Wednesday morning news drop
The Brutal Truth About Bitcoin Despite their high valuations on paper, a collapse of Bitcoin and other cryptocurrencies is unlikely to rattle the financial system. Banks have mostly stayed on the sidelines. As with any speculative bubble, naïve investors who come to the party late are at greatest risk of losses. The government should certainly caution retail investors that, much like in the GameStop saga, they act at their own peril. Securities that enable speculation on Bitcoin prices are already regulated, but there is not much more the government can or ought to do. (New York Times)
Fed explores ‘once in a century’ bid to remake the U.S. dollar The rise of private cryptocurrencies motivated the Fed to start considering a digital dollar to be used alongside the traditional paper currency. (Politico)
How ‘Chaos’ In the Shipping Industry Is Choking The Economy Economists are concerned that the plumbing provided by these miracle boxes and the vessels that transport them is clogged. It’s making it more difficult for stores to restock their shelves, manufacturers, carmakers and builders to get the parts they need, and farmers to export their products. It’s an important reason, analysts say, that we’re seeing consumer prices surge. (NPR)
Wall Street isn’t to blame for the chaotic housing market The boogeyman isn’t who you want it to be. (Vox)
Housing Markets Flash 2008 Style Warnings New Zealand, Canada and Sweden rank as the world’s frothiest housing markets, based on key indicators. The U.K. and the U.S. are also near the top of the risk rankings. (Bloomberg)
Philosophy’s lack of progress: For centuries, all philosophers seem to have done is question and debate. Why do philosophical problems resist solution? (Aeon)
Photos: California’s Growing Drought Disaster After two of the driest years in decades, many of California’s reservoirs are expected to reach record-setting lows this summer, four years after exiting the state’s most recent drought emergency. Lake Oroville, the second-largest reservoir in California, stands at about 37 percent of its capacity. A declared drought emergency for most of the state as farmers are coping with the lack of irrigation water, and fire crews are preparing for a potentially disastrous fire season. (The Atlantic)