The Market Ticker
Commentary on The Capital Markets- Category [Market Musings]
2017-12-18 12:14 by Karl Denninger
in Market Musings , 182 references
[Comments enabled]  

What's going on at this point is utterly outrageous.

Everyone says "oh yeah, it's all going good and it's based on fundamentals."

No it's not.

Look at "Longfin" (LFIN) which is up some 500% today (who knows how long that will hold up) on a deal announced the other day in which it claimed to have acquired a "blockchain-based solutions provider."

May I quote?

Ziddu Coin is a smart contract that enables SME’s, processors, manufacturers, importers and exporters using cryptocurrencies across continents. Ziddu Coins are loosely pegged to Ethereum and Bitcoin. The importers/exporters convert offered Ziddu coins into Ethereum or Bitcoin and use the proceeds for their working capital needs. At the end of the contract, importers/exporters will realize their proceeds and pay back their funds through cryptocurrencies only. Depending upon the risk profile of the counterparty, the interest will vary from 12% to 48%.

Oh really?  Only 12-48%?  What happens when the so-called "currency" doubles during the time the loan is out?

Then the "interest rate" is really 124-196%, isn't it?

What happens if the "currency" goes up in price by a factor of five?

Now tell me exactly how many such "incidents" the borrower will survive?

The answer is zero.

This sort of **** is outrageous at a level that vastly outstrips the crazy claims of the 1990's tech explosion.  There people were "only" claiming double combined global GDP between all the IPOs on their "reasonable" forward projections.

This crap makes that look like a Girl Scout cookie sale and yet you have a microcap Nasdaq OTC company that literally showed up on Thursday at about $5/share hit over $140 this morning.

All of it on the back of a "fancy-pants embedded coin" scheme pegged to a parabolic rocket-shot which they claim will be the basis for settlement of trade across national boundaries.

Yeah, the market's rise is "organic" and "based on fundamentals."


It is all infused with this crap, from the largest company to the smallest.

But this time it's different....

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