Bloomberg reported:
“Sam Bankman-Fried is the new John Pierpont Morgan -- he is bailing out cryptocurrency markets the way the original J.P. Morgan did after the crisis of 1907,” Anthony Scaramucci, founder of SkyBridge Capital, said in an interview, referring to that year’s banking panic, which led to the creation of the Federal Reserve System.
“It doesn’t take a lot of capital right now to support prices and failing lenders, and there are a lot of players incentivized to ensure this industry doesn’t fail.”
One of those players is consummate Washington insider David Rubenstein, co-founder of The Carlyle Group. Rubenstein's Declaration Partners has a stake in crypto focused Paxos.
The latest financing provided by Bankman-Fried is “not unlike private equity shops that will invest more capital into portfolio companies amid distress -- sometimes it’s enough, sometimes not,” said Noel Hebert, director of credit research at Bloomberg Intelligence. “Intra-crypto industry players are among the only ones with an incentive to lend here.”
Microstrategy CEO Michael Saylor pleaded for government intervention to stem the cryptocurrency crisis:
The world’s largest public holder of Bitcoin called on government regulators to finally tackle a laundry list of risky, immature crypto industry practices, or “parade of horribles,” that are unfairly weighing on the price of its asset.No Bull's George Noble said that distress will undo the greed and leverage boys who grossly overpaid for affiliates and will be ravaged by markdowns for years to come.
The fact of the matter is the Central Banks of the world completely screwed it up. They kept their foot on the accelerator.... I think this whole bullshit experiment the last umpteen years of QE and all this nonsense is all it's done is drive up financial asset prices. It's increased the inequality of wealth in this country. It's been horrible from a society standpoint this hyper financialization of the economy by the banksters.. It's been disastrous.The only thing it's done is line the pockets of private equity and goldman sachs. Enough of this already....I think the market is going to fix it, the market is fixing it. I think private equity is dead.
