The bull run might come from Italian Investors
I'm not expert by all means so take this whole thing with a bucket of salt, not just a grain. But it seems like the situation in Italy right now might be a catalyst for the markets to really become solid. At this point in time its pretty speculative, but the logic does follow through.
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Of course, finances specially in a global scale get complicated and I wont attempt to bore anyone with things that might not be of their interest. I think most of the people who visit my blog, don't do so for my financial advise, and if they do, they might be fooling themselves a little bit.
If you are familiar with the way government bonds work, and their importance to the health of a country, simply knowing that Italy's bonds are spiking might be enough to trigger some warnings in your head. Having lived in South America through the crisis that turned Ecuador into a Dollarized economy, I know very well the ramifications of high interests and the attempt to appeal to greedy buyers and how its effectively a time bomb and nothing else.
A simpler explanation for those who are a little newer to this, would be to see government bonds as a representation the debt of the Italian government, by jacking up the interest rates they are paying out to the bond buyers, they are basically attempting to gain liquidity to pay the country's own debt. This sounds good on paper, but only if the buyers were a diverse group and not mainly one financial institution, The European Central Bank.
We already saw a few years ago what happened to Greece, and if you don't know anything about that, I don't know what to say anymore. Greece has never really recovered, only slightly after all these years.
So if Italy defaults, why is that good for crypto?
It's obviously not a good thing for the country itself, to be honest with you its a terrible thing. The speculation however comes from the possibility that all those financial institutions and all those investors who are exiting the bonds market would jump into a new one with a little more resilience.
Basically, the investors need to find a way to diversify and spread out the risk. Crypto offers them the unique opportunity to not be reliant on the ineptitude of a poorly ran government, and I have to apologize if I'm offending any Italians with my words. However, this has been brewing on the stove for a long time, this is not a current occurrence.
When will this happen?
Absolutely no clue, this whole thing will play out like dominoes when it does, and there is absolutely no way the shockwaves wont be felt in a global scope. Us however, who participate of cryptocurrencies are shielded in a very solid way against the ridiculous over printing of money, and the manipulation of the financial institutions disguised as countries.
For those who love numbers as I do, check this out, this is how the greed trap is set. Some will walk away with their ankles broken, or then again they won't, Who knows? I've just seen this whole thing play out so many times, I doubt this time will be any different.
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Not even two weeks ago Goldman Sachs does this:
The Italians are being screwed and have been for years now. And like almost always the people's anger gets moulded into extreme nationalism so they now have a populist government, following the example of most screwed-over countries, which is always a sad thing to witness but unavoidable it seems. Don't kid yourself: the name of the social- political- and economic developments we witness here is "fascism".
And yea, we might profit from that, we probably will. I just can't feel good about it.
I do feel good about your post though :-) It's a good and honest one, like always :-)
wow.. this the dorsal fin my friend... there are sharks in the water.
Fascinating.
More countries, like Italy and Greece, need to take on iceland’s Lead and tell the central & major banks, not only to go and get fük’d, but charge them and the politicians in bed with them with criminal negligence.
It’ll be inteeesting to see how that effects crypto.
as my friend @lexiconical says and I agree, the failure of the governments is inevitable, and when it happens it will be like dominoes.
No doubt. The failure of oligarchical capitalist economics will cause the failure of governments world wide.
Right on, Sir Nathan! Central banks and the BIS (Bank of International Settlements) in particular, are the bane of all of humanity. Iceland indeed got it right at that point in history! The larger war shall persist for far longer than I wish to concede. The sooner the central-banking cartels collapse - the better... However, I've been waiting for Godot to no avail for nearly 30 years now. Let's keep our fingers crossed... the sooner the better!
The only safe-haven that exists - does so exclusively in the form of adequate diversification of one’s capital assets. Every financial market, including Cryptos, shall always be subject to regular wipeouts on a cyclical basis. It’s simply a matter of timing. A broken clock is spot-on twice each day. All that said, no matter how well one hedges their interests, there comes a time where there is simply no place to hide regardless of how well-prepared one may be. Yes, those better prepared will fare far better and have huge gunpowder at their avail to buy hand-over-fist at fire-sale prices while blood spills in the streets, however, your average Joe will more likely than not be slaughtered without mercy…
that is the choice crypto gives the average joe, the choice to not play the game he can't control in the slightest and that is rigged to screw him.
Indeed, Crypto is one of many required elements of essential diversification - no doubt. However, it is by no means a panacea one should rely upon to save their asses when the shit hits the fan... One still needs a full arsenal of various asset classes under their belts and at their immediate disposal if they wish to survive fruitfully over the long haul. But then again, that's just my opinion, and WTF do I know...
What evidence is there that the average Joe has any meaningful level of control within the crypto realm? And what evidence exists to assert that the crypto realm is not similarly suited to screw the average Joe in kind. Answers to such questions are vital to the accuracy of perceptions that one forms in the grander scheme of things. Gotta stay real about it, brother... Just sayin'...
valid questions, I guess we also make these judgment standing on a basis of our biases.
But you are right, it would take newer generations to adopt crypto like this, and we might not be there yet. we might not
The bias to which I always default is a bias based upon universal truths that have proven themselves reliable over the course of several decades. Such truths are simply unavoidable insofar as forming one's "bias" as it were. Nonetheless, each individual must travel their due course to arrive at such wisdom... The price in doing so is well worth the price of admission so long as one manages to stay solvent and afloat during the course of such an education...
Portugal Italy Greece Spain, gather the initials and you can read how most of other europeans call us due to impoverished economy :(
All beautiful countries and people.