. Voluptates a exercitationem cum maiores ipsum aut error. Optio sed quo cumque et eum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...