I.Am.Ironman Posted September 29, 2022 Share Posted September 29, 2022 46 minutes ago, Warhippy said: Bitcoin is STILL confusing the hell out of me. I sitll don't get it. I still don't understand it, it is STILL around $25-$30k per coin ish. How? Why? Do people still believe Bitcoin/Ethereum/Cardano is going to be a serious thing? Is there any potential for a bump in crypto? Or is this whole sham finally dead because people realized it was real money for mario coins the whole time? Bitcoin differs from Ethereum and cardano (I believe) in that bitcoin is proof of work and eth is proof of stake (which uses less energy). Bitcoin also has a finite supply whereas as other coins are typically inflationary as they are meant more of a means of transacting peer to peer with speed. The use case for btc is a store of value and the ability to transact peer to peer (anywhere in the world) on a secure network. It cuts out the bank.. two banks actually as each peer would theoretically have a bank and have to deal with wire transfers etc. that is an oversimplified explanation, obviously crypto and blockchain gets much more complex and I am far from an expert but am trying to learn. People were actually able to donate to Ukraine by sending Ethereum and bitcoin which I think is pretty cool. I think it provided Ukraine with like 20million at the start of the conflict. Try calling up BMO to donate money directly to the Ukrainian army lol. As for the emissions noted by @Sophomore Jinx.. those stats are pretty cherry picked. So btc has emitted as much co2 in 13 years as Columbia did in a single year (2018). It’s a grabby headline but lacks context. Early on a lot of bitcoin miners were in China (primarily coal driven earlier this decade) but have since moved to NA and Europe where they draw on cleaner sources of energy (hydro, nuclear, renewables, NG). The financial sector uses a lot of energy as well (much more than crypto). I think the environmental criticism was warranted 5 or so years ago but it has improved greatly in recent years. Link to comment Share on other sites More sharing options...
nuckin_futz Posted October 2, 2022 Share Posted October 2, 2022 (edited) Hold on to your hats. If this is true there's about to be some madness going on........... There are some serious rumours doing the rounds about a major bank failure October about to start with a disaster? ABC Australia is reporting that a major investment bank is on the brink, citing 'a credible source'. Most are pointing towards Credit Suisse. It was caught out in the Archegos disaster and since then (Feb 2021) its share price has spiralled to $3.90 from $14.90. Moreover, the credit default swaps are at distressed levels. A memo from the CEO to staff circulated late on Friday: "I know it's not easy to remain focused amid the many stories you read in the media – in particular, given the many factually inaccurate statements being made. That said, I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank," he wrote. Today, Fox Business' Charlie Gasparino reported that: "CEO Ulrich Koerner has been meeting w major institutional investors worried the firm is on shaky financial footing and assuring them the bank has strong capital, liquidity etc. One large investor tells me "the bank and wealth management platform are very valuable, but the investment bank is a disaster." The CDS's of the bank have been trading as if a Lehman Moment was about to hit." This could lead to an ugly open tomorrow and something far worse if it proves to be true. The bank will have to effectively refute this in the strongest possible fashion, otherwise they'll have clients pulling money and couter-parties cutting credit lines. Rumours like these can be self-fulfilling. We've already got an inflation crisis and an energy crisis. How about a banking crisis too? Edited October 2, 2022 by nuckin_futz Link to comment Share on other sites More sharing options...
Warhippy Posted October 2, 2022 Share Posted October 2, 2022 50 minutes ago, nuckin_futz said: Hold on to your hats. If this is true there's about to be some madness going on........... There are some serious rumours doing the rounds about a major bank failure October about to start with a disaster? ABC Australia is reporting that a major investment bank is on the brink, citing 'a credible source'. Most are pointing towards Credit Suisse. It was caught out in the Archegos disaster and since then (Feb 2021) its share price has spiralled to $3.90 from $14.90. Moreover, the credit default swaps are at distressed levels. A memo from the CEO to staff circulated late on Friday: "I know it's not easy to remain focused amid the many stories you read in the media – in particular, given the many factually inaccurate statements being made. That said, I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank," he wrote. Today, Fox Business' Charlie Gasparino reported that: "CEO Ulrich Koerner has been meeting w major institutional investors worried the firm is on shaky financial footing and assuring them the bank has strong capital, liquidity etc. One large investor tells me "the bank and wealth management platform are very valuable, but the investment bank is a disaster." The CDS's of the bank have been trading as if a Lehman Moment was about to hit." This could lead to an ugly open tomorrow and something far worse if it proves to be true. The bank will have to effectively refute this in the strongest possible fashion, otherwise they'll have clients pulling money and couter-parties cutting credit lines. Rumours like these can be self-fulfilling. We've already got an inflation crisis and an energy crisis. How about a banking crisis too? What are the ramifications of this if CS and DB in Germany are truly on the verge?? Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 2, 2022 Share Posted October 2, 2022 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 2, 2022 Share Posted October 2, 2022 If Credit Suisse goes under it's going to make 2008 look like a pre-season Canucks game... Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 2, 2022 Share Posted October 2, 2022 You know the market is about to crash when everyone is trying to sell their Lambo... Link to comment Share on other sites More sharing options...
nuckin_futz Posted October 2, 2022 Share Posted October 2, 2022 20 minutes ago, Warhippy said: What are the ramifications of this if CS and DB in Germany are truly on the verge?? The troubles at Deutsche are nothing new. I mean they happily did business with President Dotard didn't they? These stories regarding the financial health of DB are nothing new. As for CS going belly up. It wouldn't be like 2008 because 2008 was a problem of over leverage and systemic risk. That has been reigned in to levels that can sustain a problem at the Investment Banking arm of CS. No Central Bank is going to sit by and watch another crisis unfold. Especially not the SNB as long as Thomas Jordan is at the helm. Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 2, 2022 Share Posted October 2, 2022 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 2, 2022 Share Posted October 2, 2022 Link to comment Share on other sites More sharing options...
