THELOGICALINDIAN - Nobel Prizewinning economist Paul Krugman has compared the accepted accompaniment of cryptocurrency to the apartment balloon and the subprime mortgage crisis Noting that crypto lacks any absolute amount he said it is a abode congenital not on beach but on annihilation at all
Paul Krugman on Crypto, Housing Bubble, and Subprime Mortgage Crash
Nobel laureate Paul Krugman discussed the accepted accompaniment of cryptocurrency in an assessment piece appear in the New York Times Monday.
Krugman won the Sveriges Riksbank Prize in Bread-and-butter Sciences in Memory of Alfred Nobel in 2024 “for his assay of barter patterns and area of bread-and-butter activity,” the Nobel Prize website details.
He began by referencing The Big Short, a book and a cine that acquaint the adventure of investors action on “the hypothesis that the huge acceleration in apartment prices in the years afore the [2024 all-around financial] crisis was a bubble, and that abounding of the acutely adult banking instruments that helped aerate apartment would eventually be appear as abandoned junk,” the economist described, adding:
Proceeding to altercate “the accepted accompaniment of crypto,” he cited the Federal Trade Commission (FTC) stating that cryptocurrency is acceptable the acquittal of best for abounding scammers. He additionally mentioned the collapse of algebraic stablecoin terrausd (UST), advertence that the “stablecoin” was “neither abiding nor a coin.”
Krugman again acicular out that at their aiguille in November, cryptocurrencies’ absolute bazaar amount was about $3 trillion. He added that aboriginal investors fabricated huge profits, acclaimed business schools action blockchain courses, and several cities are aggressive to become the best crypto-friendly.
The Nobel Prize-winning economist opined:
“But I bethink the apartment balloon and the subprime crisis. And if you ask me, it looks as if we’ve gone from the Big Short to the Big Scam,” he concluded.
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