The current value (R4 947) of crypto-currency Bitcoin, down from a high of $1 200 (R14 858) in 2013. The World Bitcoin Association, with less than $300 000 (R3.7m) in liabilities, applied for bankruptcy protection in the US on 16 March.
“We don’t know – nor does the Fed know – exactly how much tightening will knock over the apple cart. What we do hope the Fed knows, which we don’t know, is how exactly it will fix things if it knocks it over. We hope that they know that before they make a move that could knock over the apple cart.” – Ray Dalio, founder of Bridgewater Associates and one of the world’s most powerful hedge fund managers, and his colleague Mark Dinner in a note to clients. Bridgewater warned that the US Federal Reserve may cause a 1937-style slump in equity markets. The Dow Jones Industrial Average dropped by a third in 1937 after the Fed prematurely tightened money supply after four years of money printing, which led to a jump in equity valuations.