Friday, September 19, 2025

The Daily Market Flux - Your Complete Market Rundown (09/19/2025)

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Here is Your Complete Market Rundown (09/19/2025)

Company News

Nvidia Corporation (NVDA)

Performance Overview

1D Change:  0.15%

5D Change:  -0.73%

News Volume:  266

Unusual Volume Factor:  1x

Nvidia Reshapes AI Chip Landscape with $5B Intel Deal and UK Investments, Sparking Industry-Wide Reactions

Nvidia has made several significant moves in the AI and semiconductor industry, shaking up the landscape and sparking reactions across the sector. The company announced a historic $5 billion investment in rival Intel, acquiring a 4% stake and forming a partnership to co-develop AI and data center products.

Full coverage of $NVDA on MarketFlux.io

Apple Inc. (AAPL)

Performance Overview

1D Change:  3.2%

5D Change:  4.89%

News Volume:  212

Unusual Volume Factor:  2x

Apple's iPhone 17 Launch Draws Global Crowds, Boosts Stock Despite Scratch Concerns

Apple's highly anticipated iPhone 17 series has officially launched globally, drawing massive crowds and long queues at stores worldwide. The launch day saw hundreds of eager customers lining up at flagship stores in Beijing, New York, and other major cities, with Apple CEO Tim Cook personally welcoming shoppers at the Fifth Avenue store in New York City.

Full coverage of $AAPL on MarketFlux.io

Micron Technology, Inc. (MU)

Performance Overview

1D Change:  -3.68%

5D Change:  3.47%

Micron Stock Stumbles on Samsung's HBM3E Win, but Analysts Remain Bullish Ahead of Earnings

Micron Technology's stock has experienced a significant shift in market sentiment today, ending a 12-day winning streak. The company's shares fell after news broke that Samsung had secured Nvidia's qualification for its 12-layer HBM3E chips, giving it an edge in the race for next-generation high-bandwidth memory. This development has raised concerns about Micron's position in the HBM4 market.

Full coverage of $MU on MarketFlux.io

Darden Restaurants, Inc. (DRI)

Performance Overview

1D Change:  -4.14%

5D Change:  -13.1%

Darden Restaurants Stock Tumbles on Earnings Miss, Analysts Adjust Targets Amid Mixed Outlook

Darden Restaurants faced a challenging day as its stock price plummeted 7.7% following missed earnings estimates in Q1. Despite posting a sales beat, profitability concerns led numerous analysts to lower their price targets.

Full coverage of $DRI on MarketFlux.io

Geopolitics Events

Trump Touts Progress on TikTok Deal After Call with Xi, Plans Future Meetings

President Trump announced a productive phone call with Chinese President Xi Jinping, marking a significant development in U.S.-China relations. The conversation covered several crucial topics, including trade, the fentanyl crisis, the Russia-Ukraine conflict, and the much-debated TikTok deal.

House Passes Stopgap Funding Bill Amid Looming Shutdown Threat

The U.S. House of Representatives has passed a stopgap funding bill to avert a government shutdown, sending it to the Senate for consideration. The Republican-led measure aims to fund the government through November 21, providing time for broader budget negotiations.

Trump Set to Impose Hefty Fee on H-1B Visas, Silicon Valley Braces for Impact

President Trump is poised to sign a proclamation overhauling the H-1B visa program. The order will introduce a substantial $100,000 fee for visa applications.

Federal Judge Dismisses Trump's Billion-Dollar Lawsuit Against New York Times, Allows Refiling

A federal judge has struck down Donald Trump's $15 billion defamation lawsuit against the New York Times. The judge cited the lawsuit's failure to meet federal rules requiring a plain statement of claim and its excessive length.

Xi Calls for Stable U.S.-China Relations, Urges Against Trade Restrictions

Chinese President Xi Jinping emphasizes the importance of China-U.S. relations in recent statements. He urges the U.S. to refrain from unilateral trade restrictions and pressures, advocating for an open and fair environment for Chinese companies.