Boudrias Posted October 2, 2022 Share Posted October 2, 2022 9 hours ago, nuckin_futz said: The troubles at Deutsche are nothing new. I mean they happily did business with President Dotard didn't they? These stories regarding the financial health of DB are nothing new. As for CS going belly up. It wouldn't be like 2008 because 2008 was a problem of over leverage and systemic risk. That has been reigned in to levels that can sustain a problem at the Investment Banking arm of CS. No Central Bank is going to sit by and watch another crisis unfold. Especially not the SNB as long as Thomas Jordan is at the helm. I kinda wrote off Europe years ago. IMHO their banks are not investible. Politics permeates much of their investment process. 'To big to fail' is a reality. Countries will make those judgements. I doubt either DB or CS will go under. If the fallout could be contained more minor banks should be allowed to fail. 1 Link to comment Share on other sites More sharing options...
nuckin_futz Posted October 2, 2022 Share Posted October 2, 2022 3 hours ago, Boudrias said: I kinda wrote off Europe years ago. IMHO their banks are not investible. Politics permeates much of their investment process. 'To big to fail' is a reality. Countries will make those judgements. I doubt either DB or CS will go under. If the fallout could be contained more minor banks should be allowed to fail. You were so right to write off Europe. There just hasn't been impressive growth there in a long time. Only game in town as far as growth goes has been USA, Canada, China, the Asian Tiger economies and Latin America. Direct investment in China is difficult, the Asian Tigers have so many boom and bust cycles while Latin America is fraught with other risks like political instability, inflation, currency risks. Not many sensible places to park one's dough. 1 Link to comment Share on other sites More sharing options...
Boudrias Posted October 2, 2022 Share Posted October 2, 2022 28 minutes ago, nuckin_futz said: You were so right to write off Europe. There just hasn't been impressive growth there in a long time. Only game in town as far as growth goes has been USA, Canada, China, the Asian Tiger economies and Latin America. Direct investment in China is difficult, the Asian Tigers have so many boom and bust cycles while Latin America is fraught with other risks like political instability, inflation, currency risks. Not many sensible places to park one's dough. I lean heavily on the USA. I want to retain the dividend tax credit as much as possible so I look for Canadian companies with healthy USA sales or investments. When the USD strengthens, like now, the return in CDN get a bump. 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 3, 2022 Share Posted October 3, 2022 Oh no, Credit Suisse just got the kiss of death... 3 Link to comment Share on other sites More sharing options...
nuckin_futz Posted October 3, 2022 Share Posted October 3, 2022 9 hours ago, Elias Pettersson said: Oh no, Credit Suisse just got the kiss of death... Link to comment Share on other sites More sharing options...
Warhippy Posted October 3, 2022 Share Posted October 3, 2022 2 hours ago, nuckin_futz said: well that didnt take long eh 1 Link to comment Share on other sites More sharing options...
nuckin_futz Posted October 3, 2022 Share Posted October 3, 2022 59 minutes ago, Warhippy said: well that didnt take long eh The first tweet was fake. Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 3, 2022 Share Posted October 3, 2022 So did anyone sell off some stocks today? This was a nice dead cat bounce to sell into. I'm pretty liquid now, don't own much of anything other than my dividend paying stocks. At least if they drop I will still get my dividend and can reinvest the dividend into more stock at a lower cost... Link to comment Share on other sites More sharing options...
Elias Pettersson Posted October 3, 2022 Share Posted October 3, 2022 6 hours ago, nuckin_futz said: So this means Credit Suisse will get bailed out or merged with another financial institution. I wonder how much the bailouts of Credit Suisse and Deutsche Bank will cost? Link to comment Share on other sites More sharing options...
Boudrias Posted October 3, 2022 Share Posted October 3, 2022 1 hour ago, Elias Pettersson said: So did anyone sell off some stocks today? This was a nice dead cat bounce to sell into. I'm pretty liquid now, don't own much of anything other than my dividend paying stocks. At least if they drop I will still get my dividend and can reinvest the dividend into more stock at a lower cost... My portfolio FW/PE is 10.3 so I am happy to hold and collect my dividends. I am watching earnings to see if they start dropping but I am actually expecting increases on my energy stocks. Utilities are relatively bullet proof on eps. That was quite a ride today. 1 Link to comment Share on other sites More sharing options...
nuckin_futz Posted October 3, 2022 Share Posted October 3, 2022 1 hour ago, Elias Pettersson said: So did anyone sell off some stocks today? This was a nice dead cat bounce to sell into. I'm pretty liquid now, don't own much of anything other than my dividend paying stocks. At least if they drop I will still get my dividend and can reinvest the dividend into more stock at a lower cost... Historically speaking, selling equities with the S&P down 23% hasn't been a smart thing to do. 1 1 Link to comment Share on other sites More sharing options...
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