{"id":42713,"date":"2013-10-04T05:35:28","date_gmt":"2013-10-04T09:35:28","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=42713"},"modified":"2013-10-04T05:35:28","modified_gmt":"2013-10-04T09:35:28","slug":"friday-charts-r-i-p-bitcoin-shrinkage-and-the-best-case-of-deja-vu-ever","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/04\/friday-charts-r-i-p-bitcoin-shrinkage-and-the-best-case-of-deja-vu-ever\/","title":{"rendered":"Friday Charts: R.I.P Bitcoin, Shrinkage and the Best Case of D\u00e9j\u00e0 Vu Ever"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

Words mean little on Fridays in the Wall Street Daily Nation<\/i>.<\/p>\n

Instead, we try to let pictures do the talking for us.<\/p>\n

Each week, I select a handful of graphics to put important economic and investing news into perspective for you.<\/p>\n

I\u2019ll (mostly) shut up now. Enjoy!<\/p>\n

Bitcoin Scam Update<\/b><\/p>\n

Earlier this year, you would have thought that a Bitcoin could cure cancer. End heart disease. Even reverse aging.<\/p>\n

The hype was that<\/i> intense.<\/p>\n

You\u2019ll recall that, back in May<\/a>, I told Bitcoin investors to channel their inner Ice Cube and \u201ccheck yo\u2019 self before you wreck yo\u2019 self.\u201d I hope you listened.<\/p>\n

Yesterday, the overhyped digital currency plummeted 33% on news that the FBI seized and shut down Bitcoin-based online marketplace, Silk Road.<\/p>\n

\"\"<\/p>\n

Perhaps most damning, the criminal complaint against Silk Road reveals that someone was able to get a list of Bitcoin users. So much for the digital currency offering anonymity – which, incidentally, was heralded as its main benefit.<\/p>\n

As Bloomberg\u2019s<\/i> Mark Gimein says, \u201cThe only point left in its [Bitcoin\u2019s] defense might be that you don\u2019t like central banks or national currency. If so, for those left holding a bunch of Bitcoins, this can turn out to be a very expensive protest.\u201d<\/p>\n

Agreed! Consider this your final warning. Cash in your Bitcoins while you still can.<\/p>\n

Talk About Being a Drag<\/b><\/p>\n

The government shutdown continues. Dun-dun-duuuuun!<\/p>\n

While I\u2019d like to ignore it, I can\u2019t.<\/p>\n

As Goldman Sachs\u2019<\/b> (GS<\/a>) Alec Phillips points out, “For every day of shutdown, federal compensation in Q4 is reduced by $400 million.” Less income for government employees equals less spending. So at some point, the shutdown is going to start weighing (heavily) on the economy.<\/p>\n

But where is that point?<\/p>\n

\"\"<\/p>\n

I\u2019d say it\u2019s around 21 business days. At that point, the shutdown would slash GDP growth for the fourth quarter by about 40%. Yikes!<\/p>\n

Enough with the grandstanding, fellas. Get back to work!<\/p>\n

D\u00e9j\u00e0 Vu Anyone?<\/b><\/p>\n

Let\u2019s play a little game of \u201cName That Year\u201d in U.S. history\u2026<\/p>\n