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Ep. 2307 The Real Story of Bank Regulation

The Tom Woods Show

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Crypto Deposits: The Fuel for Lending

The regulators have really officially and unofficially over the last few years, told banks, you may not lend on crypto deposits. And that's probably a wise decision because these are volatile deposits that can really leave at any time. But some specialized, highly growing financial institutions in the space who are not entirely educated enough to be hedging the correct way when they're putting money from crypto or high growth deposits into these financial instruments for long-term value. So we all know over the long term that interest rates were going to go up, but that means that those instruments go down in value as the interest rates go up. It's the executives' fault here; even if they didn't hedge

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