This is so dumb.

Luna ate shit because someone murdered it. It's replaying 1992... by design.

He doesn't get 2008 either. The bad backing in 2008 wasn't mortgages, it was artificial bets on whether mortgages would fail. Surprise! They did! Except since you earned more money on a mortgage that will almost fail, the banks wrote a lot of mortgages that failed.

And let's talk about the money, shall we? It took a billion dollars in leverage to extract about 800 million in value from a blockchain with about $8b in it. The $8b is all gone, but it was about a $40b blockchain a month ago so really, the market did hella worse to Terra than Terra did to themselves. Compare and contrast: Countrywide was 1.9 trillion in mortgages. The government paid $182 billion to bail out AIG. Wendy's lost a half billion dollars in market cap yesterday because apparently their earnings per share were a penny under estimates.

Terra was dumb, Do Kwon is an asshole, a fool and his money are soon parted, but cryptocurrency shenanigans have as much to do with 2008 as they do with ZZZZ Best or LTCM or the S&L crisis or Russian contagion or the bankruptcy of Brazil or Black Monday or any other example you care to list, idiots in general and David Gerard in particular point to 2008 because it's widely accepted that it was a case of Bad Financial People Being Bad, scold and move on, no need to learn anything after all that shit was entirely out of our hands amirite?

It's lazy shit like this:

Stablecoins are a modern form of the wildcat banks of the 1800s, which issued dubious paper dollars backed with questionable reserves.

Algorithmic stablecoins are ETFs. They're modeled on ETFs. But you're only allowed to make fun of people who question the wisdom of ETFs.

But instead let's pick on Tether, because we always have to pick on Tether, without noting that every bank in the developed world gets a government guarantee at 5% backing and Tether is 75% bonds. 'cuz god forbid you explain fractional reserve banking to the proles, they might start to wonder about the whole shaky system.

You might be asking why either UST or luna is worth anything in the first place, given they were created ex nihilo by Terra.

like I said

So yeah. This is definitely like 2008, because "despairing messages" on Reddit are 100% equivalent to six million households being foreclosed on. For sure - Occupy Wall Street and the Tea Party will be riiiiiiight back again because Terra ate shit. And this sort of tedious moral scolding with no attempt to understand what's actually going on, let alone explain it, will allow people to continue to believe they have no power over the man behind the curtain so why even bother trying to figure out what he's doing.