And so, legions of retail investors, hordes of previously cock-sure newly-minted “money managers”, and scores of popular pundits who swore to you they knew what they were talking about, are left to ponder the stark reality of a market structure-driven nightmare scenario.
“Come play with us Danny”…
Remember “knifed at a bus stop”?Â
And there you go. Another way for cryptocurrencies to morph into a systemic risk…
That’s some rough shit right there, and it underscores just how dire the situation had become when the bank embarked on an effort to turn things around after an abysmal Q2 performance.Â
“Come and play with us, Danny”…
Spoiler alert…
“The market can’t go down until the bond market gets hit.”
Let me tell you something you should maybe watch for in 2018.
Here’s a chart that shows you the history of Bitcoin crashes…
So is this the end? Have we seen “peak crypto”?Â
The reason we bring this up on Sunday is actually to draw your attention to another fun “longest since” moment.
“The major opposing forces in 2018 will be contracting global liquidity vs synchronized global growth. Our view is that the former will be the bigger force, and will drive asset returns in 2018.”
It’s like Bigfoot. Or Nessie.
“If we let things continue, I feel some serious pathological phenomenons could occur.”
Obviously, nothing could go wrong here.
“The risk is that the market is hugely vulnerable if it hears a distant bark, let alone feels its bite.”
Submitted for your approval…
In yet another truly absurd leg higher…
“It could happen tomorrow given the extreme expense of US equities and the near universal consensus of a continued acceleration in the economic cycle despite the Fed also in the midst of a tightening cycle.”
When the proverbial shit hits the fan, don’t blame risk parity and the trend followers. Rather, point the finger at the Target manager next door.
“For context, Bitcoin’s collapse in value in early September was worse than the collapse in the value of the German mark at the start of the Weimar hyperinflation.”
Well unless cross-asset volatility picks up in a hurry, it looks like the irony for JPMorgan is that they might want to consider following Goldman over to the crypto “dark side”…
“With VIX futures several points below their historical average, a several point move would not be a tail scenario.”
“Still thinking about #Bitcoin.”
“So is a single Bitcoin worth $500,000, $5,000, $500 or $0? I’m inclined to say $0, especially if Bitcoin’s value depends on it being adopted as a global digital currency to replace dollars. There is no chance whatsoever that Bitcoin can displace the dollar, for the simple reason that it is badly designed.”
If the crypto crowd wasn’t already incensed enough after a week that saw Bitcoin collapse as much as 30% on signs that China is deadly serious about Beijing’s ongoing shakedown in the space and after Jamie Dimon delivered a truly scathing critique of what he’s calling a “fraud” that’s destined to “blow up,” they can now add the B.I.S. to their list of adversaries.
You must be logged in to post a comment.