Alex Cardona

I pledged a paid subscription to Platforms, AI, and the Economics of BigTech platforms.substack.com/?utm_medium=em…

@TheCryptoLark So what do we do now?

Crypto is crashing once again. Here's why: Yesterday, the S&P 500 saw its worst day since December 2022. The Nasdaq had its worst day in 21 months. $1.1 trillion was wiped out of the US stock market yesterday. On top of that, Mt. Gox moved $2.47 billion in $BTC for repayments. Fear and panic is back in the market.

$5.99 for bag of chips too much? Don't buy it $19 for a movie ticket is outrageous? Don't go see it $237 for a dinner & drinks for two? Cook at home The best way to tame inflation is to stop buying stuff. If demand drops, the prices will drop.

@TheCryptoLark Not mine!

BTC Reserves are running dry. According to Coinglass data, there’s only 1.84M Bitcoin available across all major exchanges. The supply shock is real!

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Keep trading partners in sync across your supply, logistics, and asset management operations. #SAPBusinessNetwork makes it happen. imsap.co/6011374Lt #supplychain @SAP

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@MarioNawfal Move on from this bickering please …

#BREAKING: UBS has agreed to buy Credit Suisse after increasing its offer to more than $2bn This is about 70% lower than Credit Suisse's closing price on Friday The Swiss National Bank will offer a $100bn liquidity line to UBS as part of Credit Suisse deal Is the worst over?

@MarioNawfal Space please

#BREAKING: 186 banks have similar risks as Silicon Valley Bank Economists assessed asset books and market value losses of US banks, as well as banks’ funding percentages. According to the new study, if half of these uninsured depositors were to withdraw funds rapidly from any of these 186 U.S. banks, even insured depositors might face impairments. This is due to insufficient assets available for all depositors. In such cases, intervention from the FDIC could become necessary. “Our calculations suggest these banks are certainly at a potential risk of a run, absent other government intervention or recapitalization.”

Crypto needs to de-risk itself from those unstable and volatile banks

This was not a bailout. During the GFC, the gov’t injected taxpayer money in the form of preferred stock into banks. Bondholders were protected and shareholders were diluted to varying degrees. Taxpayer money was put at great risk. Many people who screwed up suffered minimal to no consequences. Those were bailouts. Here, shareholders and bond holders have been wiped out. The @FDICgov insurance fund capitalized by premiums paid by banks will absorb any losses. The fund will recoup any losses by assessing more premiums on the banks. Had the @FDICgov @USTreasury and @federalreserve not intervened today, we would have had a 1930s bank run continuing first thing Monday causing enormous economic damage and hardship to millions. More banks will likely fail despite the intervention, but we now have a clear roadmap for how the gov’t will manage them. Bank boards and managements have received a massive wake up call. Being a director or CEO of a bank that fails is no fun: years of litigation, regulatory investigations, personal liability, potential civil and criminal charges, and enormous reputational damage. Our gov’t did the right thing. This was not a bailout in any form. The people who screwed up will bear the consequences. The investors who didn’t adequately oversee their banks will be zeroed out and the bondholders will suffer a similar fate. Importantly, our gov’t has sent a message that depositors can trust the banking system. Without this confidence, we are left with three or possibly four too-big-to-fail banks where the taxpayer is explicitly on the hook, and our national system of community and regional banks is toast. Our government did the right thing for the country. We are very fortunate it did so.

Treasury Secretary Janet Yellen said there would be no federal bailout for Silicon Valley Bank during an appearance on CBS' "Face the Nation" today apnews.com/article/silico…

US Treasury Secretary Janet Yellen on the SVB failure: we are trying to meet the needs of depositors, but are not looking to bail out owners of large banks (CBS News) cbsnews.com/news/janet-yel… #a230312p5" target="_blank" rel="nofollow noopener">techmeme.com/230312/p5#a230…

Here is the full transcript of my interview with Treasury Secretary Janet Yellen on "⁦@FaceTheNation⁩ " March 12, 2023 - CBS News cbsnews.com/news/janet-yel…

Treasury Secretary Janet Yellen rules out a bailout for Silicon Valley Bank. "We're not going to do that again," she said. cbsn.ws/3TdywqP

Amazon, Apple, and Berkshire Hathaway are sitting on a cash warchest. The banking system is under pressure from the internet - digital bank runs & social media. Big tech firms, private equity, and many FinTech startups, would love to own, re-capitalize, and modernize banking. We can revitalize the brittle banking sector with capital and engineering talent. The problem? There are antiquated laws that prohibit the commingling of banking and commerce. This is in part why Walmart failed to acquire a bank in the 2000s. Incumbents pushed back. It’s also why $AMZN has conquered nearly every industry - except banking. Private Equity firms cannot own more than 24.9% of a bank. So tech firms, capital and entrepreneurs cannot come to the rescue when a bank like $SI or $SIVB needs help. That makes banks vulnerable to bank runs in the digital era. The answer? Enable private capital and technology to enter the sector - while maintaining the highest standards of ‘safety and soundness’. We cannot afford bank bailouts. But we also want the security and knowledge that our deposits are safe. The future of banking is bright, but only if we are willing to embrace change and adapt to the new reality of digital finance. @SenSherrodBrown @PatrickMcHenry @ElectFrench @LHSummers

@TheCryptoLark None nada zilch

What #crypto have you been buying recently?

@TheCryptoLark Neither is it safe sitting in USDC right about now

Just a reminder that your money is not safe sitting in the bank. The sooner you realize this, the sooner you will understand why #bitcoin.

10 metaverse must-reads mck.co/3SbVU7O via @McKinsey