Ways to Hedge Interest Rate Risk
Managers at SVB did not expect rates to keep going up, they purchased long term bonds in early 2022 when interest rates were much lower than they became by the spring of 2023. The value of their bonds plummeted as rates went up which, in turn, effectively reduced their reserves. When there was a run on the bank SVB collapsed. There were ways to hedge interest rate risk which SVB did not take advantage of.
Is Crypto Going the Way of the Dinosaurs?
On a lesser scale and affecting economics instead of all life on earth, regulation has hit the crypto world and we wonder, is crypto going the way of the dinosaurs?
Crypto Gets What It Asked For
As crypto gets what it asked for, companies like Binance and Coinbase see their business models under attack. It is possible that complying with what the SEC wants could put Coinbase out of business and remove Binance from the US and other nations completely.
Why Is Bitcoin’s Market Share Growing?
Why is Bitcoin’s market share growing, along with Ethereum and Tether, while pretty much everyone else is seeing their portion of the crypto pool of value shrink?
DeFi Lending Rates Versus TradFi Rates
In comparing DeFi lending rates versus TradFi rates, how are they set, how much do they fluctuate, and how do these rates affect business operations within the given financial system?
Choosing Stocks for a Ten Year Investment Horizon
Try choosing stocks for a ten year investment horizon. By choosing investments for the longer term you can expect to even out the yearly ups and downs of the economy and the market. Over the longer term the US stock is typically the best place to put your money.
Binance Troubles Outside of the USA
Now the next largest crypto trading market outside of the US, Nigeria, has declared that Binance operations are illegal in their country. If Binance troubles outside of the US spread it will multiply its troubles with the SEC and cause serious damage to the company.
Meta Plans for the Metaverse
Despite these losses, Zuckerberg reiterated in a February 2023 earnings call and again in a presentation to all of Meta’s staff his intent to press ahead with the company’s Metaverse plans. Here are some of the things we know about Meta plans for the metaverse.
Will Regulators Kill Crypto?
The crypto world started to think that regulation would not be such a bad thing. Now, as the SEC and CFTC bear down on Coinbase and Binance many are starting to wonder, will regulators kill crypto?
Frozen Binance Assets and DeFi Investments
The SEC is asking the court to freeze Binance’s assets to make sure that US customer assets are protected. Because Binance is such a large business offering trading in so many tokens, how will frozen Binance assets and DeFi investments work out?