Philip Patrick

So the entire speculative complex is losing oxygen at the same time, which means

Crypto collapse is not an isolated storm.

As you put it, I think it's the canary in the coal mine.

We've seen this exact pattern over and over again.

We saw it at the turn of the century in 2000.

We saw it in 2008.

We saw it briefly in 2022.

When the system gets shaky, traders dump the lowest quality, highest volatility assets to raise cash at essentially

lower their risk exposure.

So yes, crypto is the first domino, but it's not the only one wobbling.

We're seeing wider spreads in credit markets.

We're seeing hedge funds now deleveraging.

Retail investors are pulling to the sidelines.

This is a classic flight to quality moment.

But the big problem is the so-called risk-free assets, they're not working either.

Government debt has been a major loser for the last five years.

Cash is a

sure loser when we adjust for inflation.

And the dollar, as we've discussed many times, is just not acting like the safe haven it once was.

The big problem I see is that the safety valve of the financial system is also broken.