Iran Asserts Diplomatic Independence, Plans High-Level Meetings Amid Tensions

Iran's UN envoy asserts the nation's autonomy in diplomatic engagements, stating, "It will be Iran, not adversaries, who decide with whom and on what basis to engage." The diplomat emphasizes that "the door to diplomacy is not closed" following a UN vote.

Trump Warns of Possible Government Shutdown Amid Budget Dispute

President Trump forecasts a potential government shutdown due to disagreements over the spending bill. The situation could lead to a temporary closure of federal operations.

U.S. Pushes Forward with Massive Arms Sale to Israel Amid Regional Tensions

The Trump administration is pursuing a $6 billion arms sale to Israel, seeking congressional approval. This move comes despite recent tensions following Israel's missile strike on Hamas in Qatar.

Trump's Trade Policies Strain Farmer Loyalty as Global Economy Absorbs Shocks

American farmers are feeling the brunt of Trump's policies as they find themselves caught in a second trade war. This unexpected turn has put their loyalties to the test.

U.S. Negotiates Return to Afghanistan, Eyeing Bagram Air Base for Counterterrorism

The Trump administration is reportedly in talks with the Taliban to re-establish a U.S. military presence in Afghanistan.

Trump Administration Explores Discount Drug Website Concept

Trump administration officials are contemplating the creation of a website to help patients purchase discounted prescription drugs directly from pharmaceutical companies.

Macro Events

Fed Governor Miran Sparks Controversy with Unconventional Views on Inflation and Monetary Policy

Federal Reserve Governor Stephen Miran made headlines today with his controversial statements during a CNBC interview. Miran, who recently joined the Fed, expressed his views on various economic issues, particularly focusing on inflation and monetary policy.

Fed's Kashkari Backs Rate Cuts, Emphasizes Labor Market Risks and Inflation Target Commitment

In a series of statements today, Minneapolis Federal Reserve President Neel Kashkari provided insights into the Fed's recent decision-making and future outlook. Kashkari supported the central bank's decision to lower interest rates this week and projected two additional cuts this year, citing increased risks to the labor market.

BOJ Maintains Interest Rates, Introduces ETF Sales Amid Economic Uncertainty

The Bank of Japan (BOJ) has decided to maintain its current interest rates, keeping the overnight call rate at 0.5%. This decision comes with a notable shift in policy as the BOJ announces plans to start selling Exchange-Traded Funds (ETFs) and J-REITs.

UK Retail Sales Outperform Expectations While German PPI Signals Deflation

UK retail sales in August 2025 surpassed expectations, with overall sales rising 0.5% month-on-month and 0.7% year-on-year. Core retail sales showed even stronger growth, increasing 0.8% month-on-month and 1.2% year-on-year.

EU Unveils Tough New Sanctions Package Against Russia, Targeting Energy Giants and Shadow Fleet

The European Union is intensifying its stance against Russia with a new sanctions package. EU officials, including Dombrovskis and von der Leyen, are calling for increased pressure and endorsement of these measures.

Bank of Japan Holds Steady on Interest Rates Amid Internal Calls for Hike

The Bank of Japan maintains its short-term interest rate target at 0.5%, meeting market expectations. This decision comes despite proposals from two board members to increase the rate to 0.75%.

Fed Signals Shift to Easing Cycle, Pushes for Faster Rate Cuts Amid Economic Uncertainty

Federal Reserve officials are signaling a shift towards an easing cycle, with Fed's Miran pushing for faster rate cuts. The central bank's stance has become increasingly dovish, with Miran stating that monetary policy is "pretty restrictive" and warning of risks if it remains so.

Canadian Retail Sales Slump, Core Sales Disappoint in July

Canada's retail sector faces a downturn as July's core retail sales plummet 1.2%, far below expectations. Overall retail sales drop 0.8%, matching estimates but reversing previous growth trends.

