Crypto Mania Now Heading For The Crypt?

Andy Kessler wonders “When Will the [Crypto & Stock] Selling Stop” as “some won’t survive the drop”, but maybe real Q is “Why Did Any Investor In Right Mind Believe in Faux Currency & Exotic Stocks to Begin With?”

Mr. Kessler didn’t pull any punches in describing how bad the situation is: “In the past six weeks, $1 TRILLION in cryptocurrency value has evaporated – yes, TRILLION. Since there was nothing of economic value driving up crypto prices, only mass delusion, there hasn’t been much to cushion their descent. It’s as if a giant bellows has been blowing hot air into bitcoin and others, and it suddenly stopped working. Fanboys yelling ‘store of value’ and ‘fiat hedge’ can’t seem to explain why bitcoin is falling as inflation rages.”

Here's one possible take. Just recall the 2008 real estate/high risk mortgage crash that, like our current financial dilemma, was helped if not enabled by a similar delusion in extremely low interest rates & wink wink lending standards that fueled a supposedly never-ending rise in a housing price bubble in the U.S. & around the world. Wall Street loved it. Homeowning voters got dizzy with it. Democratic pols demanded it, i.e., to help the poor buy into the American Dream, even if they couldn’t afford it. And, the MSM fed the monkey with glowing, Bernie Sanders-like predictions that printed or fake money has no consequences in the real world.

Davd Soul