All U.S. financial assets—public & private equity, corporate bonds, private equity & debt, government bonds—are worth around $100 trillion. Americans own $1T in crypto. When that bubble bursts it won’t hurt the system, just the speculators—mainly younger men & now one old one. - ThreadSky

kurtandersen.bsky.social • 14 days ago

All U.S. financial assets—public & private equity, corporate bonds, private equity & debt, government bonds—are worth around $100 trillion.

Americans own $1T in crypto. When that bubble bursts it won’t hurt the system, just the speculators—mainly younger men & now one old one.

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rationalpear.bsky.social•14 days ago

i will pose a systemic risk. not a big risk today, but as it become integrated into banking/finance the chance of catastrophic meltdown increases. rules are be changed to allow pension funds to buy. when the crash comes, the uncertainty will cause money markets to freeze up, just like in 2008.

kurtandersen.bsky.social•14 days ago

The trigger of the 2008 financial meltdown,was an esoteric financial device (not unlike crypto) but crucially NOT inextricably welded to tens of trillions of dollars of loans and real estate owned by most people and banks.

rationalpear.bsky.social•14 days ago

but melt down started when wall st realized it had no idea how to value the assets or the extent of the issue. only a few loans failed but panic spread. as crypto infiltrates the markets, the same kind of uncertainty could trigger a panic. despite the neoliberal fantasy, markets aren’t rational

bobneer.com•14 days ago

In 1929 the stock market was similarly unregulated and rife with fraud, self-dealing, and self-interested opacity.

kurtandersen.bsky.social•13 days ago

Sure, but my point: systemic scale of crypto ≠ 1929 stock market and won’t in 2029, not remotely, and despite Trump the Fed and post-1932 regulatory apparatus still exist.

jadedgirl6.bsky.social•13 days ago

Can’t wait!

ihorgowda.bsky.social•14 days ago

With regulatory changes, that bubble bursting could very well hurt the system

kurtandersen.bsky.social•14 days ago

How would it do that?

ihorgowda.bsky.social•14 days ago

https://www.nytimes.com/2025/05/23/opinion/trump-crypto-stablecoin.html?unlocked_article_code=1.JU8.EsqK.ocsy4FoEcEZX&smid=url-share

kurtandersen.bsky.social•14 days ago

If “crypto becomes normalized,” and if the biggest banks acquire lots more than a couple hundred million worth apiece, as they do now. And if the government commits to bailing out crypto investors. Large IFs.

ihorgowda.bsky.social•14 days ago

Medium IFs ;-)

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