Crypto implosion at FTX. The emperor has no clothes. When they tell you everything if fine it’s time to run away.

Sam Bankman-Fried No Longer a Billionaire After $14.6B Overnight Wipe-out

They had a 1930's style "run on the bank". On another note, naming rights for FTX Arena in Miami may be available:D

I would absolutely take the 40 yr experienced CFA (NOT a CFP) over the self-made billionaire with an MIT degree. That just tells me he is an excellent engineer that managed to fill a very large, previously-unfilled, niche in the market. It doesn't tell me he knows a fig about financial theory and the inner workings of the money industry. It tells me he knows how to make a motherboard. As a guy with an advanced degree from a private Division I university, I will tell you, I don't give a whole lot of weight to if / where someone went to college. MIT is no different, it doesn't have the cache with everyone you think it does. Nor do any of the ivies.

The difference between finance and engineering? fairly straight word:

engineering used the physical laws of nature, which have very specific properties and very, very narrow std deviations of differences, validated over and over again.

finance and economics are abstract concepts, finance about valuations based upon the future. Economics is about how humans manage money and make decisions about money, which has very large standard deviations, and results from the conceptual thoughts and feelings emanating from the brain.

neither is smarter than the other, but different yes, and seldom do these skills cross over very well into the other area of expertise

but you are all free to believe whatever you want to believe

philosophy guy

BTC is sub $17K right now, it's tough being a bull at this point in history!

Joe

If you look at many, many new product companies, there is a very fast growth, and then slowly, other products are produced to compete, and with more supply and competition, the price drops and eventually these new product companies go to commodity status. . . meaning that the expected growth is the same as the economy, unless the company internally mismanages the cash and the company goes bankrupt. . such as carvana,
perfect chart of hot company and then mismanages cash flow through greed and other insider enrichment schemes, and now they are near zero and will be bankrupt within a year

nothing new with crypto currency, other than its a thieve's currency

“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
The dialogue above is from Ernest Hemingway’s 1926 novel, The Sun Also Rises

After reading many of the comments on The Yahoo site regarding the collapse, I thought this was the best and most relevant quote.

""If $14.6 billion was wiped out overnight, I'm guessing it was never really there to begin with.""

Video for thinking people...Fitting after the mid-term election.

https://www.youtube.com/watch?v=ZcjFrIMw2sI

https://www.youtube.com/watch?v=uix5BrzMTBM

Time to withdrawal consent?

lol! Yup!

SBF will be serving some jail time. Are the Bahamian jails nicer than those in the US?

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so,” said Mark Twain……..

Seems like that quote applies to this mess.

I never had any interest in this type of investment — never smelled right to me…….but I do recall a couple of threads on here that were rather mocking of more traditional investors who either showed no interest or pointed out the potential for collapse.

CNBC can’t seem to talk about anything else this morning.

The emperor is buck nekkid.

Boomer

Some things are difficult to see coming, but this wasn’t.

From an investor point of view yes, but from a crypto point of view, no, there is no regulation, so its a wild, wild west for thieves, and if you thought that everyone played nice in the wild, wild west, you read the wrong books. If anyone reads the history of banking in the 1800s and early 1900s, they will understand the reason for the centralization and standardization of the banking system. History does rhyme here.

As far as any belief in engineering credentials can override human behavior, doesn't matter, behavioral economics rules, which has nothing to do with economic equations. . .

Understanding the Bitcoin dynamic requires high-order conceptual thinking ability as well as higher-order finance. All others can do is just watch their television to be told what to think by people who are trying to own them.