On May 03 2022 08:18 BlackJack wrote: Series I Bonds up to 9.62%. Can only buy up to $10,000 per calendar year. Apparently can get another $5,000 if you use your federal tax return, something I wish I knew a month ago.
You can abuse the gift loophole to buy more. Bought 25k but I’m probably going to up that substantially.
Can you elaborate on this? I googled this and according to an article on seekingalpha you can use the gift option to lock in the interest rate while it is high and deliver when it goes down but you can't actually exceed the $10k per SSN per year
Apparently accepting gifts and buying for yourself count against annual limit. Buying gifts for others who can’t accept them yet leaves them in limbo earning interest. Then they accept the gift in a future year against their limit for that year.
I see. So as long as it's earning interest while waiting to be gifted and you're going to receive it in a subsequent year it's functionally the same as buying more now. The main downside I assume being that you lose the liquidity until the gift is delivered and interest rates may go down however unlikely. Interesting, thanks. Now I'll have to do some research because I have no idea what the tax implications of large gifts are.
The Federal Reserve raised interest rates by the steepest increment since 2000 and decided to start shrinking its massive balance sheet, deploying the most aggressive tightening of monetary policy in decades to control soaring inflation.
The U.S. central bank’s policy-making Federal Open Market Committee on Wednesday voted unanimously to increase the benchmark rate by a half percentage point. The Fed will begin allowing its holdings of Treasuries and mortgage-backed securities to roll off in June at an initial combined monthly pace of $47.5 billion, stepping up over three months to $95 billion.
Would be nice if they did this with alternatives already in place since the everyday consumer will and is paying the price for the EUs action.Food and fuel are increasing in price very sharply.
How exactly did Coinbase go from wildly profitable to talking about bankruptcy? Guessing they either have assets tied to the value of shitcoin or got screwed by volatility, but maybe someone knows what actually happened.
On May 12 2022 00:32 LegalLord wrote: How exactly did Coinbase go from wildly profitable to talking about bankruptcy? Guessing they either have assets tied to the value of shitcoin or got screwed by volatility, but maybe someone knows what actually happened.
Probably same as any other exchange. Low interest debt by central bank used to avoid selling the assets they hold or bid them higher.
On May 12 2022 01:01 Uldridge wrote: But don't exhanges thrives off of high volatility? More trades = more fee, no?
Volume gets you more fees perhaps, but severe volatility means that holding assets is risky. Robinhood had to put a whole lot of money up for collateral when the price of GME was highly volatile, and when they had to start borrowing that money that became a huge problem. And it's one thing when that's just for clearing buy/sells that someone did, but even worse when you actually own the assets - which to a large extent the trading platform does if they do something like fractional shitcoins where the platform owns the actual coin and the users pay money to have a fraction of it.
I could see some scheme where playing with the finances of crypto makes for a high-risk play where volatility could turn into massive losses (or massive gains for that matter). But maybe someone actually knows what games Coinbase was playing. I'm guessing that moving between huge profits and sizeable losses means they were doing some sort of gamble or other with crypto, but I'm only speculating.
On May 12 2022 00:32 LegalLord wrote: How exactly did Coinbase go from wildly profitable to talking about bankruptcy? Guessing they either have assets tied to the value of shitcoin or got screwed by volatility, but maybe someone knows what actually happened.
They let people leverage their crypto for margin trading right? I suspect we'll see this in a lot of areas now that the market has stopped only going up. There was a reddit post the other day about how someone made an all cash offer on a house by leveraging their unvested RSUs. The price took a tumble and they're drowning now. It is insane how much risk tolerance some people have, but when you live in a world where numbers only go up I guess it makes sense.
On May 12 2022 01:01 Uldridge wrote: But don't exhanges thrives off of high volatility? More trades = more fee, no?
Volume gets you more fees perhaps, but severe volatility means that holding assets is risky. Robinhood had to put a whole lot of money up for collateral when the price of GME was highly volatile, and when they had to start borrowing that money that became a huge problem. And it's one thing when that's just for clearing buy/sells that someone did, but even worse when you actually own the assets - which to a large extent the trading platform does if they do something like fractional shitcoins where the platform owns the actual coin and the users pay money to have a fraction of it.
I could see some scheme where playing with the finances of crypto makes for a high-risk play where volatility could turn into massive losses (or massive gains for that matter). But maybe someone actually knows what games Coinbase was playing. I'm guessing that moving between huge profits and sizeable losses means they were doing some sort of gamble or other with crypto, but I'm only speculating.
I have no idea what coinbase was doing but if it's legal I'd not be surprised to find out they tried something like Zillow. Really I'd probably be more be surprised to find out they weren't using the data they collect from users to speculate.
Wow I have a friend who is super bullish on NFTs and Crypto. He got in pretty big during coinbase’s IPO. I realized he doesn’t talk much about his portfolio anymore. Tbf, so have I lol. I all but shut off notifications and maybe check on my positions 1-2 times a week.
On May 12 2022 01:01 Uldridge wrote: Probably ties with LUNA and UST I assume. But don't exhanges thrives off of high volatility? More trades = more fee, no?
More volatility does not always mean more trades. In illiquid markets you can have large price changes due to the difficulty of matching buyers and sellers. From what I've read there's a lot less trading from retail investors and coinbase relies almost completely on trading fees.
The backers of the TerraUSD algorithmic stablecoin are trying to raise about $1.5 billion to shore up the token after it crashed from its dollar peg, according to the founder of a firm that was approached about the deal.
Investors in the proposed deal will be able to buy the Luna coin at a 50% discount to the spot price, Kumar Gaurav, the founder and chief executive of crypto liquidity provider Cashaa, said in an interview. Luna, the token that’s part of the peg mechanism for TerraUSD, has tumbled about 95% in the past 24 hours.
The plunge in TerraUSD, or UST, has reignited the debate over algorithmic stablecoins, a subject of controversy within the crypto industry. It crashed to around 45 cents on Wednesday, days after breaking an intended 1-to-1 peg to the dollar, as confidence in the project evaporated.
Cashaa is among prospective investors that received the proposal from the Luna Foundation Guard, Gaurav said, adding that his firm won’t participate. Investors will be subject to a one-year lockup and a monthly “linear vest” over 12 months, he added. The LFG didn’t immediately respond to requests for comment.
EPT![[image loading]](https://pbs.twimg.com/media/FSHBWR7WQAAit2M?format=png&name=small)
![[image loading]](https://preview.redd.it/quj1soql9zx81.png?width=950&auto=webp&s=1413c40ada08af68ebbe458afe8f38f0b4a0455a)
