Some of us find it hard to believe there are any reasonable people in the crypto space. The whole thing seems like a dumb sham. The FTX collapse and contagion is sad but unsurprising.
Not even remotely true. We need regulation to keep the big banks honest but that doesn’t mean nobody knew what was going on. We were living in New Haven at the time and briefly considered buying. I got pre-approved by BofA for a ludicrous amount with almost no diligence, and was quoted half that by a Connecticut state bank which actually checked things. I had a good conversation with the loan officer who said that it was going to be ugly for the big banks but they had kept their foreclosure rates low for decades by sticking with traditional banking practices and weren’t planning to change. A few years later I checked and he was right: their foreclosure rate had gone up a tiny fraction but they were fine.
Correct. That's why finance needs to be regulated up the ass. Repealing Glass–Steagall was a terrible idea and probably eventually led to 2008. Cryptocurrency generally seems to want to go in the opposite direction and have a speculative free-for-all.
