Just how out of touch is this guy? 50% inflation MoM within the next 90 days? Does he not understand the multiple system shocks that would need to take place for that to even come close to reality? Balaji, please - get out of your bubble. Go talk to your neighbors. They're all concerned about where to go for their kids spring break, the next episode of Mandalorian, and whether or not their bracket is still in content…
I’m convinced he is trolling, he posted another tweet where he says this: > This isn't your typical fractional reserve situation. The problem is that there isn't enough in the banks on a mark-to-market basis to cover withdrawals. How are people going to withdraw money and not put it into another bank? This guy is just saying ridiculous shit for attention, there’s no way he’s this stupid. Again, his thesis is that ban…
Maybe it goes something like this: AIUI the act of pulling money out of the banks will crash them, one by one. Along the way the government will continue to print to try to backstop it and restore confidence. The act of this just speeds up the demise. The money will get centralized to the GSIBs. But they have the same problem.