Thurs Blogcast: Crypto crashes; Leg update; property tax relief


Just One Thing

I'm NOT expert on the subject of cryptocurrencies but I do know that what we've seen this week throughout that complex, but especially with a particular pair of cryptos called Terra and Luna, strike at the heart of the entire crypto project.

A "stablecoin" called Terra that is supposed to trade at $1 has plunged to about 2 cents. Another crypto that is related to Terra in a complex way, called Luna, which just six weeks ago was trading over $110, are now trading at 3 CENTS. Terra price today, LUNA to USD live, marketcap and chart | CoinMarketCap

Bitcoin and Ethereum, the two biggest and most famous cryptocurrencies are also getting crushed, with BTC down more than 60% from its recent high of almost $69,000. Today it's around $28,000.

Tens of billions of dollars of crypto "value" have been destroyed. I think that a small part of the recent stock market selloff is coming from "investors" wanting to raise cash due to the pain of their crypto losses. I don't know that we'll ever be able to prove that.

Coinbase, the biggest company involved in allowing people to trade and store cryptocurrencies has plunged from its all time high of around $350/share to $50/share in the past six months. COIN Coinbase Global Inc | Google Finance

Microstrategy, which is basically just a company that holds bitcoin, is, unsurprisingly, also being punished, down from $450/share to about $155/share in ONE MONTH and down from over $300 in one WEEK. MSTR MicroStrategy Incorporated | Google Finance

A ridiculous "investor" who has become famous with people who are the worst investors ever is Cathie Wood who runs the ARK Innovation ETF. That moronic product, which basically just puts huge amounts of money into the least profitable companies that the dreamers have high hopes for based on almost nothing, is down from $120/share to $36/share in the past six months. ARKK ARK Innovation ETF | Google Finance

By the way, if you see the picture for this blog, it is for a well-attended recent meeting. When you see stuff like that...people with almost no experience in markets getting together to cheer about some "investment" that they all own, you know bad things are about to happen. It is ALWAYS that way. Sadly, I didn't get out of my very small position in BTC. I'm down about $10,000...lots of people are down a LOT more.

Also worth noting that tech and social media stocks have gotten wrecked in the past few weeks as has Tesla which has exposure to cryptocurrency. One wonders whether Elon Musk will go ahead with his takeover of Twitter, especially if he was collateralizing the loans he would use to buy the company with his holdings in TSLA stock which is down from around $1200 to around $700 in recent weeks. I would not be surprised to see him try to renegotiate the price. As I mentioned on yesterday's show, the price at which TWTR was trading yesterday shows significant skepticism that the deal will be consummated, at least at the price originally agreed upon ($54.20/share).

Finally, another stock that's gotten destroyed is Beyond Meat (which makes plant-based meat substitutes like the Beyond Burger.) The stock is down from a high of around $150 last summer to around $20 today based on larger than expected losses and much worse than expected margins. BYND Beyond Meat Inc | Google Finance

Today's Guests

Colorado State House Minority Leader Hugh McKean joins us to recap the 2022 legislative session which ended with a whimper yesterday. Here's a good summary from the Colorado Sun about some of the most important bills that did and didn't pass this year: 100 bills debated at the Colorado legislature this year (coloradosun.com)

--------

Michael Fields is executive director of Colorado Rising Action. He was pushing a property tax relief ballot measure but has agreed with withdraw it based on legislation that reduces property taxes modestly for two years. We'll talk about what the new law does and what the longer-term looks like for property taxes for Coloradans.

Colorado Rising Action (facebook.com)

2023 And 2024 Property Tax | Colorado General Assembly

Legislature approves property tax cuts for 2023 and 2024, sending bill to governor - Colorado Newsline

Other Stuff

One of the dumbest tweets ever from a serious organization of "journalists": (3) The Associated Press on Twitter: "Elon Musk boasts that he’s acquiring Twitter to defend freedom of speech. But he has long used the platform to attack those who disagree with him. https://t.co/qhgm1zQOkz" / Twitter

--------

Vladimir Putin is causing the exact opposite of his NATO-weakening goals and now he's threatening the west if Finland goes ahead with their announced intent to join NATO.

Joint statement by the President of the Republic and Prime Minister of Finland on Finland's NATO membership - Prime Minister’s Office (vnk.fi)

Russia threatens 'retaliatory steps' if Finland joins NATO (cnbc.com)

Related: I don't generally smile when I learn of people dying but in this case I'll make an exception: The Russians Lost Nearly An Entire Battalion Trying To Cross A River In Eastern Ukraine (msn.com)

--------

Doesn't say much for Denver: HVAC Company Says It Will No Longer Service Customers in Downtown Denver: ‘It’s Not Worth It’: – CBS Denver (cbslocal.com)

--------

Cool nerdy biology stuff: Bats mimic hymenopteran insect sounds to deter predators: Current Biology (cell.com)

Slightly creepy but cool human physiology: Death could be reversible, as scientists bring dead eyes back to life (telegraph.co.uk)

--------

Not a nice story, but at least a sense of karmic justice: Man died while burying girlfriend he allegedly strangled, authorities say - CBS News

--------

Mitt Romney is asking the FDA what's taking so long in reopening baby formula production plant: Baby formula shortage: Utah Sen. Mitt Romney asks FDA, USDA for answers - Deseret News

Meanwhile, Abbott says their factory was not the source of the bacteria that killed two infants: FDA refuses to say when baby formula plant will reopen despite company's claims the facility is safe | Daily Mail Online

--------

Well that's a letdown: https://www.abc57.com/news/mysterious-safe-opened-after-more-than-50-years-at-ruthmere-museum

Today's Photos and a Video

Yesterday I did a brief inspection of my new beehive after two weeks of operation. Here are a couple of pictures for those who are interested. Note, in the second picture, the queen bee alive and well (with the yellow dot on her back.)

This is an unbelievable story: A valedictorian speech by a young woman whose autism prevents her from speaking.

Rollins College graduation speech by valedictorian with autism (wesh.com)


Sponsored Content

Sponsored Content