FTX was an unregulated entity and failed. Silvergate Bank, Silicon Valley Bank and Signature Bank were regulated banks and failed. Banks failed after the lessons of the GFC were drawn and banks were submitted to enhanced regulatory scrutiny.
source: Bloomberg
What inference does that warrant about regulation, if any?
Regulation provides the "political/financial elite" with an excellent excuse to rescue their cronies (see what happened to SVB!). It also provides the necessary cover to aggregate control in fewer and fewer hands. Thus creating more systemic risk and more excuses to do more of the same.
The whole thing really is a farce.
I tried multiple times telling chatGPT and Bing as well that regulations are useless and a waste if regulated banks can fail so easily. No matter what I tried, they both say that regulations are important and essential "to ensure the stability and safety of the financial system"... 🙃
Yet it has been consistently proven that they can at best "fight the last war" and in truth do not "ensure" any stability or safety at all ...
Actually, they can be misleading with these regulations making a lot of people believe in the traditional banks because they are "SAFE & REGULATED".
That's probably to point, see @rpren reply above :)
-> better trust (transparent) code than people
The regulators (US Government, Fed and FDIC) are themselves insolvent.
See my post of today: https://leofinance.io/@apshamilton/why-did-svb-collapse-first-implications-for-btc-gold-and-hbd
Congratulations @sorin.cristescu! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 3250 replies.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts:
Support the HiveBuzz project. Vote for our proposal!