It’s been "calamitous" for those in the stock market or "exposed to things like bitcoin", according to Sky News host Cory Bernardi.
He said the sudden drop in stablecoin value is a salient reminder any market can be vulnerable to the “machinations of big players”
“A lot of investors, though, have only experienced the bull markets delivered through the money printing of recent times,” Mr Bernardi said.
“But when the music stops, reality hits hard, and the reality is that inflation is back, interest rates are rising, and governments are pledging to stop the cash printing.”
He said it’s like we’ve been hit by a “perfect storm”, but it’s entirely at the fault of the government.
“The irrationally exuberant investment markets of recent years have actually been a product of an almost delusional investment environment created by government policy decisions,” he said.