{"id":64956,"date":"2022-06-08T09:03:07","date_gmt":"2022-06-08T09:03:07","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=64956"},"modified":"2022-06-08T09:03:07","modified_gmt":"2022-06-08T09:03:07","slug":"nobel-laureate-paul-krugman-compares-crypto-to-housing-bubble-and-subprime-crisis","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=64956","title":{"rendered":"Nobel Laureate Paul Krugman Compares Crypto to Housing Bubble and Subprime Crisis"},"content":{"rendered":"

\"Nobel<\/p>\n

Nobel Prize-winning economist Paul Krugman has compared the current state of cryptocurrency to the housing bubble and the subprime mortgage crisis. Noting that crypto lacks any real value, he said: \u201cit is a house built not on sand, but on nothing at all.\u201d<\/strong>\n<\/p>\n

Paul Krugman on Crypto, Housing Bubble, and Subprime Mortgage Crash<\/h2>\n

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\nNobel laureate Paul Krugman discussed the current state of cryptocurrency in an opinion piece<\/a> published in the New York Times Monday.<\/p>\n

Krugman won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2008 \u201cfor his analysis of trade patterns and location of economic activity,\u201d the Nobel Prize website details.<\/p>\n

He began by referencing The Big Short, a book and a movie that tell the story of investors betting on \u201cthe proposition that the huge rise in housing prices in the years before the [2008 global financial] crisis was a bubble, and that many of the seemingly sophisticated financial instruments that helped inflate housing would eventually be revealed as worthless junk,\u201d the economist described, adding:\n<\/p>\n

\n

It just didn\u2019t seem plausible that markets, and the conventional wisdom saying that markets were OK, could be that wrong. But they were.<\/p>\n<\/blockquote>\n

\n
\nProceeding to discuss \u201cthe current state of crypto,\u201d he cited the Federal Trade Commission (FTC) stating<\/a> that cryptocurrency is becoming the payment of choice for many scammers. He also mentioned the collapse of algorithmic stablecoin terrausd (UST), stating that the \u201cstablecoin\u201d was \u201cneither stable nor a coin.\u201d<\/p>\n

Krugman then pointed out that at their peak in November, cryptocurrencies\u2019 total market value was almost $3 trillion. He added that early investors made huge profits, renowned business schools offer blockchain courses, and several cities are competing to become the most crypto-friendly.<\/p>\n

The Nobel Prize-winning economist opined:\n<\/p>\n

\n

It sounds extreme and implausible to suggest that an asset class that has become so large, whose promoters have acquired so much political influence, could lack any real value \u2014 that it is a house built not on sand, but on nothing at all.<\/p>\n<\/blockquote>\n

\n
\n\u201cBut I remember the housing bubble and the subprime crisis. And if you ask me, it looks as if we\u2019ve gone from the Big Short to the Big Scam,\u201d he concluded.<\/p>\n

What do you think about Paul Krugman\u2019s comments? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

Nobel Prize-winning economist Paul Krugman has compared the current state of cryptocurrency to the housing bubble and the subprime mortgage crisis. Noting that crypto lacks any real value, he said: \u201cit is a house built not on sand, but on nothing at all.\u201d Paul Krugman on Crypto, Housing Bubble, and Subprime Mortgage Crash Nobel laureate […]<\/p>\n","protected":false},"author":2,"featured_media":64957,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[309],"tags":[],"class_list":["post-64956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/64956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64956"}],"version-history":[{"count":0,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/64956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/media\/64957"}],"wp:attachment":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}