Macquarie Lashes Out At Dimon: “Modern Finance”, Not Bitcoin, Is The Real Fraud
by Tyler Durden
ZeroHedge.com
Sep 28, 2017
While the establishment including various central banks, China (which has a “modest” capital flight problem), commercial banks such as JPM and especially its CEO Jamie Dimon who called Bitcoin a ‘fraud” similar to the tulip bubble of the 17th century, have come out as harsh opponents of cryptocurrencies, some notable “minority oppinions” have emerged in recent days, such as Morgan Stanley’s CEO, James Gorman, who yesterday suggested that Dimon is wrong and that “Bitcoin is certainly more than a fad… the concept of an anonymous currency is an interesting concept.”
However, the harshest criticism of Jamie Dimon’s takedown of bitcoin came from Macquarie’s head of AsiaPac equity strategy, Viktor Shvets who this morning said that it’s not bitcoin that’s the bubble- or fraud – but the entire modern financial system, which is 4x-5x bigger than the underlying economies, to wit:
When a number of financial executives recently described Bitcoin as a “fraud” akin to the tulip mania, it exhibited their apparent lack of appreciation of fundamental shifts that are altering global monetary and financial systems. If one describes Bitcoin as a fraud, how would one describe a ‘financial cloud’ that is at least 4x-5x larger than the underlying economies? It is unlikely that US$400 trillion+ of financial instruments circulating around the world would ever be repaid and most are now backed by assets that are already either worthless or are diminishing in value. How does one describe rates and the yield curve that are either directly determined by CBs (BoJ or PBoC) or heavily influenced by them (Fed or ECB)?
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