So, issue a 100% backed stablecoinNovember 16, 2019 Tim WorstallBusiness12 CommentsExcept the backing is a stock market index. Now, work out how the issuer makes a profit……. previousEh?nextPah, mere raising of money 12 thoughts on “So, issue a 100% backed stablecoin” Hallowed Be November 16, 2019 at 1:51 pm backed for the initial value or the index level whichever the lower. Issuer keeps any growth in the index. Holder keeps any in the coin. Lower band that should make it less volatile. john77 November 16, 2019 at 4:38 pm Who gets the dividends? Tim Worstall November 16, 2019 at 4:42 pm Huzzah! We have a winner. As with margin calls at brokers, or premiums in an insurance company, the earnings from the float belong to the managers of the float, not the customers. True, if FTSE100 is offering 4% dividends then that’s a pretty hefty fee for running an index fund. But would be fun if there were enough stupid people out there to buy it through a stable coin…. isp001 November 16, 2019 at 5:53 pm even if the dividends are rolled back in the manager can earn fees by lending the stocks out. that should be good for 40 basis points pa – about the same as many low fee mutual funds Hallowed Be November 16, 2019 at 7:08 pm ah yes.. BBC explainer on why Zimbabwe had hyper inflation surprise suprise manages not to explain it. Yeah they mention some factors but not the actual immediate cause (printing money to pay bills) https://www.youtube.com/watch?v=nX3vF3G5Vcg Pcar November 16, 2019 at 11:38 pm @Hallowed Be That was terrble, she explained nothing – it was SJW word salad . OT Eddie Stobart just weeks from collapse “Eddie Stobart Logistics has been forced to accept an emergency high-interest loan to avoid a collapse before Christmas that would put more than 6,500 jobs at risk. The firm is taking a £55m loan from investment firm Dbay Advisors – with interest charged at an initial rate of 25pc…” If Stobart collapses, is there sufficient spare capacity available to fill the gap? Tractor Gent November 17, 2019 at 8:38 am I see a vast variety of trucker company logos on artics on the A14 & A1 as I travel around, and the proportion of Eddies has dropped a lot over the years, so the Eddie gap will be quickly filled. I wonder how this will affect Southend airport though. Bloke in Wales November 17, 2019 at 9:39 am If Stobart collapses again, is there sufficient spare capacity available to fill the gap? FTFY Andrew M November 17, 2019 at 9:44 am I did once see advertised a fund which offered to track 120% of growth in the FTSE100 but with a money-back guarantee if the value fell. There was no mention of dividends, which I assume was how they covered their costs. Investors in such things aren’t total idiots. They live in the Dunning-Kruger realm, where a little knowledge is a dangerous thing. They think they’re being clever by buying whatever weird structured product you’re offering. The Meissen Bison November 17, 2019 at 10:02 am Hallowed Be / Pcar I fled the appearance of those lips rather than the sound they made. Pcar November 17, 2019 at 9:36 pm @TG Stobart Air and Stobart Trucks are separate entities @BiW : ) Pcar November 18, 2019 at 11:08 pm @TMB I watched again, her ramblings exposed one thing: BBC more scared of angering SA & Zim than angering their UK funders. The 10 seconds where “land reform” mentioned exemplifies BBC agenda Lips: look like the “stick on window while shopping” type Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.