EU Accelerates Ban on Russian LNG Imports, Expands Sanctions

European Commission President Von der Leyen has announced a significant shift in EU energy policy. The bloc proposes to ban Russian LNG imports a year earlier than initially planned, starting from January 2027.

BOJ's ETF Sell-Off Rattles Asian Markets as Global Rally Pauses

The Bank of Japan's decision to sell its massive exchange-traded fund holdings has caused a ripple effect in global markets. This move led to a decline in Asian shares, with the MSCI Asia Pacific Index falling 0.4%. Japanese stocks reversed earlier gains as a result.

Central Banks Navigate Economic Challenges Amid Inflation Concerns and Market Volatility

The Federal Reserve's recent rate cut has sparked discussions about its potential finality for 2025, with concerns of stagflation and a possible U.S. recession by 2026 emerging. Meanwhile, global stock markets faced headwinds as the Bank of Japan's decision to sell its ETF holdings impacted Asian shares negatively.

Technology Events

Intel-Nvidia $5B Deal Shakes Up Semiconductor Landscape, Sparking Industry-Wide Reactions

The semiconductor industry is abuzz with the news of a groundbreaking partnership between Intel and Nvidia. In a surprising move, Nvidia has invested $5 billion for a 4% stake in Intel, sending the latter's stock soaring by nearly 23%. This collaboration aims to co-develop PC and data center products, potentially reshaping the chip landscape.

Oracle and Meta Discuss Landmark $20 Billion AI Cloud Deal

Oracle is in negotiations with Meta for a massive $20 billion AI cloud computing deal.

OpenAI Ventures into Hardware, Poaches Apple Talent for Ambitious Product Line

OpenAI is making bold moves into hardware, reportedly considering glasses, voice recorders, and PIN devices. The AI giant has poached talent from Apple and partnered with iPhone assembler Luxshare for production.

OpenAI's Colossal $100 Billion Investment

OpenAI announces a massive $100 billion investment plan for backup servers.

Neuralink Announces Pioneering Thought-to-Speech Trial, Eyes Future Brain Implants

Elon Musk's Neuralink is set to launch a groundbreaking thought-to-speech trial in October. The company aims to implant its brain device in a healthy person by 2030, marking a significant milestone in neurotechnology.

Tesla Stock Surges on Baird Upgrade, Highlighting AI Leadership

Tesla's stock receives a significant boost as Baird upgrades its rating from Neutral to Outperform. The upgrade reflects growing confidence in Tesla's growth prospects, driven by positive demand trends and operational enhancements.

Healthcare Events

Japan and EU Approve Multiple Groundbreaking Medications Across Various Therapeutic Areas

In a flurry of regulatory approvals, Japan's Ministry of Health, Labour and Welfare has given the green light to several groundbreaking medications. Nuvation Bio's IBTROZI for ROS1-positive lung cancer, Esperion's cholesterol drug NEXLETOL, and Verrica's YCANTH for molluscum contagiosum all received approval. Alvotech secured approval for three new biosimilars, while ARS Pharma's neffy nasal spray for allergic reactions also got the nod.

Healthcare Industry Sees Wave of Innovations and Regulatory Approvals

In a flurry of healthcare industry developments, several companies made significant strides today. LabWare launched Clinical Health Solution 5.06, while Johnson & Johnson received positive evaluations for multiple therapies. Organon secured EU approval for biosimilars, and Lexaria's technology showed promise for GLP-1 drug delivery to the brain.

CDC Panel Delays Decision on Newborn Hepatitis B Vaccination

CDC panel postpones voting on newborn hepatitis B shots. US vaccine advisers set to resume meeting, with hepatitis B and COVID votes on the agenda.

Pharmaceutical Breakthroughs: Enhanced Drug Delivery and Cancer Treatment Successes Shake Up Industry

Lexaria's DehydraTECH technology demonstrates improved brain delivery of semaglutide, a GLP-1 drug. This advancement could have significant implications for drug efficacy.

