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The Crypto Times 0021 - The Bank Run

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No. 0021 March 14, 2023 : The twenty first issue of The Crypto Times and it's a Run on the (Regional) Banks! But please, STAY CALM. We repeat, STAY CALM. You're funds are safe . . . just let us get ours out first. Peter Thiel is a grade A piece of shit. When it comes to money, there is zero loyalty. This didn't have to happen like this, but one man's greed is highly infective. We can't really blame it on him, because in the end it is truly the responsibility of the bank to ensure it's customer's funds. But damn, he started it when he pulled The Founders Fund money out of Silicon Valley Bank and then encouraged all his VC companies to do the same. Word got out real quick and there was a run on funds in less than 24 hours which resulted in the FDIC taking control of SVB. This is the risk when you play fast and loose with your customers funds. Let's back up, SVB kept a small chunk of customers deposits in cash and then redeployed the rest to purchase long term debt like T-Bonds. As long as interest rates stay low, this works out. But if you've been paying attention Jerome Powell and the Fed don't want low rates. SVB fell victim to having a concentration of customers in the same industry. Not smart, Diversify, Diversify, Diversify. Don't keep all your eggs in one basket. They may get smashed. Then over the weekend the FDIC also took control of Signature Bank with fears of systemic risk. And Silvergate Bank failed earlier in the week. Ouch. Banks down hard. The only good news to come out of this bank run is that Bitcoin and Ethereum had a major run up of 25% after losing most of their gains for 2023. Hello Volatility! Strap in, it's gonna be a fun one going forward. Speaking of bad market conditions, Meta announced that they are sunsetting their digital collectibles. Yawn...Was it even live for a month? Much like their metaverse avatars, the Meta NFT's have no legs! Let's wrap this issue up with an off chain rug. Poor Claire Silver's expose with SuperChief Gallery at the Louvre turned out to be a complete fugazi. It made for great marketing though. How did anyone believe the Louvre was interested in hosting "digital art" inside their hallowed walls. She's had a nice run, but don't believe the hype. The Louvre is a whole other level of art. Please contain yourself. Stay in your zone. Vous vous retrouverez avec un œuf sur le visage. well, that's it. Happy PI day 3:14/2023 have a slice for us! . . . 1600 x 1300 pixel png file. created by Nite Owl