Attention Economy


Sunday, December 1, 2024

Financial Instability Concerns

Stand by for financial instability
https://www.ft.com/content/3963b783-00da-44df-a45b-39b54b9f7c78
The combination of huge public debt issuance and Trump’s notorious unpredictability is a toxic mix for markets
 
The grim ghost of crypto future: Overconfidence since the election victory of Donald Trump could tee the sector up for its next collapse
https://www.ft.com/content/d56802aa-fa82-40f4-9cc6-36bbb8d2b35e
FT’s Jemima Kelly:
I have steered clear of talking about crypto as a “systemic risk” in the past because it has been so relatively small, and so disconnected from the rest of the financial system. But that is changing. Following the SEC approval of bitcoin exchange traded funds earlier this year, crypto has become far more closely connected to the rest of the financial system. And the numbers are enormous: BlackRock’s recently launched bitcoin ETF has already drawn in an astonishing $48bn.
Martin Walker, honorary research fellow at Warwick Business School, is worried that regulators are not able to keep up. “One thing history teaches us about financial crises is that risk always builds up and then explodes in areas the regulators never seem to expect,” he tells me. “Faultlines in the financial system are not always obvious . . . Crypto finance is so large now there are sure to be macro risks . . . that are both dangerous and little understood.” 

Trump’s Return Heralds Litigation Peace for Crypto
https://www.wsj.com/finance/regulation/trump-crypto-us-war-0b91cc21