CDC Panel Overhauls Vaccine Recommendations, Ending Universal COVID Shot Advice

A CDC panel, newly appointed by Health Secretary Robert F. Kennedy Jr., has voted to end the universal recommendation for COVID-19 vaccinations across all age groups. This decision marks a significant shift in vaccine policy.

Corporate Actions Events

Musk's xAI Secures Massive Funding, Skyrockets to $200 Billion Valuation

Elon Musk's artificial intelligence company, xAI, has successfully raised $10 billion in funding, achieving a staggering valuation of $200 billion. This development, reported by CNBC citing sources, catapults xAI into the ranks of the world's most valuable startups.

Crypto Firm BitGo Seeks NYSE Listing with IPO Filing

Crypto custody firm BitGo has filed for an Initial Public Offering (IPO) on the New York Stock Exchange.

Travel Tech Firm Navan Files for US IPO, Plans Nasdaq Listing

Navan, a business travel and expense management software company, has publicly filed for a US IPO.

Brighthouse Financial Stock Surges on Aquarian's Potential Takeover Bid

Brighthouse Financial shares soar 30% following reports of Aquarian's potential acquisition bid.

Paramount Skydance Eyes Warner Bros. Discovery Acquisition with Multibillion-Dollar Bid

Paramount Skydance is considering a bid for Warner Bros. Discovery, with sources indicating a potential offer range of $22 to $24 per share.

Legal Events

SEC Chair Discusses Potential Shift to Semiannual Reporting with Trump

SEC Chair Atkins reveals discussions with President Trump about shifting from quarterly to semiannual reporting. In a CNBC interview, Atkins emphasizes that now is an opportune time to reassess company reporting practices.

Crypto Events

Crypto Firm BitGo Seeks NYSE Listing with IPO Filing

Crypto custody firm BitGo has filed for an Initial Public Offering (IPO) on the New York Stock Exchange.

ZOOZ Power Stock Skyrockets After Shareholders Greenlight Bitcoin Strategy

ZOOZ Power shareholders approve a $180 million private placement and Bitcoin treasury reserve strategy. The company's stock surges over 250% following the announcement.

Explore More Headlines at www.marketflux.io

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https://www.reddit.com/gallery/1nlgc4m

Thursday, September 18, 2025

The fate of Bitcoin: do you see a (two) head and shoulders in BITX?

https://www.reddit.com/gallery/1nklpso

🏛️→🌐 Reminder for Edeneum Salon #3: Political Philosophy & Network States

https://i.redd.it/6prbnk00hzpf1.png

🏛️→🌐 Reminder for Edeneum Salon #3: Political Philosophy & Network States

After two awesome sessions, we are coming back this Friday (tomorrow) on September 19th, 2025 with our 3rd Edeneum salon.

If you haven’t signed up, you can register here → Edeneum #003.

----------

What is Edeneum?

Edeneum provides classical wisdom for network societies, founders and the new-age citizen.

Our work encompasses three essential components:

  1. Salons for discussing ancient wisdom as it applies to startup societies
  2. A comprehensive codex drawing from the greatest philosophical, historical, and scientific works on governance and human excellence
  3. Edeneum Accademy, which trains future Network State founders and citizens in the art of governance.

Background

I have participated in The Network State community since 2021. During the COVID pandemic, Balaji Srinivasan delivered a series of virtual lectures on creating new countries in the cloud—a concept that may sound fantastical but proves surprisingly practical.

As traditional Western institutions deteriorate—signaled by economic upheaval, governmental distrust, and global conflicts—we require new approaches to governance and self-governance.

Consider the internet's three great phases of development. First came global social connectivity through platforms like Facebook, Instagram, Reddit, and X, which built the infrastructure for digital community formation. Second came disruptive commerce through Uber, Airbnb, and Shopify, revolutionizing economic exchange. Third came decentralized currency through Bitcoin, creating new monetary systems without intermediaries.

