SV bound!

Walter Bagehot pinpointed the issues with central banks over 150 years ago. Here is a summary courtesy ChatGPT ———- Walter Bagehot, the 19th-century British economist and journalist, is best known for his book Lombard Street (1873), where he laid out both his admiration for and his worries about the emerging central banking role of the Bank of England. His concerns were not abstract; they came from observing repeated financial crises in London. Here are the key concerns he expressed about central banking: ⸻ 1. Moral Hazard and Discipline • Bagehot worried that if the Bank of England acted as a permanent backstop, commercial banks might take excessive risks, assuming the central bank would always save them. • To counteract this, he argued that central bank lending in a crisis should come at a penalty rate (above market rates) and only against good collateral. This would discourage reckless behavior while still providing necessary liquidity. ⸻ 2. Transparency and Public Confidence • He was concerned that the Bank’s policies were opaque and sometimes improvised. • He argued that a central bank needed clear, consistent rules of conduct in crises, since uncertainty could worsen panic. • His principle: “Lend freely, at a high rate, on good collateral.” ⸻ 3. Reluctance to Accept Its Role • Bagehot worried that the Bank of England often denied its central responsibility, treating itself like just another private bank. • In reality, because of its size and position at the center of the financial system, it was the lender of last resort. He cautioned that shirking this role could lead to devastating runs and bank failures. ⸻ 4. Fragility of Confidence • He noted that financial systems are built on confidence, and that once panic starts, only decisive central bank action can restore trust. • He worried that hesitation or half-measures by the Bank of England would worsen crises, as people would withdraw deposits faster if they sensed weakness. ⸻ 5. Concentration of Power • While he defended the necessity of a central bank, he recognized that concentrating so much financial power in one institution carried risks. • He believed the Bank of England should use its power responsibly, guided by principles that protected the broader system, not just its own shareholders. ⸻ ✅ In short: Bagehot’s central concern was how to balance stability with discipline. He wanted the central bank to act forcefully in crises to prevent systemic collapse, but also feared that careless or overly generous support would undermine market discipline and encourage recklessness.

If I were the DEVIL. By Paul Harvey

Mystery Trip to Berlin, El Salvador last Saturday and Sunday. I met some of the most amazing and interesting people at The Whale House and the Rabbit 🐇 Hole Bitcoin Club. Time well spent!

From Shanaka Alnslem Perera @shanaka86 What you’re seeing isn’t a price glitch. It’s a suppression algorithm. An invisible war between ETF market makers, custodians, and the Fed shadow layer. This isn’t “no price action.” It’s full-spectrum liquidity lockdown. The smart money already bought. Now they’re engineering apathy. No hype. No breakout. No spark. Just deep, quiet absorption. And when the gate opens… Bitcoin will exit gravity. Because the price was never the signal — The silence was.

Discipline is my alarm clock ⏰. What will my best version make of today?

RIP Ozzy! Today I begin listening to all my favorite albums from Black Sabbath to Ozzy's solo career! In honor of a fantastic vocal artists.

You teach people how to treat you by what you tolerate.

🤔Notice the people who bring out your favorite version of yourself.⚡️

Join Blick to save 10% on all your sharpening needs. Save 20% for scheduled weekly or bi weekly restaurant sharpening.

Download Blink – The Everyday Bitcoin Wallet

Blink is Bitcoin Lightning Wallet that provides a reliable and secure way to send and receive bitcoin on chain and with the Lightning Network, with...