One other point here is that if this is the story, then it is not a liquidity crisis but a solvency one. That is, the problem is not a timing mismatch, in which FTX’s customers asked for their cash back but FTX did not have enough ready cash because it had long-term but money-good loans out. The problem is that FTX took its customers’ money and traded it for a pile of magic beans, and now the beans are worthless and there’s a huge hole in the balance sheet.
Makes sense to me. Now, whether it’s actually true or not……
Signore Ponzi will be laughing fit to bust in his particular circle of hell.
At least Big Tech is a reliable investment tho
<B Amazon Becomes World’s First Public Company to Lose $1 Trillion in Market Value
Amazon market cap shrinks to $879 billion from $1.88 trillion
Microsoft is close behind with $889 billion in value lost – Bloomberg
We’re not coming out of this unhurt, are we?
I’m also worried about the fuel and wood situation, lads:
Gas prices in the UK have more than a doubled in the space of a week, according to new official data.
The Office for National Statistics (ONS) found that the System Average Price (SAP) of gas rose by 110% in the week to November 6, compared with the previous week.
This was the biggest week-on-week increase seen throughout 2022, it said.
Furthermore, prices soared 322% above the level seen in February 2020, before the pandemic.
Don’t worry Steve,
The big brains in Whitehall have a plan. They’re going to build more windmills and buy fracked gas from America and at the same time double down on our Net Zero commitments.
Hmm, thinking about it further, yep, we’re fucked.
“The big brains in Whitehall have a plan. They’re going to build more windmills and buy fracked gas from America and at the same time double down on our Net Zero commitments.”
My arable farming contractor also runs a business hiring out large telehandlers. One is currently down at Bristol docks helping pile up wood chip that has come in on a boat from Brazil. How ‘sustainable’ do we think that wood chip from Brazil is children?
@ Steve
That exact wordage is appearing in lots of news sites; it’s a round robin release of statistics selected for drama. The ONS has released some cold data, a hack has pulled bits suitable for click bait and sold it on.
Clues:
“. . . system average price . . .” – what dat?
“. . . rose by 110% in the week to November 6, compared with the previous week.” – eh?
“This was the biggest week-on-week increase seen throughout 2022 . .” – increase of above strange measure
“. . . it said.” – the ONS didn’t say anything, it released an excel spreadsheet.
“Furthermore, prices soared 322% above the level seen in February 2020 . . .” – bizarre period.
.
Yes, the gas price is shit. Yes, the gas price is volatile. But within that reality November is nothing special:
https://www.bbc.co.uk/news/topics/cxwdwz5d8gxt/natural-gas
To avoid being a Henny Penny you need to look beyond the chicken shit.
What part of “the media are lying cunts” was it you forgot?
PJF – my current anxiety level is “About to climb Big Ben in a Batman suit”.
Why can’t they just sell magic beans to the BoE?