This is breaking news. I included it as an update to last week’s ramble about Silvergate, but this deserves immediate mention and an irresistible headline.
Silvergate, the main real bank supporting the fake foundation of bitcoin, was collapsing. Earlier today it tried to imitate Goldman, begging FDIC for a bailout. Now FDIC has told Silvergate to FUCK OFF, and Silvergate is immediately closing down. It’s not playing the usual “pause” or “temporary technical glitch” games. Just shutting the doors and turning off the lights.
We are definitely in a new and FAR BETTER economic world now. The central banks have stopped counterfeiting and the regulators have started regulating. Real capitalism has a fighting chance now. Real industry is starting to reshore, though more slowly and reluctantly than the shutdown of fake shit.
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Rehashing the earlier item: The story of Silvergate is a genuine tragedy in the literary sense. Silvergate was a real savings bank for 40 years, surviving several booms and busts with old-fashioned banking methods. Solicit deposits, retail the interest of safe bonds to the depositors. Silvergate sacrificed their integrity and their existence by rushing into the brazenly obvious fraud of bitcoin.
The tragedy is that Silvergate sacrificed at the exact moment when ZIRP ended, the exact moment when an old-fashioned bond retailer bank would become far more profitable and attractive to customers.
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Update 3/12: Now another evil bank has failed. The demons are screeching for a bailout again, but the government is AMAZINGLY staying the course and refusing to bail. Instead, they’re seeking a buyout by other financial demons, which is the PROPER and NORMAL way to handle a bank failure. When the banking guild handles its own problems, the other banks LEARN A LESSON and help to PAY for the lesson. When government pays for the mistakes, nobody learns.
Polistra's Mill 