Krishna Memani
@KrishnaMemani
Actually Bianco's point is very good…2008-9 was called a housing crisis when it was a banking leverage crisis…so this isn't a tech crypto speculation as much as bond speculation…that is unwinding hard
Jim Bianco biancoresearch.eth @biancoresearch
Replying to @KrishnaMemani
I agree …
but substitute the bond market for Crypto. The bond market was the most speculative asset (thanks to years of central bank printing) and now it is unwinding hard.
https://twitter.com/KrishnaMemani/status/1523094155206881280
Bianco brings up a good point, but misses out one thing. All leveraged assets, by and large, use Treasuries as collateral. So, as trades get unwound, their collateral is of no use either, and gets thrown out as well. We're seeing a massive deleveraging going on again and Treasuries are the CURRENCY of leveraged trading, NOT US$. All just happen to be priced in US$, but the relative value is in the face value of the Treasury security used for collateral. Small, but very big distinction. Interesting subject.