We have thus established social communities that unite like-minded individuals, commercial networks previously unimaginable, and novel methods of monetary exchange—all native to the internet.

What about governments?

Here we encounter Balaji's ingenious concept of the Network State:

The network state thus begins with moral foundations, which naturally leads us to religion, philosophy, and the humanities.

Rather than reinventing governance from scratch, why not apply 2,500 years of accumulated wisdom—historical experience, political philosophy, and practical knowledge—to startup societies and network states?

This is precisely Edeneum's mission.

Our Approach: We extract frameworks from Aristotle's Athenian Constitution, Maimonides' teachings on human perfection, Machiavelli's principles of statecraft, and apply them to Network States.

What we're building:

  • The Academy: Education for both princes and princesses
  • Workshops for crafting founding documents, constitutions, and policies
  • Templates and resources for legal, judicial, and executive institutions
  • In-depth learning sessions on classical works

If you aspire to found a network state or consider yourself a curious, internet-native citizen, we invite you to join our community.

Visit our Luma Calendar for upcoming events, or find us featured on the official Network School Calendar. You may also subscribe to our newsletter for regular updates.


The Non-Reaction: Why Crypto Yawned at the Fed's Big Rate Cut

In a telling sign of market maturity, major cryptocurrencies showed remarkably little reaction to the Federal Reserve's first rate cut since December. Bitcoin barely budged from its $115,000-$116,000 range when the announcement hit, while Ether experienced only modest volatility between $4,430 and $4,620.

The muted response wasn't accidental—analysts widely agree the 25 basis point cut was already "baked in" with over 90% probability priced by markets. This represents a significant evolution from crypto's early days when Fed decisions typically triggered violent swings.

Several key insights emerged from analysts:
• "Liquidity is back on the table" - potentially positive for risk assets
• Crypto remains "addicted to Fed signals" despite its decentralized ethos
• Innovation, not macro policy, remains the long-term driver

The real story isn't the cut itself, but how efficiently crypto markets anticipated and digested the news. This level of sophistication suggests institutional participation is changing how digital assets respond to traditional financial events.

Sometimes the most significant market developments are the ones that don't happen.

Always do your own research. For the full context, read the original article!

Source: Forbes.com
Writer: Charles Lloyd Bovaird II
Narrator: RippleTalk


Wednesday, September 17, 2025

On the Benzian Prophecy of Tether

Consider these sentiments about the effects of tether on the USD price of bitcoin between Mike Benz and Preston Pysh (https://x.com/MikeBenzCyber/status/1880619137124204972):

Benz: What would happen to the price of bitcoin if tether died tomorrow?

Preston Pysh: …in the short term if liquidity dries up bitcoin gets punished, we have seen this over and over again, but they can’t let that deflation rip through the economy or else everyone’s living in tent city.

In this writing we will consider The Paradox of Private Versus Monopolistic Perspectives with regard to the rules and framework that tether exists in and the effects such have on tether and the effects tether has, or might have, on the global financial system.

On The Comparability of Ruritania and FTX

Carolineu/carolinecapital u/cz_binance if you're looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22! ~https://x.com/carolinecapital/status/1589287457975304193

In my essay Hal Finney’s Theory of Bitcoin Backed Banks I describe the concept of “proto-digital banks” using crypto-exchanges as an example of such newly rising technology. This is a phenomenon comparable to how private currencies arise in Ruritania (a fictional device/realm used in George Selgin’s work the Theory of Free Banking) in order to facilitate efficiencies that the base layer currency cannot accommodate:

Under Ruritania’s pure commodity-money regime traders who frequently undertake large or distant exchanges find it convenient to keep some of their coin (and bullion) with foreign-exchange brokers who can then settle debts by means of less costly ledger-account transfers. Money-transfer services also develop in connection with deposits initially made, not for the purpose of trade, but for safekeeping. Wealthy Ruritanians who are not active in commerce begin placing temporarily idle sums of commodity money in the strongboxes of bill brokers, moneychangers, scriveners, goldsmiths, mintmasters, and other tradespeople accustomed to having and protecting valuable property and with a reputation for trustworthiness. Coin and bullion thus lodged for safekeeping must at first be physically withdrawn by its owners for making payments. These payments may sometimes result in the redeposit of coin in the same vault from which it was withdrawn. This is especially likely in exchanges involving money changers and bill brokers. Such being the case, it is possible for more payments to be arranged, without any actual withdrawal of money, at the sight of the vault, or better still by simply notifying the vault’s custodian to make a transfer in his books.

