Not All Crypto Critics Are Off Limits
There are certain crypto critics who, out of respect, I won’t go near. Obviously, Warren Buffett & Charlie Munger are off limits. Jamie Dimon and Ray Dalio and BlackRock’s Larry Fink. I think these folks have kind of earned “full genuflect” status – at least to me they have. But even I have my limits. And sometimes I simply cannot resist. The European Central Bank comes to mind. Ardo Hansson, governor of the Bank of Estonia and member of the ECB governing council had this to say: “The bubble has already started to collapse and maybe we should just see how far this collapse goes.” He added: “I think we will come back a few years from now and say how could we ever have gotten into a situation where we believed this kind of fairytale story.” You wonder if Mr. Hansson is talking about the European housing market, the European banking industry, the European bond market, or all of the above. Wait, he’s talking about cryptos – never mind. 11 years after Lehman Brothers, the yield on the German two-year is still negative sixty basis points. What that means is European banks pay you to take a loan from them. And if you deposit your money with them, they take a haircut. The European economy is – pardon my French, as my Dad used to say – screwed. Pontification from the ECB? A bit much.