Eastman Kodak Company (KODK)

[Imperial Whazoo]

Yep. Me too.

The big boyz are smashing coin prices and all things mining related are following suit. Kinda shows that the fiat currency boyz are 100% clear in their understanding that coin mining, if successful, means the end of the hegemony of the fiat currency era. Its a matter of survival & they control the futures markets and the agencies such as the SEC.

I've learned something from this sad episode in my trading career: a futures contract that is cash settled can become a crowbar with which to run a bottomless short. There's the problem with a cash settled futures contract. In a commodity like oil or one of the grains, there is a finite limit because the thing is settled in whatever units the commodity is in.... barrels or bushels or whatever. On a cash settled contract, guess what? You just throw cash at it rather than taking delivery. Getting stopped out? No problem.. Just throw more fiat currency at it, control the threat, and in the end, you lose less than you would have if the thing had run amok.

I mean, from a loss point of view, which is worse? Losing everything due to the threat posed to the hegemony of the fiat system by cryptos or losing the fiat currency you create out of thin air & throw into a bottomless short? How much does it really cost for the big bank types to throw fiat currency at a short? All they lose is money and they were going to lose mountains of money anyway.

Until the futures contracts on the CME & CBOE showed up, the disruptive potential of cryptos was unrestrained. And everyone on the planet could load a chart of bitcoin vs the dollar and see the uncontrolled nature of the threat cryptos posed. Once they had the cash settled futures in place, crypto prices could be walked down,

And just go back & take a gander at the declines that have been steady since just about the time the futures contracts showed up as a variable in the overall equation. Direct parallel. They had no controls restraining disruption and prices ran up. Then the control mechanisms are put in place. Voila! Down come prices.

Raw power play. And guess who gets hurt? Companies who jumped in and took a risk.

Like KODK, who was failing anyway, so what did they have to lose?

It is a hard lesson but it is my takeaway. KODK may eventually come out with a coin. It all depends on whether the SEC permits their end-run filings. Clever attempt by KODK but the SEC may throw a monkey wrench in the works. We'll just have to watch and learn. I seriously doubt that the SEC is going to let KODK be the test case for their stance of whether coins are securities or not.

We'll see.

Imperial Whazoo