Hi Amadeo,
You are covering as space whose consequences an evolution are somewhat breathtaking. I was an analyst and global fund manager for a very long time.I was worried that this new space evolving from the blockchain protocole would be censured in some way by governments . But as Paypal and Wall Street are getting involved in the game, I guess that probability is far lower. Listening to you and thanks to the excellent reading material you provide I am getting a glimpse of the possibilities , but less of the risk, except it the base of the building blocks stumble.
It’s like a building , how much of an earthquake can it stand. As the technology and the protocoles get better the sounder it will get.
Two questions :
I believe CDS’s are like the pest . A bond manager is paid to asses the risk of the bond he buy’s .,so if he is incompetent he should not be there. In the mean time , as far as I know , despite many fund managers asking for it, no regulatory exchange exists. So the question is : could one write a protocole that would not allow the short sellers to kill the beast : I would believe so. I am sure that many are already looking at the question.
2) If I where a small hedge fund and had some descent tech , I would create an algorithm that would switch me to the highest interest rate payer on a momentum basis , which would create distortion to volume and price. Does this make sense ?
I hope all si well in the Philippines .
Best regards from Switzerland
Alex