Great talk! You covered the thin market going on in equity, but lets cover thin market HY (more specifically reflected by HYG underlying of about ~1250 issues): Today 15 issues had a high/low yield spread of about 30bps or more while 1005 issues had high/low yield spread of 4bps or less. TSLA the first 1 notch above CCC rated company to be added to S&P 500 (along with the highest market cap) says it all…
On Maker MKR; The protocol does not mint DAI stable coins in times of stress. It mints MKR. which means that the borrower is not diluted, but rather the governers (MKR holders) take the hit in MKR value. This is unlike the fiat system where thw central banks pass on the pain to savers and workers, while inflating the wealth of asset holders. The opposite is true for the Maker Dai system. On mandating taxes by the sovereign; This can Easily be done through smart contract. If submission to the smart contract by British subjects, US citizens etc, then those whom obey the law will pay tax in that way. This can by done via another chain like Ethereum, Komodo, EOS, etc or on the Bitcoin chain via RSK rootstock (RIF token).
About normalization of the volatility index at 20+ . Isn’t that natural since the interest rates on bonds are negative ? there is no place anymore where you can park your money and be sure not lose purchasing power right ? Obviously that should be a foundation of a higher volatility presence in the market imho ....
If other governments accept it as a settlement of debt is it money there and not here? Isn't that how something starts to become money. I wouldn't expect a new money to start in the world reserve currency country @Mike
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I think he gets it somewhat, I think a lot of whats going on in crypto (and risk assets in general) is more reflective of a reaction to CBs (with private banks shareholding frbny at the top, thinking that they can provide a backstop forever [have they ever succeed throughout the ages if time old bucket shop polices continued to be enacted, BOJ on like QE 23?]) rather than crypto breaking out into real economies… sure you can write your contract in solidity with a rust client so you make loans in empty set dollars with cpus mining XMR provided by the borrower as collateral for them to build roads in South East Asia, but very little of that is happening now, either via banks or defi participants and mostly churning amongst a sea of HODL in all assets making for very thin markets.
Yeah.... I like this guy. But I do not get though how you can be "skeptical" how bitcoin will be worked into the system... I mean if we're using treasuries and other crap as "money" around the world, how does your brain end up at a place that questions a superior form of collateral (like bitcoin) being adopted as well?
Yeah, if wants to be skeptical of collateral chains, he needs to also look at whats going on with the rehypothecation (haircut rates) of UST in repo with custodians and dealers, why there are at least 5% of institutions buying 10-30y UST at auction at 8bps…
Yes love to here a critical perspective on the Bitcoin bull thesis. However not sure how this can be compared to the subprime bubble. That crashed and never came back since 2008. Bitcoin has crashed so many times and bounces back stonger almost everytime.
Mike is by far one of the most eloquent, entertaining, and clear spoken RV guests. I hit the rewind button at times because I want absorb everything.
Mike Green is so refreshing, so good to hear a financial expert have a curious but neutral stance on crypto.
Neutral?
Thank goodness for the voices of reason. Canadian fan.
Mike is probably my favorite person to listen to on Real Vision. Very thoughtful and insightful.
Great stuff. Mike Green is very good.
33:07 ahahahahaha. Good stuff Mike thank you for taking the time to give us your current thoughts on the market
Cojones is a noun
Mike spitting fire @ 34:40
Great talk! You covered the thin market going on in equity, but lets cover thin market HY (more specifically reflected by HYG underlying of about ~1250 issues): Today 15 issues had a high/low yield spread of about 30bps or more while 1005 issues had high/low yield spread of 4bps or less. TSLA the first 1 notch above CCC rated company to be added to S&P 500 (along with the highest market cap) says it all…
Thank you
On Maker MKR; The protocol does not mint DAI stable coins in times of stress. It mints MKR. which means that the borrower is not diluted, but rather the governers (MKR holders) take the hit in MKR value. This is unlike the fiat system where thw central banks pass on the pain to savers and workers, while inflating the wealth of asset holders. The opposite is true for the Maker Dai system.
On mandating taxes by the sovereign; This can Easily be done through smart contract. If submission to the smart contract by British subjects, US citizens etc, then those whom obey the law will pay tax in that way. This can by done via another chain like Ethereum, Komodo, EOS, etc or on the Bitcoin chain via RSK rootstock (RIF token).
About normalization of the volatility index at 20+ .
Isn’t that natural since the interest rates on bonds are negative ?
there is no place anymore where you can park your money and be sure not lose purchasing power right ?
Obviously that should be a foundation of a higher volatility presence in the market imho ....
If other governments accept it as a settlement of debt is it money there and not here? Isn't that how something starts to become money. I wouldn't expect a new money to start in the world reserve currency country @Mike
Want to stay on top of the news, Real Vision style? We invite you to join our newsletter for our FREE DAILY BRIEFING to keep up with the latest on coronavirus and its global impact on financial markets. You can find an email sign-up through this link here: rvtv.io/EmailAlerts
not my favorite crypto discussion...I don't think he gets it. But I do appreciate seeing who's still a skeptic, they seem to be good meme fodder.
I think he gets it somewhat, I think a lot of whats going on in crypto (and risk assets in general) is more reflective of a reaction to CBs (with private banks shareholding frbny at the top, thinking that they can provide a backstop forever [have they ever succeed throughout the ages if time old bucket shop polices continued to be enacted, BOJ on like QE 23?]) rather than crypto breaking out into real economies… sure you can write your contract in solidity with a rust client so you make loans in empty set dollars with cpus mining XMR provided by the borrower as collateral for them to build roads in South East Asia, but very little of that is happening now, either via banks or defi participants and mostly churning amongst a sea of HODL in all assets making for very thin markets.
you can tell when they've done just enough homework to talk about it but definitely haven't done the entire homework...
Maybe he does get it, and the crypto "believers" do not. Stay tuned.
In defi IT IS KNOWN what happens when you Default on a Loan, you get liquidated since nearly every loan while permission-less is over-collateralized.
Selling out in January so I don't have to pay the capital gains until a lot later.
Bubbles are fragile. The bigger the bubble the bigger the pop. Buy Bitcoin, avoid the ShitCoin and hang on for the wild ride ahead.
Yeah.... I like this guy. But I do not get though how you can be "skeptical" how bitcoin will be worked into the system... I mean if we're using treasuries and other crap as "money" around the world, how does your brain end up at a place that questions a superior form of collateral (like bitcoin) being adopted as well?
Yeah, if wants to be skeptical of collateral chains, he needs to also look at whats going on with the rehypothecation (haircut rates) of UST in repo with custodians and dealers, why there are at least 5% of institutions buying 10-30y UST at auction at 8bps…
Yes love to here a critical perspective on the Bitcoin bull thesis. However not sure how this can be compared to the subprime bubble. That crashed and never came back since 2008. Bitcoin has crashed so many times and
bounces back stonger almost everytime.