As soon as equity has to be put upfront, there is risk. As soon as there is lending, there is risk.
The synthetics become more and more strange creatures totally devoid of any connection with real life trade. Even the label: True-Sale, indicates that there is something like: fake-sale. And that is exactly what it is: It is one big fakery. However, all what is being done is to redirect the thrust-vector of a pop of this ballooning idiocy.
All it takes is one bankruptcy of a major European-bank. And given the climate? I would not be surprised if a few enterprising consumers start pooling their complaints and not having their money been paid after being thrown out of a bank for not being politically correct.
The basic management question here seems to be:
As soon as equity has to be put upfront, there is risk. As soon as there is lending, there is risk.
The synthetics become more and more strange creatures totally devoid of any connection with real life trade. Even the label: True-Sale, indicates that there is something like: fake-sale. And that is exactly what it is: It is one big fakery. However, all what is being done is to redirect the thrust-vector of a pop of this ballooning idiocy.
All it takes is one bankruptcy of a major European-bank. And given the climate? I would not be surprised if a few enterprising consumers start pooling their complaints and not having their money been paid after being thrown out of a bank for not being politically correct.
Don't go to banks. It's the same as trusting your health to doctors.
I just wish there was a good alternative.
asset-backed crypto will be, eventually. It's not there yet. Gold and silver are ~reasonable~ (not perfect) ways to protect wealth not in a bank.