34 min

Trump Announces 2024 Campaign, Crypto Contagion & The FTX Blow Up, Ep. #153 The Capitalist Investor with Mark Tepper

    • Investing

What's going on with the recent crypto meltdown and specifically the FTX exchange? The traditional banking system works in a similar way, lending out assets to make money for themselves. What is to blame? The banks? The exchanges? Regulation? Or is this a culprit of low-interest rates and the changes in behavioral finance?

In the traditional banking system, banks will take customer deposits and use them to invest in other products or services. However, this can be risky if the bank does not have enough liquid assets to meet customer demands for withdrawals. This is what happened with the crypto exchange FTX. The company had leveraged it's customer assets to make other investments, but when the market crashed and customers tried to withdraw their money, FTX was unable to meet these demands. This caused the company to collapse, wiping out billions of dollars in assets.

The FTX crisis was caused by the company's use of client money for risky hedge fund leverage, which left the company unable to repay its debt obligations when clients began asking for their money back. But on top of that, it is absolutely possible that Fraud has occured, but we don't want to jump to conclusions until it is proven.

The person who hacked into FTX's system is now the 35th largest owner of Ethereum in the world. This hack is a reminder that the banking system is vulnerable to attack and that companies need to be careful about over-leveraging themselves.
The Crypto Meltdown: What Really Happened - 0:01:45
The FTX Cryptocurrency Exchange Scandal - 0:03:34
FTX Exchange Under Fire After Client Money Goes Missing - 0:07:17
The FTX hack and its implications for the cryptocurrency industry - 0:08:39
The Aftermath of the Largest Ponzi Scheme in History: The Bernard Madoff Scandal - 0:10:08
The Decentralized Finance Community's Relationship with Regulation - 0:13:32
Inflation: The Good, The Bad, and The Ugly - 0:19:13
The Impact of PPI on the Economy - 0:22:35
The Federal Reserve's Impact on Inflation and the Market - 0:25:19

Excesses Will Change in the Next Two Years - 0:31:00

What's going on with the recent crypto meltdown and specifically the FTX exchange? The traditional banking system works in a similar way, lending out assets to make money for themselves. What is to blame? The banks? The exchanges? Regulation? Or is this a culprit of low-interest rates and the changes in behavioral finance?

In the traditional banking system, banks will take customer deposits and use them to invest in other products or services. However, this can be risky if the bank does not have enough liquid assets to meet customer demands for withdrawals. This is what happened with the crypto exchange FTX. The company had leveraged it's customer assets to make other investments, but when the market crashed and customers tried to withdraw their money, FTX was unable to meet these demands. This caused the company to collapse, wiping out billions of dollars in assets.

The FTX crisis was caused by the company's use of client money for risky hedge fund leverage, which left the company unable to repay its debt obligations when clients began asking for their money back. But on top of that, it is absolutely possible that Fraud has occured, but we don't want to jump to conclusions until it is proven.

The person who hacked into FTX's system is now the 35th largest owner of Ethereum in the world. This hack is a reminder that the banking system is vulnerable to attack and that companies need to be careful about over-leveraging themselves.
The Crypto Meltdown: What Really Happened - 0:01:45
The FTX Cryptocurrency Exchange Scandal - 0:03:34
FTX Exchange Under Fire After Client Money Goes Missing - 0:07:17
The FTX hack and its implications for the cryptocurrency industry - 0:08:39
The Aftermath of the Largest Ponzi Scheme in History: The Bernard Madoff Scandal - 0:10:08
The Decentralized Finance Community's Relationship with Regulation - 0:13:32
Inflation: The Good, The Bad, and The Ugly - 0:19:13
The Impact of PPI on the Economy - 0:22:35
The Federal Reserve's Impact on Inflation and the Market - 0:25:19

Excesses Will Change in the Next Two Years - 0:31:00

34 min