I would have to disagree that CRE will lead to the long lasting pain like it did post 2008. The solution to 2008: reliquidate the banks but leave the home buyers holding the bag meant there was a huge wealth transfer from the lower and middle class to the banks. This transfers dollars from spenders to (given the now tighter rules and fear) savers. This meant all those dollars had a significant drop in velocity and in a consumer economy that'll lead to significant economic slowing.
I don't think the Fed will make the same mistake, I think they will make all new mistakes. I think they are more likely to reliquidate EVERYONE. This is not instantly inflationary however as that is just solidifying the credit dollar in the system. It becomes inflationary as those new dollars get releveraged and new credit is created against it.
Either way, this is good for Bitcoin.
Michael
npub10j…xar98
2023-04-16 14:05:26
in reply to nevent1q…c2fy
Author Public Key
npub10jzgn0sfgm83pnha2hsjlgq03hj0u6pmwqhjh70wuar7mmermaesgxar98Published at
2023-04-16 14:05:26Event JSON
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"pubkey": "7c8489be0946cf10cefd55e12fa00f8de4fe683b702f2bf9eee747edef23df73",
"created_at": 1681653926,
"kind": 1,
"tags": [
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],
[
"p",
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"content": "I would have to disagree that CRE will lead to the long lasting pain like it did post 2008. The solution to 2008: reliquidate the banks but leave the home buyers holding the bag meant there was a huge wealth transfer from the lower and middle class to the banks. This transfers dollars from spenders to (given the now tighter rules and fear) savers. This meant all those dollars had a significant drop in velocity and in a consumer economy that'll lead to significant economic slowing.\n\nI don't think the Fed will make the same mistake, I think they will make all new mistakes. I think they are more likely to reliquidate EVERYONE. This is not instantly inflationary however as that is just solidifying the credit dollar in the system. It becomes inflationary as those new dollars get releveraged and new credit is created against it.\n\nEither way, this is good for Bitcoin.",
"sig": "8e46ec6c6d2f8f5fa952ddbbc5970276204d825e4d0a705ec0de35b0416277dc63265bdbb3506cf5e94c4da60e3ef61758e54c60f92a4e4dbb881098477926f4"
}