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A comment on Tether Required Recapitalization in May 2022. Parent comment

Re:Tether Required Recapitalization in May 2022 by ceeplusplus on Friday May 20, 2022 @03:21PM (#31451479)
Comparing sophisticated market makers trading using their own money to "hedge funds" run by some rich guy's son charging 2 and 20 are hardly the same.

The bank in Margin Call was packaging MBS out of mortgages, not speculating on the price of commodities using derivatives to gain leverage.

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Re:Tether Required Recapitalization in May 2022 by rsync on Friday May 20, 2022 @03:44PM (#31451703)
"The bank in Margin Call was packaging MBS out of mortgages, not speculating on the price of commodities using derivatives to gain leverage."

Correct. That's my point.

It's not merely that you can't have one without the other ... it's that you very likely wouldn't want to eliminate the (margin call guys) even if you could.

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Re:Tether Required Recapitalization in May 2022 by robertlagrant on Friday May 20, 2022 @03:26PM (#31451518)
The person you're replying to was talking about futures traders. Where did you get a rich guy's son from?
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Re:Tether Required Recapitalization in May 2022 by ceeplusplus on Friday May 20, 2022 @03:28PM (#31451540)
Speculating on futures and other derivatives is basically what those rich guy's sons are doing in their hedge funds. Most hedge funds get worse returns than the S&P 500.
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Re:Tether Required Recapitalization in May 2022 by jtbayly on Friday May 20, 2022 @04:14PM (#31452006)
So... then let them? If they're losing money compared to what they could by doing nothing, I don't see the problem.
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Re:Tether Required Recapitalization in May 2022 by scatters on Friday May 20, 2022 @05:28PM (#31452731)
Getting worse returns than the S&P 500 is still valuable, if those returns are uncorrelated.
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