Because of the lack of a “coercive monopoly” (Ayn Rand Capitalism: The Unknown Ideal) on currency supply (ie a central bank) it is argued by Selgin (and referenced by Hal Finney in regard to the effects and evolution of bitcoin on our global financial system) that currency competition would ensue and force out mismanaged private currencies:

During that period, banks’ sought to bankrupt their rivals by “note dueling”-aggressively buying large amounts of their rival’s notes and presenting them for redemption all at once. For a bank to stay solvent during such raids it has to keep substantial reserves, so that its contribution to the process of fiduciary substitution is small.

This phenomenon is how FTX became insolvent:

Sam Bankman-Fried and Zixiao “Gary” Wang)[23] founded FTX in May 2019.[24] FTX began within Alameda Research, a trading firm founded by Bankman-Fried, Caroline Ellison, and other former employees of Jane Street in 2017, in Berkeley, California.[5][25][26] FTX is an abbreviation of “Futures Exchange”.[5] Changpeng Zhao of Binance purchased a 20% stake in FTX for approximately $100 million, six months after Bankman-Fried and Wang started the firm.[27]

Several months after Bloomberg’s initial report on the relationship between the two firms, on November 2, 2022, CoinDesk reported that a significant portion of Alameda Research’s assets were held in FTT, the exchange token issued by FTX. It said that there were $5.1 billion worth of FTT tokens in circulation, and that Alameda’s balance sheet held $3.66 billion of “unlocked FTT”, $2.16 billion of “FTT collateral”, and $292 million of “locked FTT”.[17] In the weeks immediately preceding the publication of the story by CoinDesk, Bankman-Fried was characterized by anonymous sources cited by Bloomberg as “desperately” attempting to raise money for FTX.[55] Additionally, Bankman-Fried had been publicly “dueling” with Changpeng Zhao on Twitter in the months preceding the CoinDesk article, in part due to disagreements stemming from their differing views on the regulation of cryptocurrency.[56]

Several days after the publication of the CoinDesk article, on November 6, Binance CEO Changpeng Zhao said on Twitter that his firm intended to sell all its holdings of FTT.[57] Binance had received FTT from FTX in 2021 during a transaction in which FTX bought back Binance’s equity stake in FTX.[58] Zhao cited “recent revelations that came to light” as the motivation for selling FTT.[58] Bloomberg and TechCrunch reported that any sale by Binance would likely have an outsized impact on FTT’s price, given the token’s low trading volume.[59][60] The announcement by Zhao of the pending sale and disputes between Zhao and Bankman-Fried on Twitter led to a decline in the price of FTT and other cryptocurrencies,[61] resulting in a three-day depositor sell-off, like a bank run, of an estimated $6 billion that sent FTX into crisis.[62] On November 8, Zhao announced that Binance had entered into a non-binding agreement to purchase FTX due to what he referred to as a “liquidity crisis” at FTX.[63][64] ~ wiki FTX

ETFs as Shadow Banks With Regard to the Great Recession of 2008

Consider the “tide” of the “Great Recession” of 2008 as caused by the “subprime mortgage” crisis:

The crisis exacerbated the Great Recession, a global recession that began in mid-2007.[10][11][12][13][14] It was also followed by the euro area crisis, which began with the start of the Greek government-debt crisis in late 2009, and the 2008–2011 Icelandic financial crisis, which involved the bank failure of all three of the major banks in Iceland and, relative to the size of its economy, was the largest economic collapse suffered by any country in history.[15] It was among the five worst financial crises the world had experienced and led to a loss of more than $2 trillion from the global economy.[16][17]

