FTX is not Lehman but crypto is telling us something

Tuesday, 15 November 2022

When Tether broke the buck earlier this year I wrote:

Only $tr or so is held by the punters so that’s not going to be enough to damage overall demand.

But the other $1tr half is institutional, read Wall Street. It doesn’t take a genius to guess that a lot of equity has been leveraged in one form or another.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.