Crypto Two

[NoTrespassing]

MSN

Bitcoin’s last stand

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

www.ecb.europa.eu

Can anyone speak to this?

 

[Oaktree]

Or for that matter find any asset class or company that has only been able to exist on low interest loans that are all but dried up these days or from over speculation caused by the fear of missing out. Such targets deserve to be shorted because they are over-leveraged, unaware of what their leverage exposure is, or no plausible reason can be found why the asset's price will continue to increase over the next 24 months. Back in the Great Recession the shorting plan worked like this:

1) Find an institution that is in trouble or so convoluted that it doesn't know what assets it owns.
2) Take a heavy short position with CDSs.
3) Short the common stock.
4) Watch the credit rating downgrade wipe out liquidity effectively freezing the company.
5) And the treasury to step in and wipeout shareholder value.
6) Reap hordes of money covering cheaply.
7) Reap more money collecting money on the wiped out CDS.
8) Find a new target of opportunity like the idiot who sold you the CDS, like AIG or something.
9) Rinse and repeat all the while knowing that no bulls will stand in your way because they lack the confidence to do so.
10) Welcome to one of the greatest short-side momentum markets ever known.

Maybe I'm just dense, but I didn't understand a word you posted. Guess I'm not cut out for playing that game, think I'll stick with dividend stocks with solid companies.

 

[NoTrespassing]

Maybe I'm just dense, but I didn't understand a word you posted. Guess I'm not cut out for playing that game, think I'll stick with dividend stocks with solid companies.

I have a coworker that shorted Apple years ago, I'm thinking it was 2013. He lost his a$$ and has never shorted a stock since.

 

[Snobdds]

MSN

Bitcoin’s last stand

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

www.ecb.europa.eu

Can anyone speak to this?

Once you understand that central banks don't like this as it makes their monetary policies less effective, one understands why governments don't want this. Why do you think China banned it. It was something that was viewed as a huge threat and must be extinguished quickly before it spreads.

Because government's can't control it, is exactly why it's needed.

 

[NoTrespassing]

Once you understand that central banks don't like this as it makes their monetary policies less effective, one understands why governments don't want this. Why do you think China banned it. It was something that was viewed as a huge threat and must be extinguished quickly before it spreads.

Because government's can't control it, is exactly why it's needed.

That's all well and good but the question remains, will crypto currencies survive or is this, as the article puts it "Bitcoin's last stand"?

 

[Snobdds]

That's all well and good but the question remains, will crypto currencies survive or is this, as the article puts it "Bitcoin's last stand"?

You should know my position.

Crypto will die and it should.
Bitcoin will live on and thrive.

 

[NoTrespassing]

Sorry, I don't commit a person's position to memory and the previous thread is not available to reference. Also, positions sometimes adjust as new information becomes available, at least they should imho.

 

[Oaktree]

Crypto will die and it should.
Bitcoin will live on and thrive.

I thought bitcoin was a cryptocurrency. Man, this stuff is confusing!

 

[Snobdds]

I thought bitcoin was a cryptocurrency. Man, this stuff is confusing!

It's too bad the last thread was nuked...it explained the differences quite well.

I will not be going into it again, just to have this thread nuked as well.

 

[MinnesotaEric]

Maybe I'm just dense, but I didn't understand a word you posted. Guess I'm not cut out for playing that game, think I'll stick with dividend stocks with solid companies.

I tend to buy a lot of mortgage-backed real estate investment trusts (mREIT), and back in March of 2020, when the market briefly tanked I got stop-lossed out of just about every position I had in the mREIT sector. I was looking at the charts thinking some hedge fund that invested in the mREIT sector was blowing up and forced to sell at whatever price to make margin calls, no matter how low the prices went. It turned out that AG Mortgage Investment Trust (ticker MITT), a company I had owned but got stopped out from was blowing up, but I didn't know that at the time and the whole sector, a sector I'm familiar with was on fire sale. So I looked at the charts, and saw MITT was trading for dimes on the dollar and bought with both hands. My discipline is that if something doubles, I take out at least what I put in and let the rest buck until it doubles again, wherein a take out another half as profits. Anyway, MITT sawed up and down for a good week before the street knew MITT was on the ropes. As it was because the underlying was a bunch of insured mortgages, MITT secured a new line of credit and survived having taken a huge ding in their asset values, but not before I swooped in and bought MITT preferred that after the dust cleared eventually settled in with a 170% gain and are still paying me 21% annual interest based on my original cost basis.

My experience is Mr Market goes batty about twice a year if you watch the markets daily.