Lack of investor confidence in bank solvency and declines in credit availability led to plummeting stock and commodity prices in late 2008 and early 2009.[26] The crisis rapidly spread into a global economic shock, resulting in several bank failures.[27] Economies worldwide slowed during this period since credit tightened and international trade declined.[28] ~ wiki 2008 financial crisis

Notice the key to this phenomenon is the lack of investor confidence in bank solvency which thus would also include the ability of the “grand pardoners” to bail such banks out.

Here want want to consider the role of ETFs as “shadow banks” with regard to the Great Recession as explained in Joseph Wang’s Central Banking 101:

An ETF is shadow bank because…while its shares can be sold any time the market is open, the assets the ETF holds may not be as liquid.

In principle, the redemption structure for ETFs make them less vulnerable to runs because a redemption of an ETF share yields a basket of securities, so the ETF itself is not subject to forced selling of its underlying assets.

However, should an institutional investor try to arbitrate the difference by redeeming its shares for securities and then selling the underlying securities, then that could lead to a cycle of larger downward price moves that could lead to more redemptions.

In the 2020 COVID-19 panic, investors sold ETF shares so aggressively that many ETFs were trading significantly below fund asset values.

Institutional investors were having trouble arbitraging the differences because market conditions were so poor that even if they could redeem their ETF shares for the underlying securities, they could not sell them: there were no buyers for the securities

And now consider Wang’s interpretation of the causes of the Great Recession:

The basic business model of a shadow bank is to use shorter-term loans to invest in longer-dated assets. This mismatch creates an opportunity for profit as longer-term interest rates are usually higher than shorter-interest rates. The shadow bank may also be earning a risk premium by investing in riskier assets. This bank-like business model also makes shadow banks vulnerable to bank runs when their investors refuse to renew their loans.

Without access to the Fed as lender of last resort, shadow banks may have to sell assets to meet investor withdrawals. During a panic, they would have to sell assets at large discounts, potentially incurring large losses.

The 2008 Financial Crisis and the 2020 COVID-19 panic were largely due to runs of the shadow banking system.

The KEY point here is that Wang ascribes SHADOW BANKS as being the underlying cause of the crisis AND BECAUSE they are out of reach of the “lender of last resort” aka the FED.

On the Comparability Between the Tether Phenomenon, the FTX Implosion, and the 2008 Global Financial Crisis

Benz: What would happen to the price of bitcoin if tether died tomorrow?

Here Benz speaks of a hypothetical where tether simply ceases to exist as if the monetary units disappear from the “M” supply of USD. This would be deflationary with regard to monetary inflation (and thus price inflation) causing the value of USD to INCREASE and the exchange price for bitcoin to DECREASE (ie causing the price of bitcoin in USD to decrease).

Prysh explains it in terms of short-term liquidity, “ …in the short term if liquidity dries up bitcoin gets punished, we have seen this over and over again, but they can’t let that deflation rip through the economy or else everyone’s living in tent city.”

But Prysh’s use of the word “deflation” here is in regard to credit contraction.

In what world or universe, however, could or would tether simply “disappear”?

Not ours.

HOWEVER it COULD be that the DEMAND for tether disappears overnight especially in the same regard that demand for FTT tokens disappeared in an instant (tweet!). And if tether serves the shadow banking market then we should (obviously) expect that they are linked to offshore credit creation markets (unchecked leverage!) that is also completely out of the regulatory purview of the “the grand pardoner” of those units (aka the fed).

In this scenario it wouldn’t be a credit contractionary event but a seemingly infinite velocity event of the USD and this would cause a hyper increase of the exchange price of bitcoin with regard to USD-seemingly the opposite of the Benzian prophecy.

All depending on who or what is at the other end of tether (demand).