Krugman drops off a quick note that it looks like the Crypto Crash may be upon us. Bitcoin, the Cadillac of Crypto, has dropped from a high of about 125,000 a month ago to about 91,000 today. Ethereum peaked at around 4800 in August and is around 3000 today, three weeks ago is was around 3800.
David Frum points to the real peril that stable coins might pose to our broader financial institutions. The speculative frenzy surrounding some cryptos - to say nothing of the incoherent madness of meme coins - was supposed to be tempered by the stable coins. Because stable coins are redeemable in real currency, this could lead to runs on financial institutions.
Part of me is regretting not putting my money where my mind mouth is and shorting crypto. Part of me wants to jump in now and make some bucks off the venality of others. There is, however, a risk when you bet against a fraudulent system.
We are building a house for retirement, so we have a lot of cash on hand which should be safe in a crash. We are also near that retirement and a crash...won't be great! I suppose to bright side is that Trump has bound himself to crypto in such a way that when the crash comes and if it truly devastates the economy, that will combine with Epstein to drive the nails into the coffin of his authoritarian plans.
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