It's a minor point, but an important one to consider when looking ahead. If the STEEM price declines after creating these SBD, it will increase the debt load and potentially also the liquid supply. This could hypothetically work to put further downward pressure on an already declining price.

Agree on your entire comment, but just to clarify on this one point, this is simply leverage, and works in both directions (both up and down) and, in general, the leverage ratio is quite low (1.1x at the most). In fact I would argue that in most circumstances that low of a leverage ratio is reasonable to ignore. The extremely poor liquidity pre-HF16 might have been a circumstance where it wouldn't be, but even that I'm not sure about. A situation with bad liquidity and declining demand is probably just about as bad with 1x leverage as with 1.1x.