HISTORY:
Alan Greenspan said the United States could never default on its debt.
Why?
"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default."
JUST IN: Total household debt jumped by $351 billion last quarter, the largest quarterly increase since 2007.
This puts total household debt at a record $16.5 trillion.
Mortgage balances are up a record $1 trillion this year and credit card debt is up 15%.
What could go wrong?
What caught Bankman-Fried?
Not SEC or CFTC.
It was cryptography.
Self-custody.
People withdrawing cryptocurrency.
Because he could capture regulations.
Legally bribe politicians with donations.
And fake app balances via centralization.
But couldn’t beat Bitcoin’s verification.
1/ Why would FTX acquire Voyager and BlockFi if they had no cash and were insolvent?
What were they thinking?
It’s truly Machiavellian. Here’s a thread on my hypothesis…
1/ Always forward, never backward
Most people are wildly overconfident about how much they can predict their life path, particularly on alternative timelines.
Your alternate fantasy lives are not a Real Thing, you should not waste time on them.
Post Civil War (1870-1900) era in American business is crazy.
- stock market was new. Some printed extra shares in basements, sell them for millions
- no regulation. Ex) insider trading was legal.
- trader groups regularly drove up stock then sold
Reminds me of crypto today
Navy SEALs have a saying:
"Task saturated"
It's when you're overwhelmed by numerous problems happening at once.
The fix:
• Prioritize the problems
• Execute one w/ 100% focus
• Move onto the next
Trying to do everything is how to do nothing.
Prioritize and execute.