Austan Goolsbee: prediction

Transcript context

…Can we do anything? They’re chartered abroad. Is it Cayman Islands? I don’t know. I don’t know. The question of what’s inside the safety net and what’s outside the safety net is a super important problem. You probably know, I was very close friends with Paul Volcker, and he was a mentor to me and really one of my personal heroes. We went through the analysis of the financial crisis of ’07 and into ’08 and Bear Stearns and the financial crisis and the response. He, early, early on, identified this question that it’s all going to come out. At some point soon, they’re going to be like, “Who gets rescued and who doesn’t?” Anything that’s too risky has got to stay outside the shadow of rescue, if you want to think of it that way. If it’s risky, it can’t get it. Where I start to get nervous — and as I say, I’m not anti-crypto. I like innovation and financial innovations. If we start attaching risky things to the payment system, now I’m getting nervous because we know that in financial crises, we must make sure that people can still make their payments, that they’re not getting evicted, and they make their house payment, or they can buy groceries, or they can buy whatever. If stablecoins started turning into actually the money that we’re using to pay — And they are turning into that.…

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