VinnieChase

Father | Husband | Entrepreneur | Investor | Thinker | Writer

[VinnieChase @Vchase_13]

For everyone who still thinks loans create deposits...

Therefore, in the modern era of digital payments, there is no reason for money creation to be entangled with the facilitation of payments.

[VinnieChase @Vchase_13]

No one in Silicon Valley referenced “FDIC” or “Regional Bank Contagion” prior to this past Friday.

A Treasurer knows how to manage cash accounts. The only reason depositors would retain such uninsured exposure is if SVB served as a country club type atmosphere for the VCs.

[VinnieChase @Vchase_13]

The Fed shapes big tech culture more than management.

[VinnieChase @Vchase_13]

@Lambooner88 Additionally, the loans that create deposits have to be repatriated to the banking system with current deposits or fresh loans. Therefore, even if we pulled deposits out of the banking system, we'd put it right back in as we pay interest + principal on outstanding loans.

[VinnieChase @Vchase_13]

Banks are nothing like any crypto currency exchange platform or DeFi app. Banks do not lend your deposits to anyone. In fact, banks never lend deposits. Deposits do not create loans. Loans create deposits. This is where almost all money comes from.

[VinnieChase @Vchase_13]

@Lambooner88 That is incorrect. Banks have access to the fed's discount window + excess reserves, and can turn assets into liquidity at a moment's notice. The situation you describe is pre-fed. There are currently $17.67B domestic deposits. Where come from if not loans? Deposits = keystrokes.

[VinnieChase @Vchase_13]

@FuegoApps @0xfoobar Now the bank has $200 in assets and $200 in liabilities. By definition, it can't loan a deposit. The balance sheet wouldn't balance.

[VinnieChase @Vchase_13]

@FuegoApps @0xfoobar Banks don't lend anything; they create money. Consider this: Bank has a $100 loan as an asset and $100 liability in the form of a deposit. A customer wants a $100 mortgage. As long as the equity meets regulations, a separate loan is made creating the deposit.

[VinnieChase @Vchase_13]

@FuegoApps @0xfoobar Banks don’t lend deposits. They lend against equity per capital requirements. Loans create deposits, not the other way around.

[VinnieChase @Vchase_13]

Seeing crypto proselytizers advocating for regulation is like big tobacco asking the FDA for cigarette warning labels.

[VinnieChase @Vchase_13]

How is FTT anything other than $0?

[VinnieChase @Vchase_13]

The reason crypto will struggle to come back from this cycle: It matured to be its own insular financial system exposed to the classic cycle of bank runs with no backstop. Crypto, in its unregulated manifestation, will never not be exposed to forced liquidations.

[VinnieChase @Vchase_13]

@renegademasterr Think this has a higher probability of aging well than not. NFTs too highly correlated to crypto, and the chance of a “bank run” liquidity squeeze triggered by massive de-levering, failing tokens is anything but insignificant. No backstop to inject liquidity.

[VinnieChase @Vchase_13]

#NewProfilePic #koda @OthersideMeta

[VinnieChase @Vchase_13]

@Zeneca_33 One thing missing: Money "invested" into NFTs should only be money one can easily afford to lose. The emotion is due to too many people being overly exposed to NFTs/Crypto thinking it's their path to wealth and happiness, and it isn't. It should be a laugh, not a cry.

[VinnieChase @Vchase_13]

@nftbutton @XCOPYART 👊

[VinnieChase @Vchase_13]

@lior_eth @yugalabs

[VinnieChase @Vchase_13]

@booknamedotcom @BoredApeYC 🔥🔥

[VinnieChase @Vchase_13]

gm Mutant Monday! @BoredApeYC