I guess his new name will be Sam Fried.
We will not pursue the potential acquisition of FTX
261–270 of 440 posts
Re: We will not pursue the potential acquisition of FTX
#262It's amazing how all of this was based on personal credibility, and a single Tweet caused the death spiral to start. Wells Fargo isn't going to go out of business if the CEO of Bank of America insults it on Twitter. But even if it did , there is FDIC insurance for deposits, and nobody whose balances were under the insurance limits will lose a penny. FTX succeeded solely based on the reputation and personal credibilit…
Read the comments here. They are a lot like the LiveStreamFail subreddit - minor celebrity gossip.
In that context, it’s not so surprising that a tweet had the effect it had.
Re: We will not pursue the potential acquisition of FTX
#263Earlier quoted context omitted.
FTX going under due to magic beans reminds me so much of Lehman Brothers going under in 2008. That time the magic beans were "mortgage backed securities" that somehow took low-quality debt, mixed it up with some magic, and out came high-quality debt, only it didn't.
"Certainly more study is needed on this issue. But the degree to which the Community Reinvestment Act (renewed and strengthened in 1995; see attached chart), the Home Mortgage Disclosure Act and the many other planks of the raft of federal regulation which have built up over the past couple of decades has pushed the banking industry into making the loans for which they are now being criticized is far and away the mos…
Bad loans being transformed into A+ loans through bundling wasn’t forced by the govt.
And the government didn’t force banks to buy loans from originators who were known to fake documents, and then give them 120 LTV loans.
Re: We will not pursue the potential acquisition of FTX
#264Earlier quoted context omitted.
Gambling with customers' funds works great for you when you win, and bad for your customers when you lose.
and this is why banks are not allowed to use customer deposits for such activities. And if they do, they must have equity value to back it up - aka, the bank's share holders lose value _first_ when shit hits the fan, before customer deposits. Then lastly, the gov't has put up guarantees on the deposits in case bank equity cannot cover customer deposits when shit hits the fan. Crypto has none of the above - so basical…
A lot of people have been smoking the copium pipe with crypto. Whenever you rightly make these points there's a flurry of downvotes. The only benefit crypto had, was to early movers. Beyond that it's a waste of effort.
I expect in a recessionary environment the pressure for a wider crypto market will be too great for many large operations to sustain.
Let's hope all those celebrities who made adds got paid in real cash!
Re: We will not pursue the potential acquisition of FTX
#265What's even more funny is that Binance make it look like they are a stable financial institution, and it's thanks to their high standards that they won't acquire FTX. Binance is most probably much more of a fraud than FTX. Binance doesn't even have physical headquarters in any country in this world - and the reason is that they are being actively investigated or banned almost everywhere.
They are banned mainly because they like to skirt KYC and similar regulations. It doesn't mean their financial engineering is poor. Those two issues are completely orthogonal.
Binance KYC's process is a joke. I've been using them for years, suddenly they needed more KYC and their automated process failed me more than 4 times in couple of months.
Glad they failed me though, life turned out pretty great without me gambling on meme coins.
Re: We will not pursue the potential acquisition of FTX
#266CZ knew about the bad leverage to begin with, which is why he tweeted about selling all of the FTT What are the chances he never intended to buy FTX, just to destroy it after their public back and forth? It's almost like a reverse Musk - he sent a purchase offer with an option to back out no matter what CZ knew from day 1 all he needed to do was crash FTT just enough, and the rest would happen organically
I called it and saw many others call it too. Cause a run on FTX, get due diligence and say it’s F**ed, and get their user-base for free. My concern is how much funding FTX and SBF in particular were giving to EA/AGI Safety research labs and charities. There’s going to be some significant knock on effects there when the money is no longer available.
> AGI Safety research labs
If they are not part of a university, it is probably pretty sketchy anyhow.
Re: We will not pursue the potential acquisition of FTX
#267MSTR down 50% in 2 days. That will also be going to zero, too given how much debt it carries. Leverage on an such a volatile but likely worthless asset is financial suicide. What were these people thinking. Leverage on index funds is pretty risky, but on bitcoin? Makes no sense.
Will they be put into forced liquidation on 130k BTC?
Re: We will not pursue the potential acquisition of FTX
#268Earlier quoted context omitted.
"Certainly more study is needed on this issue. But the degree to which the Community Reinvestment Act (renewed and strengthened in 1995; see attached chart), the Home Mortgage Disclosure Act and the many other planks of the raft of federal regulation which have built up over the past couple of decades has pushed the banking industry into making the loans for which they are now being criticized is far and away the mos…
That banks extended bad loans under pressure from the government suggests they did so at a loss; otherwise, they would have done it anyway in search of profit. Moreover, Sowell makes bold claims and offers little evidence beyond references to redlining, while the evidence that banks were engaged in unethical and fraudulent practices are backed up by cold-hard data and an abundance of testimony from people within the…
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Re: We will not pursue the potential acquisition of FTX
#269Earlier quoted context omitted.
"Certainly more study is needed on this issue. But the degree to which the Community Reinvestment Act (renewed and strengthened in 1995; see attached chart), the Home Mortgage Disclosure Act and the many other planks of the raft of federal regulation which have built up over the past couple of decades has pushed the banking industry into making the loans for which they are now being criticized is far and away the mos…
By government you mean a handful of legislators. The public has been treating their Senators and Representatives like celebrities. Electoral turnovers flush corruption; we really need to stop being ruled by pudding brains with no skin in the future game who LARP concern while doing nothing but living easy: https://www.nber.org/papers/w29766
I mean, ultimately government == a handful of legislators plus the executive and judicial branches. If you're suggesting we could avoid this by having the right people in office, you are right. But the founders of our government also clearly stated that if men were angels, they wouldn't even need to be governed, and if the government were run by angels, it wouldn't need to be limited, nor would it need checks and balances. We've forgotten this lesson over and over as our government continues to grow and remove checks against its power.
Re: We will not pursue the potential acquisition of FTX
#270What's even more funny is that Binance make it look like they are a stable financial institution, and it's thanks to their high standards that they won't acquire FTX. Binance is most probably much more of a fraud than FTX. Binance doesn't even have physical headquarters in any country in this world - and the reason is that they are being actively investigated or banned almost everywhere.
> and the reason is that they are being actively investigated or banned almost everywhere.
That's not an indication of anything wrong with Binance. A more plausible explanation is that the laws are too oppressive "almost everywhere".