My question: Who isn't holding the bag in this climate?
Tether (issues usdt) is winning big right now because they mostly hold short term t bills.
Well, they claim to. Since Tether is officially sitting on a giant money printer, their best strategy is to do absolutely nothing but count their money. So insofar as they're doing anything else it suggests they're lying.
After the BUSD debacle, it’s clear that onshore and regulated reserves for stablecoins are a huge risk for defi dapps built on top of them. US policy regarding USDC and other such US regulated stablecoins are at risk of change at any time. Since well designed defi dapps are not upgradeable, future policy risks must be considered when choosing which stablecoin to utilize. USDT’s offshore and opaque balance sheet is proven safer for defi dapps than US regulated stablecoins. I wish this weren’t the case, but it’s proven in practice.
Someone may have bought 10 year 2% notes intending to hold to maturity because they thought inflation would stay at 1% and they just wanted to park cash. But with inflation at 3-5% they now need to dump and buy something else.
People change their tactics to achieve their strategy.
I highly doubt they are serious, but that's the interpretation I have if their POV.
Actually people who bought Treasuries in 2021 are almost underwater on it already, just in inflation these last two years. Cumulative price increases for 2021 + 2022 was 14.5%, while 10 years of 1.5% interest gives you 16%. Inflation would have to be basically zero for the next 8 years for them to break even.
At some point we have to fix structural economic problems without the money printer.
There’s so much debt, individuals, corporations and governments are all deep in debt.
We can just pretend the debt does not exist (restructuring) but that’s pretty much the same as printing that amount of money, just done in a different way.
The only non-printer way is to get some sort of exponential productivity gain.
Maybe if we get the absolutely best case for AI that could give the productivity gains we need. Obviously assuming the benefits of AI are shared in an equitable way.
Could wait for stock market to drop (if it a happens) and grab some of your favorite companies for cheaper