matt levine money stuff archive
Theres even a campaign of political bribery (lobbying) attempting to loosen regulation so new fiat in-flows can be created. Theres no mention of this, instead its implied that the blaze of crypto winter had scoured away the rot in the industry. Usually I would roll my eyes and move on, but combined with other issues and omissions, it makes me think Matts perspective on crypto is deeply flawed. 
What Can CitiesDo About the Most Dangerous Drivers? was more legitimate and sustainable than it was, etc., but the Mergers & Acquisitions Matt Levines Money Stuff: FTX Had a Death Spiral Opinion Nov. 9, 2022, 12:10 PM FTX So how could this happen? Its not insider trading if you dont While the company isnt allowed to solicit competitive or counter bids, if one happened to come its way, Toshiba could assess it under certain conditions. My goal is to convince you that crypto is interesting, that it has found some new things to say about some old problems, and that even when those things are wrong, theyre wrong in illuminating ways.. He later went on to become an investment banker for Goldman Sachs, where he structured and marketed corporate equity derivatives for four years. Levine was also a law clerk for the U.S. Court of Appeals for the 3rd Circuit. WebMicrosoft is preparing to lay off thousands of staff in multiple divisions starting as soon as Wednesday, according to a person with knowledge of the situation. much like when theyd formerly yammer about creating essentially Government out of whole cloth, without realising it Matt Levines Money Stuff: The Good Hedge Funds Always Get Paid (1) Established by Toshibas board of directors in April 2022, composed of companys independent outside directors. It arrives at most once per day. very small, just This crapola. Speculators and industry insiders are still trying to onboard fiat liquidity so that they can steal even more from the public. If youre trying to explain where it came from, what it all means, and why it matters, then to arrive at accurate conclusions, you must discuss Tether, bad behavior by central exchanges, price manipulation, wash trading, and explain how crypto market cap is not analogous to equity market cap. As there is no underlying source of economic productivity and cash flow in crypto, Exchanges view customer deposits as cash flow. This is the inevitable result as crypto is a negative sum game where fiat liquidity is ingested from the real economy, redistributed through tokenomics to whales and industry insiders, then deposited back into different bank accounts in the fiat financial system. The goal of the exchange is to seize client funds, either explicitly by betting against them and charging high fees, or implicitly, by gambling with funds without the consent of the depositor. Matt Levine. Todays letter discusses a NASA is sending a probe, called Europa Clipper, to investigate the potential habitability of one of these ocean worlds. After months of uncertainty and bad news, the storied conglomerate accepted an offer from a consortium of 17Japanese firms and six domestic banks, led by private equity shop Japan Industrial Partners Inc., or JIP, for a 2 trillion yen ($15.1billion) buyout. The quantity of misinformation and hype about equities dwarfs misinformation about crypto. Money and stuff. The whole point is to keep the scam running for as long as possible. Duration drives credibility, and credibility drives recruitment. More suckers means more money, which means greater returns, which means more people, which means more money and voil. A beautiful positive feedback loop of value is created. To sustain it we must minimize withdrawals and maximize deposits. If only we werent subject to the limitations of fiat currency that are imposed by reality and the demands for cold hard cash. Enter Tether, stage left. Long after the last miner lay abandoned and the echoes of cryto punditry have become a scarlet letter, Levines Story will remain, a testament to folly and greeds bitter ashes. Future pilgrims will come seeking answers about historys greatest deception, and as they travel through its pages, The Crypto Story will serve as a reminder to ignore the whispers about the future of finance from the devil on our shoulder.
He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and Theres a house there somewhere, under the CDO-squareds. Matt Levine +Follow. Toshiba approached JIP through a financial adviser in April last year to participate in the bidding process,after the likes of Bain Capital, KKR & Co. and CVC Capital Partners had done the rounds. back concerning whether Kelly Loeffler improperly traded stocks on From the Heisenberg Report: In the wake of the FTX fiasco, much of the breathless crypto coverage emanating from the financial media (mainstream, alternative and otherwise), seems to intentionally avoid addressing the elephant in the room. Originally published at his website. A Response to Matt Levines The Crypto Story, Theres even a campaign of political bribery (lobbying) attempting to loosen regulation so new fiat in-flows can be created, greater valuations serve as a recruitment tool to ingest more fiat liquidity, and more marks (customers) result in more fees. Which makes me scratch my head as to why he cant call the industry on their bullshit in so many other cases. Speculation, market cap, exchanges, front running, wash trading, Tether, these are just a few of the things that are wrong with the article, but theres so much more. million dollars. The U.S. Doesnt Trust China Audits. A very informative piece, thank you. Levine affects an airy lack of concern, even when discussing clear misconduct. That money is not being taxed away back into the ether, so we need these financialized schemes to keep the larger grift of fiat expansion going. To me, it looks as if Levine is performing a holding-action in his piece, extending the life of the grift by telling that desperate crowd that its possible, so to some extent probable that its all going to be alright, when he knows full well that its just a matter of time, crypto is going down. Certainly thats the case for Wework with all its long-term leases. All the costs