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Monteluna
@monteluna
My big brained theory is the combination of: - crypto being marshalled in - the market roiling in high interest rates - the US having high junk debt loads with student loans/cars/commercial - Paul Atkins being blessed into the SEC, who was one of the main characters during the 2008 crash with mortgage backed securities means this administration is basically planning to roll all this junk debt into a new type of digital security and jumble it into the stablecoin bill. It would effectively offload it to offshore shadow banks where default risk is held by foreign stablecoin users.
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Monteluna
@monteluna
I mean this theory seriously in a sense that I believe Trump, Bessent, Lutnick, Powell, and the Reps in the House Financial Services committee as well as Jamie Dimon and the bank heads are sitting in meetings basically arguing how they're going to offload all this stuff onto Tether, Circle, and the likes.
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Zack Guzman 🎩
@zguz
That would be wild! But also explain why Republicans and Dems went so hard over potential stablecoin bailouts Problem I now realize with the theory is that most debt is longer term than what stables can hold https://www.coinage.media/s4/tethers-paolo-ardoino-on-stablecoins-becoming-key-to-trumps-tariff-strategy
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Monteluna
@monteluna
They have to bail out the system. Its clear student loans will never be repaid, car loans are in utter shambles, and commercial real estate in busted rust belt towns riddled with fentanyl are worth zero. Mark to market the issue is every commercial bank, Fannie/Freddie, is bankrupt. No one is going to buy these junk loans because every other bank is also bankrupt. If I was in charge, I'm calling Paul Atkins explicitly to package these junk bonds up into the America First 100 year bond, tell G7 allies they need to buy it to be in our good graces, and get shadow banks/stablecoins to hold it.
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