Monday, April 11, 2022

Rubenstein Rubs Crypto Lamp

Billionaire David Rubenstein said the crypto "genie is out of the bottle."  Rubenstein said crypto was "here to stay" in May 2021 after investing in Paxos through his family office in 2020.  The Carlyle Group co-founder's three wishes are for more money, more money and more money.  

Rubenstein believes the U.S. government and/or Federal Reserve Bank will offer more stimulus.

"Many people are going to look at whether the US economy is now going to be needing some stimulus. It was growing back after COVID, but now it's going to be stalling a little bit because of Russia." 
Heaven forbid Carlyle affiliates refinance their debt at higher interest rates.  

"The Fed is doing the right thing, but as we do begin to increase interest rates, it will slow down the economy. And when you have inflation and high interest rates, that's not a good combination."

The greed and leverage boys have one of their own as Fed Chair.  Jay Powell will continue to look out after his own.  

"Russia-Ukraine is something that's top of mind for me, because as the global economy was beginning to recover from COVID, we now find ourselves in a free-fall a bit, in terms of the global economy."

Carlyle has Admiral James Stavridis as Vice Chair Global Affairs to read the PEU tea leaves.  David Petreaus does the same for KKR.  Both have been on the airwaves discussing the war.  Neither mentioned their private equity underwriter (PEU) ties as they advised the American public.  

David Rubenstein knows about releasing genie's into the world, as private equity may be the most widespread and nearly invisible group influencing the U.S. government.  The PEU boys always get their wish.

Update 4-13-22:  Blackrock is now a strategic partner with crypto payments company Circle, which applied to be a national bank.  FDIC backing, Treasury window?

 Update 5-11-22:  Fortune reported:

In the event the crypto exchange goes bankrupt, Coinbase says, its users might lose all the cryptocurrency stored in their accounts too.

Update 5-18-22: The cryptocurrency unwind came quickly after financial whores Bill Clinton and Tony Blair were in the Bahamas pushing crypto. 

If you don’t see that the crypto “industry” has become just as blindingly corrupt, just as oozingly fatuous, just as profoundly captured by the Nudging Oligarchy as the traditional financial services industry it was supposed to replace … well, you’re just not paying attention.

Update 5-27-22  Paxos received a federal trust charter from the Office of the Comptroller of the Currency.  Paxos National Trust entity is a federally regulated entity offering custody services, stablecoin management, payment, exchange and other services.  It is different from New York Department of Financial Services-chartered Paxos Trust Co.

Update 7-10-22:   Wolf Street writes:

Stuff blows up because of leverage and cascades through the crypto space because everything’s interconnected.

Update 7-11-22:  Crypto hedge fund Three Arrows Capital founders are AWOL.  Creditors asked a court to "subpoena the founders and have them provide a list of company assets including wallets it controls, bank accounts, digital assets in its possessions, derivatives contracts, securities, accounts receivables, and all company records."

Update 8-2-22:  FDIC insured banks ran with the crypto devils and may go under as a result.  How this is remotely OK is a question one should ask David Rubenstein and his former employee Jerome Powell.

Update 10-1-22:  Rubenstein remains a crypto promoter.