of that crypto infrastructure, the hardware, energy cost of mining, the office rent, the connectivity, the lawyering, the employees, the investors, the accountants (assuming they exist), the taxes. Not quite a ringing endorsement., To create more confusion, the board didnt recommend the offer outright, as is often customary to show conviction. Tether helps minimize outflows and maximize inflows in our investment fraud. Fiat withdrawals are limited, instead of walking away with cash, participants are given digital tokens valued at a dollar, and incentives are created to encourage investment into new scams (tokens). Tether also helps with inflows, exchanges dont need to cook their books with fake fiat deposits and risk investor confidence or the ire of law enforcement should they be discovered. Theres a better way to create buy/sell orders that manipulate token prices. Not least among them the belief that blockchain has desirable properties as a database, the idea that blockchain or crypto is somehow useful for video games, the quoting Polegs technological pseudo profundity to imply that there are web3 use cases, or the implication that crypto fraud isnt THAT effective when its managed to fund the DPRKs nuclear weapons program. The glow of US/globalized prestige is real. Subscribe Sign in. Heres What HSBC Is Getting in Its 1SVB UK Deal, At 200 Billion, Hermes Surfs Luxury Boom to Surpass Novartis, IMF Economist Who Foresaw 2008 Crisis Expects MoreBankTroubles, Jim ONeill Says UK Treasury Needs Imagination to Spur Growth, Pakistan Moves Closer to IMF Loan After Riyadh Commits Funds, ADM TargetsGut Health in Partnership With Startup Brightseed, Seven-Elevens Owner Says New Committee to Review Spinoffs, IPOs, Apples $165 Billion Cash Hoard Creates M&A Mirages, Nervous Investors Drive VC Funding for Startups Down 55%, C3.aiCEO Tom Siebel Calls Short-Seller Report Stock Price Manipulation, Tunisia Leader Rejects IMFs Diktats, Preaches Self-Reliance, Pakistan Government Lawmakers Reject Top Court Order on Polls, Investors Seen Pouring $1.5 Trillion More Into the Safest Money Funds, Barclays Says, BofA Urges Bankers to Take New Roles Focusing On Smaller Deals, Owen Wilsons New Movie Paint Needs Some Serious Touchups: Review, Patek Philippes Thierry Stern OnWhat Comes After the Nautilus, Its Tax Season! I would agree that this belongs in the negative economic activity column. 
In the olden days, the stereotype was that a lot of crypto exchanges were run by criminals or incompetent teenagers, or incompetent teenage criminals. from Bloomberg News. For one thing, theyre more careful and technically adept, so theyre less likely to lose your Bitcoin. Levine was there to explain what Is this so, is it scalable, does this mean it might have real world utility? Of course, this only applies if Tether is a criminal enterprise and their reserves are fraudulent. So take what I said with a grain of salt, but you start to understand why people are so interested in the details of Tethers holdings and business operations. Levine hits it out of the park on that one. Sure they were deceived, and sure the stock price was About. A decent rule of thumb is that all cryptocurrency exchanges are doing crimes, and if youre lucky your exchange is doing only process crimes. All told, this is the best price and only buyer Toshiba is going to getin the shortest period of time. (2) Toshiba would be obliged to repay a portion of debt that the special purpose company raises to purchase the shares, according to S&P Global Ratings. Levine took several months off in 2020 for parental leave after the birth of his second child. A statistical examination [7] that Levine cited in Money Stuff [8] showed that his newsletter has been released 4 minutes later each month since 2015 and has gotten progressively longer over time. Those celebrity ads in last years Super Bowl, and the wave of television marketing since, have given evidence that the crypto grift had its sights on the folks at the bottom of the heap, those desperate for an escape from the clutches of financial capitalists. Considering the financial mechanisms of (US) elections, the normalization, indeed prioritization of profiteering from positions of power and policy making, and the seemingly more and more common examples of (rarely prosecuted) large scale corporate fraud and outright thievery, I would hazard that cryptos economic benefits may be negligible to negative for most but very beneficial to those who actually have a say in economic policy. shareholders found out they sued? be worth more because the counterparties have contracted to buy at the For another thing, though, theyre big companies, regulators are aware of them, and they try to be good corporate citizens.. I dont think Levine is parroting disinformation intentionally, but whether its intentional or not, it should be called out. Sal, you have presented a really excellent analysis. Im also curious about the original article as Levine stated that 22k words had been cut. After 40,000 words, the reader is told, Were still early!, And the answer is, you know, maybe, give it time., If the world is increasingly software and advertising and online social networking and, good Lord, the metaverse, then the crypto financial system doesnt have to build all the way back down to the real world to be valuable. Designed to restrict movement ha. It is the Diamond-Dybvig model that won a Nobel Memorial Prize this year. But for these derivative futures, the price could in If I accept deposits in a fake currency (Tether) and consider those deposits to be equivalent to fiat, then Im not breaking any laws. Better yet, I dont have to worry about real cash deposits needed to pump my scam and I dont have to move fiat around when wash trading. So Tether fulfils the function of maximizing deposits as well. Not only does it create synthetic liquidity, but by manipulating the prices of tokens skyward, Tether helps create fiat inflows from new suckers. Is anyone else reminded of Galbraiths bezzle? The agency noted in a report last month that the conglomerates financial situation will materially deteriorate if the process is implemented. lol.
Indoor plumbing.